Leading UK and US defence firms will today meet with the Minister of State for Defence, Procurement and Industry, Maria Eagle MP, to look at ways to deepen transatlantic defence collaboration to modernise and strengthen the UK’s defence sector.

The roundtable coincides with BritishAmerican Business releasing a new report which examines the critical role US-owned defence companies play in bolstering the UK’s defence industrial base, creating jobs and growth, and providing innovation, investment, and skills.

The report, which has been developed in collaboration with leading US defence firms, provides recommendations to policy makers to improve US-UK collaboration in areas such as industrial integration, supply chain resilience and research and development.

With the UK government preparing its Strategic Defence Review (SDR) and a consultation on the defence industrial strategy, as well as a second Trump administration looking to reshape US defence priorities, the report calls for even greater transatlantic integration to ensure a resilient and globally competitive UK defence sector.

The report highlights the results of initiatives such as the AUKUS agreement, which accelerates the UK’s progress in technologies such as AI, hypersonics, and quantum computing. The report also looks at the wider positive impact that US-UK defence collaboration has on the UK economy, in particular through high-value job creation; SME support and regional growth; stronger supply chains; R&D innovation; and investment in workforce skills development.

The report makes the following recommendations:

• • Prioritise interoperability and interchangeability: Focus procurement and development efforts on interoperable systems that enhance export success, operational alignment with allies, and global competitiveness.
  • Embed resilience in strategy: Incorporate stockpile integration and resource dispersal into defence planning to mitigate supply chain vulnerabilities and strengthen collective security.
  • Maximise AUKUS potential: Build on momentum of initiatives like ITAR exemptions by implementing dedicated trilateral funding to foster innovation and sustain collaboration in advanced defence technologies.
  • Promote the positive economic impact: Advocate for policies that highlight the contributions of US-owned companies to the UK economy to encourage policies that support and grow this investment.
  • Strengthen US-UK industry engagement: Establish formal structures and mechanisms to deepen US-UK collaboration which includes greater industry engagement, modelled on the Lancaster House Treaties and Trinity House Agreement.
  • Invest in skills transfer and workforce development: Prioritise skills transfer and workforce development within US-UK defence collaboration to meet the growing demand for specialised talent.

The transatlantic defence relationship benefits both economies greatly. In the UK, investment from US-headquartered defence companies contributes towards 165,000 UK defence sector jobs which added £12bn in value to the economy in 2023.

In the US, the UK Ministry of Defence spends on average £3.5bn each year with US-headquartered companies, plus on average, £2.4bn each year with the US government on Foreign Military Sales and International Collaborative Agreements.

BritishAmerican Business CEO Duncan Edwards OBE said:

“The special relationship between the US and the UK has long been rooted in shaping shared defence and security priorities. This report, with insights from leading defence companies, not only highlights the economic and strategic benefits of collaborationm, but also serves as a call to action for policymakers to prioritise and deepen the US-UK partnership.

“BritishAmerican Business stands ready to support defence companies and policymakers in bringing this vision to life, ensuring that the UK’s defence industrial base thrives in an increasingly uncertain world.”