UK Chancellor and Defence Secretary welcome Defence &…

The Defence & Economic Growth Taskforce has published its findings on defence-driven economic growth, drawing on support from PA Consulting (PA), the global innovation and transformation consultancy, and Peter Lovell, PA’s Global Head of Defence and Security. The UK Chancellor and Secretary of State for Defence have welcomed the report, which outlines a bold vision for mobilising funding, talent, and innovation in defence.

Based on expert input from senior leaders across the defence and financial services ecosystem, the Taskforce has identified two foundational recommendations and four target outcomes. The proposals complement wider government policy, including the Strategic Defence Review and the Industrial Strategy, and set the stage for the upcoming Defence Industrial Strategy. The Defence & Economic Growth Taskforce receives secretariat support from PA and ADS, is led by the Confederation of British Industry (CBI) and Oliver Wyman, and is co-chaired by the Chancellor and Defence Secretary, alongside wider industry and government input.

2025 marks an inflection point in the UK’s defence posture, as our capabilities evolve in response to global threats. But to truly bolster UK defence and position it as national growth driver, we need a new approach – not only to defence acquisition, but also to financing and investment. I am delighted to have contributed to the Taskforce’s latest recommendations, with PA acting as a secretariat. From near-term quick wins to longer-term structural reforms, these recommendations build on the government’s policy direction and can help inform and shape the upcoming Defence Industrial Strategy.”

Peter Lovell PA’s Global Head of Defence and Security

The report’s foundational recommendations are:

Strengthen the demand signal to the market, including through the 10-year Defence Investment Plan, to improve visibility on what the government plans to buy and invest in, timings, and spending costs.
Reset and reinvigorate the national public dialogue to define and embed a cross-sector ‘Team UK’ mindset and approach. Spearheaded by leaders across government, private sector and academia, this could reset understanding on the importance of defence in order to attract capital and talent to the sector.

The report’s target outcomes are:

Deploy UK defence spending as an economic force multiplier, with changes to procurement and contracting.
Improve the global competitiveness of UK defence firms, including through international partnerships and export support.
Mobilise private sector investment, with action from pension funds, banks and asset managers to unlock new financing models.
Attract finance to build a UK defence supply chain, which is resilient and aligned to government priorities.

The evolving needs of UK defence call for a strategic response from the financial services sector. The industry needs to both step up the capital investment deployed across the supply chain, and evolve how the public and private sectors work together to secure financing in defence. The Defence & Economic Growth Taskforce provides a timely focal point for defence and financial services leaders to work through this challenge, and today’s report presents a series of targeted recommendations to address this need.”

Chris Spedding PA financial services expert