Category: Press Releases

The press release issued by the Ministry of Defence on 14 May 2026.

The Government is cracking down on waste and delays as defence companies are to be incentivised to deliver equipment on time and on budget with new reforms to Single Source Contract Regulations.

• New rules, announced today, mean suppliers can be paid more for completing projects to time and budget, while those who fail to deliver will receive less
• Incentive payments of up to 10% can reward suppliers who get equipment to our Armed Forces faster and more efficiently.
• Smaller and innovative businesses will find it easier to work with defence, bringing new ideas and technologies to the frontline sooner.

Defence companies will be incentivised to provide equipment to the Armed Forces faster and more efficiently but could earn less if they fail to deliver under a government crackdown on waste and delays.

Defence procurement will be sped up under the changes being introduced by Ministers in Parliament today, which will see the amount of profit companies can make from a contract being tied to delivering on time.

Through changes to the Single Source Contract Regulations (SSCRs), suppliers who deliver at pace, improve productivity and take on more risk will earn more, while those who do not could make less.

Every pound saved through better supplier performance is a pound that can be reinvested in equipping the Armed Forces.

Minister for Defence Procurement and Industry, Luke Pollard MP, said: 

To deliver the warfighting readiness our country requires, we need procurement that delivers on time and on budget. We inherited a programme where 96% of our major defence projects had issues with delivery or cost. That is not acceptable.

That’s why suppliers who deliver better outcomes and take on appropriate risk will be rewarded, but those who do not, will make less profit.

That is how we make sure we get more equipment to the front line faster.

These reforms deliver on commitments made in both the Strategic Defence Review (SDR) and the Defence Industrial Strategy (DIS), which said that with the promise to invest more comes a responsibility to invest better.

The reforms introduce four key changes:

• Maximum incentive payments for suppliers will increase from 2% to 10% of costs, but only when suppliers hit agreed performance targets, giving the MOD the ability to reward suppliers who get equipment into service faster.
• Profit floors on lower-risk contracts will be reduced, so suppliers could earn less unless they improve performance. The new rules will allow higher-risk contracts to attract stronger returns – motivating suppliers to take on the risk-bearing work the DIS specifically committed to encouraging.
• A new Innovation Uplift will reward suppliers, particularly smaller businesses and new entrants to defence, who invest their own money in developing new products without a guaranteed government contract.
• The threshold at which contracts come under the regulations will rise from £5 million to £25 million, meaning nearly all small and medium-sized enterprises will no longer have to comply with the mandatory reporting regulations, while keeping 97% of single-source contracting value within the model.

Today, the Government is laying a Statutory Instrument to increase available incentive payments. A further Statutory Instrument, covering the profit floor changes, the Innovation Uplift and the increased threshold, will be introduced prior to the Summer recess. We will be consulting on these changes in the coming weeks.

Rupert Pearce, National Armaments Director, said: 

The NAD Group is committed to driving greater performance across the defence enterprise. These changes give us better tools to reward innovation, incentivise delivery, and ensure that public money is spent where it generates real value. We will work closely with industry and the Single Source Regulations Office to implement them effectively.

The reforms have been developed after extensive discussions with industry and the Single Source Regulations Office and support the National Armaments Director (NAD) Group’s wider mission to accelerate procurement and ensure critical capabilities reach UK warfighters faster. 

The press release issued by the Ministry of Defence on 14 May 2026.

Funding of up to £1m available for existing veterans’ hubs across the UK to join VALOUR – the Ministry of Defence’s new support system.

An estimated 100,000 veterans in London and the East of England stand to benefit from VALOUR,  a new network of recognised centres that will coordinate access to support across health, housing, employment and more. 

The Office for Veterans’ Affairs (OVA) in the Ministry of Defence has already provided £13m of funding to 14 organisations to join the UK-wide VALOUR system, with the OVA inviting organisations in London and the East of England in particular to apply for funding. 

Government ministers are calling on existing centres that support veterans, voluntary organisations and local councils to apply this spring for funding between £200k and £1m to join the system. 

Minister for Veterans and People Louise Sandher-Jones said: 

London has a rich military heritage as the strategic nerve centre of defence, home to the nation’s most famous veterans at the Tower of London and Royal Hospital Chelsea, countless ceremonial and reservist units, and the headquarters of numerous veteran charities.

