The Confederation of British Industry (CBI) has launched a new Defence & Economic Growth Taskforce aimed at unlocking the potential of the UK’s defence sector to drive long-term national growth, innovation, and economic resilience.
Backed by Chancellor Rachel Reeves and Defence Secretary John Healey, the taskforce brings together top-level figures from across the defence, financial, and investment sectors. It will work at pace to deliver actionable recommendations to the government within 12 weeks, setting out how the UK’s planned increase in defence spending—rising to 2.5% of GDP by 2027—can be translated into wider economic benefits.
The taskforce will be led by CBI chief executive Rain Newton-Smith and jointly chaired by the Chancellor and Defence Secretary. It will be supported by strategic partners including management consultancy Oliver Wyman, PA Consulting, ADS Group—the trade body for aerospace, defence, and security—and several of the UK’s leading financial institutions.
“In these turbulent times, the government is right to position the defence sector as a key engine of growth pivotal to ensuring our national and economic resilience,” said Newton-Smith. “This taskforce is about turning that vision into a blueprint for action—supporting British innovation, supply chains, and communities through strategic investment in defence.”
The new initiative is focused on how defence can play a broader economic role—encouraging innovation, accelerating investment and strengthening domestic supply chains. It will explore how institutional, private and public capital can work together more effectively, including through close alignment with bodies such as the Advanced Research and Invention Agency (ARIA), the National Wealth Fund, the British Business Bank, and DIANA (the NATO Defence Innovation Accelerator).
Taskforce members will also examine how government procurement processes and innovation policy can be adapted to reduce time-to-market for new technologies and ensure the financial sector can mobilise capital at scale to support defence-linked growth. The initiative will work in tandem with existing structures such as the Defence Industrial Joint Council to ensure a joined-up approach.
Lisa Quest, Managing Partner for the UK and Ireland at Oliver Wyman, described the initiative as crucial to national progress. “Creating the conditions for accelerated capital flows to defence and dual-use technologies will drive growth across national supply chains and foster innovation across the economy,” she said.
Kata Escott, UK Managing Director of Airbus Defence and Space, added: “A robust defence industrial base is fundamental to our national security and long-term prosperity. This initiative marks a critical step towards deeper collaboration between government, industry, and investors.”
Among those confirmed to join the taskforce are senior leaders from major defence firms including BAE Systems, Babcock International, and ARX Robotics, as well as banking and investment executives from NatWest Group, Phoenix Group, M&G plc, and venture capital firms such as IQ Capital and Ten Eleven.
With the UK facing a rapidly shifting geopolitical landscape, the government has increasingly positioned defence investment not only as a safeguard of national security but as a key driver of innovation and economic growth. Through this taskforce, the CBI and its partners hope to ensure that increased defence spending delivers benefits well beyond the battlefield—stimulating productivity, creating high-value jobs, and securing the UK’s industrial future.