- WIADOMOŚCI
The end of big arms deals without benefits for the country? The Brits are changing the game
The United Kingdom is set to introduce new requirements for foreign companies fulfilling large military contracts. For selected orders exceeding £50 million, suppliers will be required to provide economic benefits to the British industry. London aims to leverage rising defence spending to expand domestic production capabilities.
The new policy, announced on 30 October, is scheduled to come into effect from April 2027. Its implementation will be overseen by a newly established body – the Offset Authority. The British government envisions the possibility of requiring foreign corporations to create jobs, invest in local plants, develop employee skills, and support domestic suppliers.
Up to 100 per cent of the contract value
According to the Reuters news agency, the value of the expected economic benefits could reach the full value of the order. This means that a contract worth £100 million could entail industrial obligations valued at up to £100 million.
However, the requirements are to be applied on a case-by-case basis rather than automatically to every contract exceeding the specified threshold. Since 2016, the United Kingdom has allocated over £35 billion to defence orders from foreign suppliers. According to the government, this accounted for approximately 11 per cent of the Ministry of Defence’s direct spending on industrial cooperation.
The new solution is intended to ensure that increasing military expenditure also translates into the growth of the British economy, employment, and industrial independence.
