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UK defence spending boost to prioritise SMEs
The UK government has announced new measures to increase small business participation in defence contracts, including SME spending targets for the Ministry of Defence and the launch of a support hub to help firms access supply chain opportunities.
With defence spending set to rise to 2.5% of GDP by 2027, the initiative aims to channel more funds to small businesses, particularly outside London and the South East, where nearly 70% of defence expenditure already occurs. In 2023-24, only 4% of defence spending went to SMEs, prompting the government to act.
The support hub will assist SMEs in securing contracts, financing, and workforce training, ensuring that more companies can contribute to national security while benefiting from the investment. The government sees this as a way to strengthen the UK’s defence industry, accelerate technological advancements, and drive economic growth in small towns and regional economies.
In 2023-24, defence spending supported over 430,000 jobs across the UK, with significant increases in government investment in regions such as the East Midlands, Northern Ireland, Yorkshire, and the North West. The government expects these new measures to boost SME participation further and enhance Britain’s defence capabilities.
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East Midlands programme to drive digital health innovation
Health Innovation East Midlands and Health Innovation West Midlands have launched Grow Digital Health Midlands, a programme to support businesses in developing and scaling digital health solutions within the NHS.
Launched on 27 February 2025, the initiative expands on the former East Midlands Digital Health Accelerator, now covering 11 integrated care systems and a population of 11.8 million. To accelerate adoption, participants will receive business coaching, product development support, and direct access to NHS decision-makers.
The programme aligns with national healthcare priorities, with NHS and care system leaders selecting innovations that address regional challenges. The 2025 focus areas include improving NHS productivity and communication and reducing demand for hospital-based care.
Applications close on 24 March 2025, and potential applicants will be briefed on 4 March and 13 March 2025.