The East of England also has a rich military heritage, with its airfields playing a crucial role in campaigns during the Second World War. Today, the region is the home of F-35 jets, key intelligence and surveillance facilities.

It is only right that veterans in these areas have a physical point of contact where they can be assisted to access the support that’s right for them.

Alongside VALOUR-recognised centres, the £50m VALOUR system will include a headquarters in the OVA, field officers to evolve local networks, increased capacity for MOD Veterans Services, and an online support platform. The system will work together to share data and form better connections between national government and councils, voluntary organisations, and service providers. 

The UK Government is investing record levels in support for our veterans, and is renewing the nation’s commitment to those who serve with a 10-year Veterans Strategy, which aims to celebrate and support veterans, and help them to contribute to their local communities and the economy.

The press release issued by the Ministry of Defence on 14 May 2026.

UK Defence Minister Lord Coaker visited Montenegro, Serbia, and Kosovo strengthening NATO partnerships and Euro-Atlantic security across the Western Balkans.

• UK-Türkiye industrial relationship strengthened following the landmark £8 billion Typhoon export agreement.
• Visit underscores importance of alliances and partnerships in this new era for defence.

Defence Minister Lord Coaker has completed a four-country tour reaffirming Britain’s commitment to Euro-Atlantic security, defence partnerships, and regional stability.

Earlier this week in Podgorica, Lord Coaker met with Prime Minister Spajić and Defence Minister Krapović. Discussions in Montenegro covered NATO, defence modernisation, and Ukraine support. 2026 is the 20th anniversary of Montenegro’s independence and the visit provided an opportunity to both expand our partnership and mark this important milestone for our NATO Ally.

Visiting Serbia, Lord Coaker laid a wreath at the Commonwealth War Cemetery, honouring the shared sacrifice that underpins the UK’s enduring commitment to the region. He met Assistant Minister for Defence, Nenad Miloradović, Assistant Minister for Defence Policy, Predrag Bandić, and Chief of General Staff General Mojsilović. 

In Kosovo, Lord Coaker visited UK personnel serving with NATO’s Kosovo Force (KFOR) at Camp Novo Selo. KFOR is an international peacekeeping force focused on maintaing security and stability for all peoples of Kosovo.

The Minister also met Kosovo’s Minister for Defence to discuss support for the Kosovo Security Force’s and their alignmemt with NATO standards, underlining the UK’s long-term commitment to peace and security in the region.

The tour concluded in Istanbul at SAHA 2026, Türkiye’s premier defence and aerospace exhibition. Lord Coaker held senior meetings with Turkish political, military, and industry leaders.

Building on the recent landmark £8 billion Typhoon agreement, Lord Coaker’s visit is part of an enduring and strengthening UK-Türkiye defence partnership.

Defence Minister Lord Coaker said:

Our partnerships are our strategic strength and my meetings with friends and allies this week show the importance of deepening defence cooperation, and standing together as increasing threats challenge our security and stability.

That spirit of stronger cooperation extends to our defence industries, including our Typhoon exports to Turkey. Working with trusted allies boosts British businesses, drives innovation and supports highly skilled jobs at home.

By investing in these partnerships abroad, we strengthen our own capabilities and security at home.

Lord Coaker engaged with some of the UK’s defence businesses including BAE Systems, Airbus, and Rolls-Royce.

The visit supports the build up to the NATO Summit in Ankara in July.

The press release issued by the Ministry of Defence on 13 May 2026.

British soldiers will be equipped with modern guns capable of firing eight rounds per minute at targets up to 70km away – delivering the long-term close support artillery solution for the British Army, a landmark moment in UK defence modernisation.

• Procurement of 72 Remote Controlled Howitzers (RCH 155) for the British Army will deliver a step change in artillery capability.
• The UK’s £1 billion investment delivers on the UK-Germany Trinity House Agreement, and supports at least 500 British jobs, including at Rheinmetall’s Telford facility and KNDS Stockport.
• Rheinmetall set to use British steel through Sheffield Forgemasters, strengthening the UK’s defence industrial base and supporting the UK Steel Strategy.  

