£20 Million Investment in Hypersonic Targets to Enhance Air Defence Systems and Support UK Small Businesses

A new £20 million contract is set to significantly benefit British small and medium-sized enterprises (SMEs) across the defence supply chain, exemplifying how the defence sector serves as a catalyst for economic growth. This initiative coincides with the launch of an SME Action Plan designed to dismantle obstacles and expand opportunities for SMEs within the defence industry.

Innovative Defence Development

Under this investment, British small businesses will collaborate on the development of a hypersonic ‘clay pigeon’ target, a sophisticated vehicle designed to simulate threats travelling at speeds of up to five times the speed of sound. This target will play a crucial role in testing missile defence systems aimed at safeguarding the UK from sophisticated threats, including hypersonic missiles.

The contract has been awarded to Lockheed Martin UK and is anticipated to create approximately 63 jobs in Bedfordshire. Additionally, 15 UK SMEs will gain from the associated supply chain, underscoring the defence sector’s role as an engine for economic growth.

Project Bowline: Enhancing Missile Defence

Known as Project Bowline, this initiative will produce an advanced hypersonic target that serves as a high-tech ‘clay pigeon’ for next-generation air defence systems. These systems will include both sensors and interceptors, facilitating the real-time testing of counter-hypersonic missile capabilities. This project is vital for ensuring that the UK Armed Forces maintain a leading position in developing and countering the most sophisticated threats encountered today.

Project Bowline is part of a broader international collaboration known as AUKUS Pillar 2, a trilateral partnership involving Australia, the UK, and the United States, aimed at advancing military capabilities, particularly in hypersonic and counter-hypersonic technologies.

Government Commitment to SMEs

Luke Pollard MP, Minister for Defence Readiness and Industry, remarked on the pivotal role of British businesses in the defence sector, stating, “Our SME Action Plan will provide firms of all sizes with a clearer and quicker route to securing contracts domestically. Initiatives like Project Bowline demonstrate how substantial defence investments are channelled to small businesses throughout the UK.”

The government has committed to spending £7.5 billion with UK SMEs by 2028, alongside an annual allocation of £400 million specifically reserved for UK Defence Innovation. This commitment highlights how defence spending is not only driving economic growth but also sustaining skilled jobs and enhancing national security.

Streamlining Defence Procurement

The newly unveiled SME Action Plan, spearheaded by the Defence Office for Small Business Growth, outlines specific measures aimed at removing barriers faced by SMEs in the defence sector. This includes making supply chains more accessible, simplifying procurement processes, and creating more opportunities across the industry. The initiative marks a significant step towards increasing defence spending with SMEs to £7.5 billion by 2028, representing a 50% increase in current expenditures.

These announcements come as Defence Secretary Wes Streeting MP and Minister Pollard advocate for the UK defence industry at the Farnborough International Air Show, one of the globe’s foremost aerospace and defence trade events.

Strengthening National Defence Capabilities

National Armaments Director Rupert Pearce emphasised the importance of Project Bowline in maintaining the UK’s edge against rapidly evolving hypersonic threats. He stated, “By collaborating with our AUKUS partners and investing in advanced missile technology within the UK, we enhance our national defence capabilities, bolster a key sector of our economy, and ensure effective missile defence.”

The Ministry of Defence currently collaborates with around 12,000 SMEs in its supply chain, a number that has grown since the introduction of the Modern Industrial Strategy and Defence Industrial Strategy. Recent initiatives have included the launch of Defence Growth Deals and Defence Technical Excellence Colleges, awarding contracts to 13 British-based SMEs from the Defence Unicorn Fund, and the annual allocation of £400 million for UK Defence Innovation to foster innovation.

Support from Industry Leaders

Kevin Craven, CEO of ADS, welcomed the launch of the SME Action Plan, describing it as a timely and positive measure that aims to unlock the full potential of the UK’s defence industrial base. He noted that smaller businesses, including over 1,500 ADS members, are fundamental to the industry, providing innovation, agility, and essential capabilities across the UK.

“The commitments to simplifying procurement processes, improving access to opportunities, and enhancing engagement with smaller businesses will ensure that innovative UK companies can compete, invest, and scale confidently,” he added. Craven expressed optimism about working closely with the government and members of the industry to translate this ambition into tangible opportunities for businesses throughout the UK.