The UK will consider requiring selected overseas suppliers to deliver domestic economic benefits on defense and security contracts worth at least £50 million, linking procurement to jobs and industrial capacity.
The Ministry of Defence and HM Treasury announced the policy Oct. 30, with implementation planned for April 2027. The Ministry of Defence will assess qualifying contracts individually. A new Offset Authority will oversee agreements and monitor whether suppliers meet their commitments.
Eligible contributions may include hiring and training in Britain, adding or expanding UK production, supporting British suppliers, transferring technology or using more UK-made components. The government said requirements could be valued at up to the full contract amount.
The announcement cited past overseas procurement spending. Ministry of Defence figures show more than £35.2 billion went to defense contracts and services with overseas industry from 2016/17 through 2025/26, equal to 11% of the department’s direct expenditure with industry and commerce during those years.
