Kate Hollern – 2016 Parliamentary Question to the Ministry of Defence

The below Parliamentary question was asked by Kate Hollern on 2016-04-28.

To ask the Secretary of State for Defence, what proportion of defence expenditure was spent through small and medium-sized enterprises in (a) 2015-16, (b) 2014-15 and (c) 2013-14.

Mr Philip Dunne

The Ministry of Defence (MOD) publishes data on direct expenditure with Small and Medium-sized Enterprises (SMEs), excluding its trading funds, in the Finance & Economics Annual Bulletin: Trade, Industry & Contracts Statistics on the Gov.UK website. The final figures for financial years 2014-15 and 2013-14 are available at the link:

https://www.gov.uk/government/collections/defence-trade-and-industry-index. The final figures for financial year 2015-16 are not yet available.

The MOD does not hold data on expenditure with SMEs through the supply chain (indirect expenditure). The Cabinet Office has published indicative indirect expenditure with SMEs, collated from spend figures reported by suppliers, in their publication ‘Central Government direct and indirect expenditure with SMEs’. Figures for 2014-15 and 2013-14′ are available at the respective links:



Figures released by the Cabinet Office in this publication indicate that MOD direct and indirect spend with SMEs was 19.4% in each year. The figures for 2015-16 are not yet available.

The MOD has agreed a new target with the Cabinet Office of 25% procurement spend (both direct and indirect) with SMEs by 2020.