In an era of increasing geopolitical instability, how the UK sources, builds, and sustains its defence capabilities has never been more important. The conversation around sovereignty is growing louder—but in a globally interdependent sector like defence, what does “sovereign” really mean?

After 25 years supporting leadership hiring in the global defence industry — and as a military veteran — our Director of our Industry practice, Richard Coleman, believes the answer lies in pragmatic, not protectionist, thinking.Sovereignty Isn’t Isolation — It’s Influence

Let’s be candid: very few defence platforms are purely national anymore. One senior industry executive phrased it well:

“With a few exceptions, UK defence primes are owned by US or European companies who ultimately own the supply chain decisions.”

In many cases, the design authority lies abroad. This means if we want to shape the “what, where and how” of defence production, we must influence programmes at the concept stage — not simply react at the procurement phase.

True sovereignty, therefore, is not about isolationism. It’s about choice, influence, and control over key parts of the value chain: owning critical IP, securing domestic capability, and shaping strategic partnerships that reflect UK interests.GCAP: A Template for Collaborative Sovereignty

The Global Combat Air Programme (GCAP) offers a modern blueprint. A joint initiative between the UK, Italy, and Japan — with Leonardo as a core industrial partner — GCAP is set to deliver a sixth-generation fighter by 2035.

This programme is significant not only because it is not US-led, but because it demonstrates a partnership rooted in mutual industrial contribution and shared strategic priorities. It shows that sovereignty and collaboration are not mutually exclusive.

GCAP reflects what is possible when we focus on shared values over simple cost-sharing. It highlights the UK’s potential to lead high-value, globally relevant defence projects while maintaining strategic influence.Rebalancing Investment: The Mid-Tier Opportunity

UK-based mid-tier enterprises (MTEs), defined as companies with turnovers between £50m and £1bn, are often left in a procurement no-man’s land: too large to qualify for SME schemes, too small to lead major bids.

Yet these companies bring what the UK defence ecosystem urgently needs: cost-effective agility at scale. Despite this, around 40% of the UK’s £38bn defence budget goes to just 10 companies — half of which are foreign-owned. Nearly 50% flows to 20 primes, many with overseas headquarters.

Contrast this with peers such as the US, Israel, or France, where domestic industrial policy is far more protectionist. Gaining access to their defence markets is notably harder for UK firms than it is for foreign-owned primes accessing UK defence spend.

Senior voices from industry shared some of their recommendations:

• Allocating at least 35% of MOD defence spend (direct and subcontracted) to UK-based MTEs
• Providing targeted R&D tax credits to boost MTE-led innovation
• Expanding UKDSE export support to help MTEs grow internationally
• Requiring UK-based apprenticeships and STEM talent hiring in all major defence bids

This approach is not just industrial policy — it’s economic resilience. The case is clear: diversifying and strengthening the UK’s defence supplier base will reduce systemic risk.Measuring What Matters

As one senior leader told me:

“If it isn’t measured, it isn’t important.”

Tracking UK industrial content in major programmes—from business case approval through to delivery—should be a mandated requirement. Public reporting and performance tracking would bring both transparency and accountability.

This demands a whole-of-government approach: MOD, Treasury, DSIT, and BEIS must align behind a shared view of defence as an economic strategy, not just a cost centre. Incentivising long-term UK industrial participation should be built into the DNA of every programme.Political Leadership and Procurement Reform

The structure of defence procurement today makes building domestic content challenging. UK procurement agencies are still primarily evaluated on cost, time and performance. As long as this continues, any initiative that adds complexity—such as in-country build or domestic system integration—is seen as a risk to be avoided.

Instead, we must transform these agencies into champions of industrial resilience and strategic outcomes.

Government must:

1. Mandate formal reporting of UK content in all procurement cases
2. Tie VAT generation and economic benefit into procurement evaluations
3. Support offset agreements with allies through early-stage engagement, particularly in US-led Foreign Military Sales (FMS) frameworks
4. Create a framework for UK primes to be assessed based on their delivery of UK content and domestic supply chain strategies

The leadership must come from the top. Without a clear political directive and interdepartmental alignment, initiatives around domestic supply chain growth will remain secondary considerations.Iterative benefits of integrating the proposed SDR changes to defence industrial strategy.Talent Is Strategy

As a recruiter, I see daily how critical leadership is to defence transformation. The best organisations are those with:

• Commercial leaders who understand risk-sharing and collaboration
• Culturally agile leaders who can bridge national and multinational priorities
• Procurement leaders who act as industrial champions, not just cost controllers

The best strategy will falter without the right people. Sovereign capability demands a pipeline of leaders who understand how to operate at the intersection of national interest, industrial agility and multinational collaboration.

From commercial leaders who can share risk and foster value-creating partnerships, to culturally fluent procurement and programme executives who act as strategic champions rather than compliance gatekeepers—the UK must invest in people as much as platforms.

In the context of bringing new, home-grown talent into the defence sector and safeguarding our national capability for the future, one Managing Director proposed that all companies bidding for UK defence contracts should be required to have a minimum of 2% of their UK headcount made up of apprentices and STEM students. This could be capped at 20 individuals per year to ensure proportionality.

Such a measure would not only support the development of the UK’s future workforce but would also contribute to building a more resilient and self-sustaining defence industrial base. By nurturing young talent and investing in the next generation of engineers, technologists, and specialists, the sector can strengthen its long-term capability, reduce reliance on overseas skills, and ensure a steady pipeline of qualified professionals equipped to meet the evolving demands of national defence and security.A Practical Strategy for UK Industrial Self-Reliance

To move from rhetoric to results, a UK-centric supply chain strategy must:

1. Map and assess UK capabilities across the full product breakdown structure.
2. Classify work packages by complexity, cost and strategic importance.
3. Competitively tender work domestically with a clear strategy for capability growth and risk management.
4. Provide targeted support for SMEs in capability development, bidding, and programme delivery.
5. Institutionalise performance feedback and build a track record to support future procurement decisions.

A resilient supply chain must also recognise that success is not just measured in deliverables—but in what is left behind: skills, knowledge, jobs, and economic growth.Conclusion: Pragmatism Over Protectionism

The UK cannot and should not aim to build every platform alone. But we can and must ensure we are at the heart of high-value defence ecosystems—from design and development through to integration and export.

This is what sovereignty looks like in a modern, interconnected world: strategic partnerships built on shared value, empowered by resilient mid-tier suppliers, measured by outcomes that matter, and delivered by visionary leaders.

We already have the tools. What we need is the political will, procurement transformation and industrial alignment to use them.

With sincere thanks to the senior industry leaders who generously shared their insights, experience and ideas in support of this article.