72 Remote Controlled Howitzers (RCH 155) will be procured under a nearly £1 billion contract, which includes initial training and in-service support, awarded by the Organisation for Joint Armament Cooperation (OCCAR) on behalf of the British Army to ARTEC GmbH, a joint venture between KNDS and Rheinmetall.

The weapon systems – the barrel, breech, recoil system and trunnions – will be manufactured at Rheinmetall’s large-calibre production Telford facility. Rheinmetall is set to use British steel supplied by Sheffield Forgemasters, supporting the UK Steel Strategy which recognises steel is fundamental to the UK’s industry and national resilience. 

The BOXER drive module – chassis, engine, drive train – that the weapon system sits on will be manufactured by KNDS UK in Stockport, sustaining critical armoured steel welding in Britain as well as supporting 100 skilled jobs in Stockport. Together, the programme is expected to support the creation of 100 new skilled jobs at Rheinmetall’s Telford facility, support 100 jobs at KNDS Stockport and back 300 jobs in the wider UK supply chain.

The programme delivers on the Trinity House Agreement by strengthening UK-German collaboration and deepening interoperability between Allied forces.  

Defence Secretary John Healey MP said:

This major investment is defence delivering for the battlefield and for Britain’s economy. By securing next-generation artillery with Germany, not only are we rearming to strengthen NATO against growing Russian aggression but also creating highly skilled jobs here in Britain.  

This is what we mean when we say defence is an engine for growth – investment in our security that powers new jobs across the country.

German Federal Minister of Defence, Boris Pistorius, said:

The RCH 155 will significantly enhance the artillery’s firepower, safety and flexibility. It is a vital element of modern artillery support. Together with the United Kingdom, we are demonstrating that we take interoperability within NATO seriously and are putting it into practice.

At the same time, we are underlining the close defence cooperation between Germany and the UK. My British counterpart John Healey and I are keeping our word and are implementing the Trinity House Arrangement step by step. Joint exercises and training will bring our armed forces even closer together. This will deepen military cooperation in the long term and improve our operational readiness – for greater security in Europe.

RCH 155 is mounted on a BOXER chassis and can redeploy at speeds of up to 100km/h, making it harder for adversaries to target. Advanced automation of the turret allows the platform to be operated at the push of a button from the crew compartment by just two soldiers. 

First deliveries of the RCH 155 vehicles are expected in 2028 to achieve a minimal deployable capability within this decade. This contract follows the £52 million Early Capability Demonstrator contract signed in December 2025 and a £53 million Long Lead Item procurement contract earlier this year, facilitating Rheinmetall’s large calibre gun manufacturing facility in Telford. 

Rheinmetall aims to use British steel supplied by Sheffield Forgemasters, which manufactures specialist steel parts used in critical defence programmes and employs 720 skilled staff. The government invested over £420 million of additional funding in Sheffield Forgemasters last year, bolstering sovereign steelmaking capability for defence, including gun barrels and nuclear submarines. 

The RCH 155 replaces the AS90 artillery systems granted in kind to Ukraine in 2023. The Archer artillery system currently serves as an interim capability and will continue to do so until the RCH 155 enters service.  

The RCH 155 procurement between the UK and Germany builds on the Trinity House Agreement signed in October 2024. This commitment to improve and enhance bilateral defence cooperation between both nations will exploit the combined capabilities of each nation’s test and evaluation centres, to enable faster delivery at less cost. It will deepen interoperability between Allied forces and directly strengthen NATO’s collective defence on the eastern flank. It also anchors significant industrial benefit in Britain, supporting the skilled workers who will build and maintain them.  

The investment also supports the Strategic Defence Review’s ambition to make defence an engine for growth and the Army’s goal to deliver tenfold greater lethality within the next decade.   

Deputy Chief of the General Staff, Lt Gen Simon Hamilton CBE said:  

Britain answered the call for aid by providing artillery systems to Ukraine at the outbreak of the war. We knew the risk – the gap in our warfighting capability – that this would present. The success of bringing the RCH 155 onto contract to develop our 155mm Close Support Artillery requirement, in collaboration with Germany, marks the first significant milestone in replenishing this capability. We are grateful to the National Armaments Director, our industry partners and our own programme teams for the fantastic work which they have done to bring this to fruition and look forward to our continued work with our German allies.