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UK Ministry of Defence to give 22 British SMEs up to £300,000 for munitions proposals

Fiona AlstonbyFiona Alston
July 29, 2026
in News, UK Defence
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The UK Ministry of Defence (MOD) is looking for at least six new munitions and energetics factories, by way of a feasibility study that will see 22 British SMEs receive up to £300,000 for their proposal.

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The contracts are open to businesses in England, Scotland and Wales and it is thought that 1000 high-skilled jobs will be created. The plan is to select at least six of the the top proposals and those companies will be offered Front End Engineering Design (FEED) contracts worth up to £5 million each.

The announcement of such small but quantitative funds comes at quite an opportune time for the MOD given the latest criticism that its pockets have to be prised open. With £11.1 billion being allocated through the Defence Investment Plan for munitions and weapons we might consider this move ‘a start’.

It is hoped that the bid for new munitions and energetics, such as explosives, propellants and pyrotechnics will inject some life into  industrial communities with ‘high-skilled manufacturing’. These components are used in weapons including small arms, artillery, mortars, countermeasures, bombs and missiles.

Minister for Defence Readiness and Industry Luke Pollard MP said by creating these factories Britain is preparing for the future and restoring the declining sovereign manufacturing capabilities.

“By investing across England, Scotland and Wales, we are strengthening our warfighting readiness and security of supply, while creating at least 1,000 high-skilled jobs in the future in communities that have long been the backbone of British industry and will be again,” said Pollard.

September 2026 should see the studies completed and a start to the construction of the new energetics munitions factories is planned for the end of 2026.

The Government already pinpointed at least 13 potential sites for such activities. They include:

  • Monmouthshire
  • Cumbria
  • Dumfries and Galloway
  • North Ayrshire
  • Shropshire
  • Cheshire
  • Derbyshire
  • Essex
  • Worcestershire
  • Hampshire
  • Pembrokeshire
  • Falkirk
Tags: defence investment planindustrial technologyManufacturingMoD
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Agon emerges from stealth with $30M to build AI training models for defence

Fiona Alston

Fiona Alston

Fiona Alston is a defence tech, innovation and business journalist based in Estonia. With over a decade of experience covering tech, business and sustainability for Irish and European publications, she has a knack for bringing interesting and technical stories to an everyday audience.

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