CBI establishes taskforce to ensure defence spending drives economic growth - April 2025

In response to a changing global context, the Confederation of British Industry (CBI), with knowledge partners Oliver Wyman, and with support from the Chancellor of the Exchequer, Rachel Reeves, and Secretary of State for Defence, John Healey, is establishing a Defence & Economic Growth Taskforce to identify opportunities to drive UK growth and productivity through investments in UK Defence capability and production.

The UK government has positioned the Defence sector as a key engine of economic growth and has committed to spend 2.5% of GDP on Defence by April 2027. With CEO-level representation from UK banks, investors and across the Defence industry this taskforce will act fast to convene and share expert insights, producing specific and implementable recommendations for the government within 12 weeks. The opportunities - presented via recognising and engaging with the Defence sector as an engine of growth - are pivotal to ensuring the UK's national and economic resilience in turbulent times and can make an integral contribution to the government's Growth Mission.

The Taskforce will be headed up by Rain Newton-Smith, CEO, CBI and will be jointly chaired by the Chancellor and Defence Secretary. The secretariat will be led by the CBI with support from knowledge partners Oliver Wyman, a leader at the intersection of financial services and strategic public sector advisory, PA Consulting, a management and technology consultancy, and ADS the UK trade association advancing leadership in aerospace, defence, security and space.

The following business leaders have already been confirmed to serve on the taskforce:

Aimie Stone, Chief Economist, ADS Group

Kata Escott, UK Managing Director and Country Head, Airbus Defence and Space

Marc Wietfeld, CEO, ARX Robotics

David Lockwood, CEO, Babcock International

Charles Woodburn, CEO, BAE Systems

Rain Newton-Smith, CEO, Confederation of British Industry

Ned Baker, UK Managing Director, Helsing

Kerry Baldwin, Managing Partner, IQ Capital

Rob Hales, Managing Director, JFD Global

Andrea Rossi, CEO, M&G plc

Paul Thwaite, Group CEO, NatWest Group

Lisa Quest, Managing Partner UK & Ireland, Oliver Wyman

Pete Lovell, Global Head of Defence and Security, PA Consulting

Andy Briggs, Chief Executive Officer, Phoenix Group

Dom Cartwright, CEO, Survitec

Ricardo Mendes, CEO, Tekever

Dave Palmer, General Partner, Ten Eleven

The Defence & Economic Growth Taskforce will build on existing work to date, and align with existing longer-term initiatives by design, such as the Defence Industrial Joint Council (DIJC), ensuring its efforts are complementary and additive. With its focus on how to ensure that further investment in defence drives economic growth the taskforce will address:

The role the defence industry can play in attracting and developing accelerated capital flows to drive growth across the UK, through national supply chains, dual use platforms and fostering innovation.

Where and how institutional, private and public capital can play a greater role in delivering outcomes particularly with key stakeholders such as ARIA, NWF, BBB and DIANA.

How government can take a systemic approach, including evolving buying behaviour and procurement processes, to ensure that innovation is catalysed in the defence industry, time to market is accelerated, supply chains increase in resilience and financial firms have the right conditions to mobilise private capital at scale.

Rain Newton-Smith, CEO, CBI:

"In these turbulent times, the government is right to position the defence sector as a key engine of growth pivotal to ensuring our national and economic resilience.

"Increases in defence spending bring benefits to UK investors, manufacturers and the supply chains that are rooted in our regional communities. While the spillover effect from investment in rapid technological advancements will drive innovation that can deliver huge benefits back into the British economy

"I am delighted to be involved in this taskforce and its work to ensure that the government's commitment to increased defence spend translates into an opportunity to not only grow the UK's defence and security capability, but to also drive sustainable economic growth across the country."

Lisa Quest, Managing Partner UK and Ireland, Oliver Wyman:

"The UK Defence Industry will play a critical role in our society, protecting our values and promoting peace.

"Creating the conditions for accelerated capital flows to defence and dual-use technologies will drive growth across national supply chains and foster innovation across the economy.

