The United Kingdom's defence industry is being reshaped by Russia's war against Ukraine, intensifying strategic competition and resulting in a pledge to raise defence spending to 2.5 % of GDP. The UK 2025 Strategic Defence Review places industry at the centre of national security, linking nuclear renewal, munitions expansion and digital integration to procurement reform, innovation funding and an 'always on' mobilisation base. It reinforces a North Atlantic Treaty Organization-first posture, prioritises autonomy and artificial intelligence, and seeks to align economic growth with credible combat readiness. Expert assessments diverge on implementation. Some regard the review as a credible blueprint for restoring military strength through clearer prioritisation, industrial reform and technological acceleration. Others question whether funding at 2.5 % of GDP will suffice without harder trade-offs, structural procurement change and measurable benchmarks for technological adoption. Concerns focus on delivery risk, adapting force structures to modern warfare, recruitment constraints and the challenge of translating innovation rhetoric into scalable production at pace. European Union-UK defence cooperation reflects both strategic convergence and institutional friction. Deep industrial interdependence coexists with caps on third-country participation, which limit UK access to EU programmes, and unresolved questions of sovereignty and financial contribution. The 19 May 2025 Security and Defence Partnership established a structured political framework for dialogue and cooperation on Ukraine, cyber issues, hybrid threats and industrial collaboration, yet negotiations on fuller participation in EU programmes have stalled. The European Parliament has welcomed closer engagement and framed the UK as a key strategic partner, while many experts argue that pragmatic inclusion, regulatory alignment and strengthened industrial integration are essential to a credible European defence architecture in an era of heightened geopolitical turmoil. Source : © European Union, 2026 - EP Read more