On 9th June 2025, CMS Strategic attended the launch of a report that could reshape the financial outlook for UK-based defence SMEs and break down some of the barriers the sector faces in accessing funding. “Rewiring British Defence Financing”, by Labour MPs Luke Charters (York Outer) and Alex Baker (Aldershot), sets out the case for transforming how Britain funds its defence capabilities. Minister for Veterans, Al Carns, was in attendance, alongside a packed-out bench of Labour MPs and defence and finance industry experts keen to hear about the proposals and the viability of the reforms suggested. CMS Strategic was pleased to support the team in getting the report to print. 

Charters and Baker argue that traditional defence procurement models are too slow and fiscally constrained to meet the demands of modern warfare and geopolitical instability. With Russia ramping up its military production and the US demanding more from NATO partners, the UK must work to ensure its defence industrial base is adequately funded and future-proofed. 

The report highlights the untapped potential of the UK’s financial sector as a global hub for defence investment. Charters and Baker outline the ‘Six Cs’, cross-cutting challenges for defence SMEs. These are issues with capital, credit, cashflow, contracts and compliance, and the need for consensus, from tackling political violence to rethinking pension scheme investments in favour of defence financing. Charters and Baker emphasised the importance of aligning Environmental, Social, and Governance (ESG) frameworks with national security priorities and called for clearer guidance to ensure that defence-related investments are not unfairly penalised under current ESG interpretations, which can deter much-needed capital from flowing into the sector.  

The launch was met with strong support from industry stakeholders, who praised the report’s pragmatic approach and its emphasis on long-term resilience. There was also a clear sense of urgency: with global threats evolving rapidly, the time for incremental change has passed. The panel included Rob Taylor of 4GD, who spoke about the challenges facing him as the owner of a defence SME – and that this report has given him renewed faith to stay and invest here in the UK.  

Also speaking was Rob Murray, who spoke about the foundation of the report – a call for the creation of the new Defence, Security and Resilience (DSR) Bank – a supranational financial institution designed to mobilise private capital into allied defence production and supply chain resilience. With Defence Secretary John Healey hinting at the UK’s potential involvement with a cross-European proposal, this looks to be a positive step forward for the industry. 

As the UK looks to redefine its role on the world stage, Rewiring British Defence Financing offers a bold and timely blueprint. It challenges outdated assumptions, proposes innovative solutions, and places Britain at the forefront of a new financial architecture for defence. Whether the government will act on these recommendations remains to be seen, but the conversation has undeniably begun, especially with Ministerial presence in the room for the launch. 

The full report is available to download here. 

CMS Strategic specialises in defence communications and government relations, helping clients operating in the cybersecurity, aerospace, maritime, land, and defence technology fields stay ahead. CMS Strategic supports defence companies of all sizes in navigating policy changes, engaging with key stakeholders, and aligning their messaging with evolving government priorities. By continuously monitoring the defence landscape, CMS Strategic ensures its clients stay informed, proactive, and strategically positioned in a fast-changing industry.