Waiting for the DIP: major primes tell Parliament they are ready to hire and invest but cannot act without the plan

Senior leaders from BAE Systems, Babcock, QinetiQ and Leonardo appeared before the Scottish Affairs Committee on Wednesday 22 April and delivered a consistent message: the continued delay to the Defence Investment Plan (DIP) — the document that will set out how the government intends to allocate its significantly increased defence budget — is causing investment, recruitment and forward planning decisions to stall across the sector. All four companies described an industry that understands more money is coming but cannot commit or scale at full pace until it knows where that money will go.

The DIP has been delayed several times since the Strategic Defence Review (SDR) was published in June 2025; there is still no confirmed publication date. For companies building bids and capability plans, the absence of the DIP is a material constraint. Capture teams and growth functions in particular are operating with incomplete intelligence on programme priorities, funding timelines and the scale of work likely to flow through the segmented procurement approach the SDR introduced. The committee session is one of the strongest public signals yet that industry patience is wearing thin — and that companies willing to commit early capacity are at a strategic disadvantage relative to those waiting for certainty.

Northern Ireland Defence Growth Deal opens a new route into the supply chain for SMEs and start-ups — The government launched a £50 million Defence Growth Deal for Northern Ireland on 22 April 2026, completing the fifth and final regional package under the Defence Industrial Strategy (DIS). Defence Minister Luke Pollard and Northern Ireland Office Minister Matthew Patrick announced the deal at Belfast Met College. It creates a targeted programme to make it easier for small and medium-sized enterprises (SMEs) and start-ups to enter the defence supply chain, backed by a new Secure Innovation Hub offering secure research and development facilities to allow smaller firms to collaborate alongside prime contractors. An accompanying skills initiative will work with colleges, universities and industry to develop defence-relevant engineering and technology training. Northern Ireland already attracts more than £271 million in annual MOD procurement spending with industry. For companies operating in advanced engineering, software, materials and test services, early engagement with the deal's programme office and the forthcoming Hub is the priority.

Government launches sprint to attract private capital into defence — and opens the MOD's doors to City expertise — Also on 22 April, the Defence Secretary and Chancellor met leaders from UK banking, venture capital and strategic finance to explore how private investment could be leveraged to accelerate defence readiness. The government announced a new MOD-led sprint to define where and how private capital could fund innovation and capability growth. The Defence Investors' Advisory Group (DIAG) has been expanded and placed on a permanent footing. A new Defence Finance Zig-Zag secondment programme will embed industry finance specialists inside the MOD. For companies with financial backers with appetite for defence exposure, the formalisation of the DIAG and the secondment route are worth tracking as access points.

Scottish Government policies are creating a two-tier environment for defence companies north of the border — The same Scottish Affairs Committee session on 22 April heard evidence from industry figures — including Leonardo's UK representative — that defence companies operating in Scotland face a set of constraints that do not exist in England. These include a Research and Development funding freeze, an inability for employers to access the apprenticeship levy directly (the relevant Barnett Consequentials are controlled by the Scottish Government and not routinely passed back to the defence sector), and obstacles to advertising in public spaces. The Scottish Government has also not responded to the UK Government's offer to match-fund a second Defence Technical Excellence College in Scotland, leaving that expansion stalled. Companies with Scottish operations should factor these structural constraints into workforce and investment planning.

HII wins Royal Navy unmanned underwater vehicle support contract — The MOD awarded a £3 million contract to HII Unmanned Systems Inc for in-service support of the Royal Navy's REMUS 100 and REMUS 300 unmanned underwater vehicle (UUV) fleets. The REMUS 100 and REMUS 300 are man-portable autonomous underwater vehicles used for mine countermeasures and intelligence-gathering tasks. The award, reported 25 April, provides a potential in-country delivery and support opportunity for UK-based companies as the Royal Navy's underwater autonomy programme continues to develop.

Babcock warns of a pipeline gap at Rosyth once the Type 31 programme completes — Babcock told the Scottish Affairs Committee on 22 April that no UK programme is currently confirmed to follow the Type 31 frigate build at its Rosyth facility, raising concerns about long-term workload at one of Scotland's most significant naval shipbuilding sites. The company stated it is actively pursuing export orders to sustain its workforce in the interim and called on government to provide long-term contract certainty. For the wider naval supply chain, the gap represents both a risk — if programme successors do not flow through Rosyth — and a potential opportunity, if export programmes create new routes to market.

RAF aircraft surface finishing: ~£95m over a decade, pre-selection questionnaire closes 15 May — The MOD has launched a procurement for a ten-year contract to provide surface finishing and painting services for all Royal Air Force (RAF) fixed and rotary wing aircraft at stations in the UK and at UK Strategic Command (STRATCOM) permanent joint operating bases overseas. The estimated contract value is approximately £95 million excluding VAT, and covers corrosion control, low-observable finish maintenance, and airfield support equipment. The pre-selection questionnaire (PSQ) closes 15 May 2026; shortlisted suppliers will be invited to a subsequent tender stage that may include negotiation. An award decision is expected October 2026, with the contract commencing April 2027.

JEF Chiefs of Navy meet in London as undersea infrastructure security moves up the agenda — First Sea Lord General Sir Gwyn Jenkins hosted the first Joint Expeditionary Force Chiefs of Navy (JEF CHoNS) conference in Whitehall on 23 April, bringing together naval chiefs from the ten-nation JEF to address growing Russian maritime aggression and strengthen deterrence across the High North, North Atlantic and Baltic. The meeting went beyond standard coalition coordination: Jenkins set out an ambition for the JEF to move from irregular joint activity towards a permanent joint force built around interchangeable equipment, shared digital networks, common logistics and aligned stockpiles. The Royal Navy's export of the Type 26 frigate to Norway and Canada was cited as a concrete step towards a family of allied fleets built around a common British design. For UK prime and Tier 2 companies, the direction of travel — greater platform commonality, deeper inter-navy integration, and an expanding Type 26 export footprint — points to a widening international supply chain pipeline anchored on British design.

HMS Prince of Wales sails as UK fields two carriers at sea for first time in over a year — HMS Prince of Wales sailed from Portsmouth on 25 April to begin preparations for the deployment of the UK Carrier Strike Group (CSG) to the High North and North Atlantic later this year, under NATO's Arctic Sentry mission. The carrier's departure coincides with HMS Queen Elizabeth completing a major maintenance period at Babcock's Rosyth dockyard, meaning the UK has both of its Queen Elizabeth-class carriers at sea simultaneously for the first time in more than twelve months.