CBI launches defense and economic growth task force to align investment with national prosperity
The United Kingdom Industry Federation (CBI) has launched a new Defence and Economic Growth Task Force to unlock the potential of the UK defense sector to drive long-term national growth, innovation and economic resilience.
With the support of Prime Minister Rachel Reeves and Defense Secretary John Healey, the task force brings together top figures from the defense, finance and investment sectors. It will make viable recommendations to the government within 12 weeks to clarify how the UK's plan to increase its defense spending to 2.5% between 2027 and 2027 will translate into a broader economic benefit.
The task force will be led by CBI CEO Rain Newton-Smith and co-chaired by the Prime Minister and the Minister of Defense. It will be supported by strategic partners, including management consulting firm Oliver Wyman, PA Consulting, Ads Group (aerospace, defence and security trading agency), and several leading financial institutions in the UK.
“During these turbulent times, government is the right to position the defense sector as a key engine to ensure resilience of our national and economics,” said Newton-Smith. “This task force is to turn this vision into a blueprint for action, which is to support UK innovation, supply chains and communities in defence through strategic investments.”
The new initiative focuses on how defense can play a broader economic role, namely innovation, accelerate investment and strengthen domestic supply chains. It will explore how institutions, private and public capital can work together more effectively, including through close integration with institutions such as the Advanced Research and Invention Agency (ARIA), the National Wealth Fund, the British Commercial Bank and Diana (NATO Defense Innovation Accelerator).
Working Group members will also look at how to adapt to government procurement processes and innovative policies to reduce time to market for new technologies and ensure that the financial sector can mobilize capital at scale to support growth in connection with defense. The initiative will work in concert with existing structures, such as the Joint Defense Industry Committee, to ensure access to the approach.
Lisa Quest, managing partner of Oliver Wyman in the UK and Ireland, said the initiative is crucial to national progress. “Creating conditions to accelerate capital flows to defense and dual-purpose technologies will drive growth in supply chains across the country and promote innovation across the economy,” she said.
Kata Escott, Managing Director of Defence and Space at the UK, added: “A strong defense industrial foundation is the foundation for our national security and long-term prosperity. This plan marks a critical step in deeper collaboration between governments, industries and investors.”
Among those confirmed to join the task force are senior leaders of major defense companies such as BAE Systems, Babcock International and ARX Robotics, as well as Venture Capital companies such as Natwest Group, Phoenix Group, M&G PLC, and IQ Capital, as well as heads of banking and investment from Natwest Group, Phoenix Group, M&G PLC.
As the UK faces a rapidly shifting geopolitical landscape, the government has not only increasingly positioned defense investment as a guarantee of national security, but also a major driver of innovation and economic growth. Through this working group, the CBI and its partners want to ensure that defence spending increases welfare outside the battlefield – stimulate productivity, create high-value jobs, and ensure the industrial future of the UK.