"The co-creation of recommendations to mobilise the right combination of public, private and institutional capital will be key to unlocking wider security, resilience and growth objectives."

Kata Escott, Managing Director and Head of Country, Airbus Defence & Space UK:

"I'm honoured to join this important initiative, which recognises the critical role of the defence industry in boosting UK economic growth and strengthening our sovereign capabilities. As one of the UK and Europe's leading defence and aerospace manufacturers, Airbus supports the opportunity this work presents to forge a closer partnership between government, industry and investors. A robust defence industrial base is fundamental to our national security and long-term prosperity."

Marc Wietfeld, CEO, ARX Robotics:

"The UK is a cornerstone of European defence capabilities and a powerhouse of innovation. Strengthening British industry through advanced robotics and AI isn't just good economics-it's a strategic imperative. I'm proud to join this Task Force on behalf of ARX Robotics, to help drive resilient growth and ensure the UK remains at the forefront of defence technology and manufacturing."

David Lockwood, CEO, Babcock:

"Defence is a major driver of UK growth, but to fully realise its potential we need increased collaboration between Government, Industry and Investors. This is a pivotal time for defence, so I'm delighted to join this Taskforce as we seek to achieve that."

Charles Woodburn, Chief Executive, BAE Systems:

"The Government's commitment to increase defence spending is vital to help keep our nation safe in these uncertain times. By working together across government, industry and the financial sector, we can ensure that this investment not only delivers critical capabilities our armed forces need, but also supports economic growth through national supply chains, technology development and highly skilled jobs in communities right across the country."

Ned Baker, UK Managing Director, Helsing:

"Helsing is investing £350m into the UK to modernise our Armed Forces and help grow the economy. The impact of such investments are multiplied when industry and government work together in partnership. Helsing is proud to join the taskforce and committed to delivering cutting edge Artificial Intelligence for our national security and prosperity."

Kerry Baldwin, Managing Partner, IQ Capital:

"In these increasingly complex times, the work of this vital taskforce will be essential to placing defence at the heart of the industrial strategy and to deliver growth across defence strongholds such as the Southwest. Identifying and prioritising solutions to procurement to enable adoption of innovative technologies will enable greater private capital to flow to power a modern defence force. Increasingly innovators are turning to creating solutions for defence, and the recent government announcements will encourage both innovators and investors and ensure that the UK can build upon its existing strengths and become a defence industry superpower."

Rob Hales, Managing Director of JFD Global:

"We are honoured to support the Taskforce at a critical moment for UK defence and the defence industry. This represents a generational opportunity to deliver defence advantage to the UK and its international partners, while creating high-quality jobs through growth. Our engineering, manufacturing and services hubs in Aberdeen, Glasgow and Portsmouth deliver mission-critical equipment and services to the UK armed forces, and act as centres of excellence driving our international growth. We are looking forward to working with the Taskforce to realise this potential."

Peter Lovell, Global Head of Defence and Security at PA Consulting:

"I'm delighted to join the Defence & Economic Growth Taskforce to help the Ministry of Defence and HM Treasury unlock the levers of government needed to match UK defence capability to evolving threats. To succeed, the taskforce will require a bold approach to encouraging new sources of investment and reframing public-private cooperation. By investing in defence, public and private funders will supercharge the sector into an engine of growth. And the rewards will be much broader than defence and security, unlocking social and economic prosperity to ensure a secure future for the UK.

"To build the UK's defence industrial base, we must recognise that different segments require tailored approaches and financial options. That's how we'll achieve the long term, sustainable growth and security we are all working for."

Ricardo Mendes, CEO, TEKEVER:

"At TEKEVER, we believe that strengthening national defence and fostering economic growth go hand in hand. The creation of this Taskforce represents a vital opportunity to bring together government, industry, and finance to accelerate innovation, scale investment, and build a more resilient and competitive defence ecosystem in the UK. We're proud to contribute to shaping a forward-looking strategy that delivers both security and prosperity."