Business leader Andrew Barnett has called on the Chancellor to make real defence and security spending his top priority at the Budget.
Mr Barnett, who is managing director of Hampshire-based Barnbrook Systems and Chair of the South Central Regional Defence & Security Cluster (SCRDSC), warned that there was no time to lose to mobilise the UK’s industrial economy to support its defence and security need. He said that it is imperative that we support, in real terms, UK industries for the benefit and protection of the national interests.
His comments come before Chancellor John Healey’s first budget on October 28 and amid concerns that the government will delay a spending review – including for defence & security – from Spring 2027 to next Autumn.
The review is expected to set out the pathway to government spending 3% of GDP on defence as a milestone to meet a 3.5% NATO commitment by 2035.
Mr Barnett said: “Clarity over defence spending is urgently required along with an acceleration of timescales to hit 3% spending by 2030 ready for 3.5% by 2035.
“Supply chains within industry need to be preparing now to support the creation of a modern military that can protect and secure the UK from rapidly evolving threats.
“That means genuine investment in people, capability, skills and technology as well as closer working with government.
“The Chancellor, himself a former Defence Secretary, has the perfect opportunity at the Budget to deliver clarity, investment and a boost for the economy.
“Business needs certainty and support to have the confidence to invest to be able to deliver the technology, systems and products which the military requires at pace. There is no time to lose.”
Defence spending is currently on track to reach about 2.7% of GDP by 2030. The government says that a target date for 3% spending will be included in the spending review next year.
The government’s Defence Investment Plan (DIP) announced in June proposed increased military spending by £15bn over the next four years but according to Treasury figures £4.7bn has yet to be found through savings or other means – with details expected in the budget on October 28.
The Office for Budget Responsibility calculated in March 2025 that increasing defence spending to 3% of GDP would cost an additional £17.3bn per year by 2029-30.
Andrew added: “These are considerable figures at a time when the Chancellor faces significant economic headwinds.
“However, I urge the Chancellor to set out in detail how the Defence Investment Plan shortfall will be met and to commit to 3% defence spending by 2030.
“Greater investment in defence, security and related sectors will not only bolster the UK’s national security and resilience, it will deliver wider economic benefits too.
“Manufacturing, advanced engineering and technology must become an engine of industrial growth across every region while giving the UK the capability to design, manufacture, repair, scale and support critical equipment in-country.”
With 41,000 direct defence industry jobs supported by MOD spending, the South East has the highest level of direct defence employment of any UK region.
Fareham-based Barnbrook Systems, with nearly 50 staff, delivers global engineering solutions for sectors including aerospace, defence, aviation and maritime.
It is a founding member of the Farnborough Aerospace Consortium, the longest established aerospace and defence trade body in the UK, upon which Mr Barnett sits as a board member.