Brave new world: Trade, innovation and investment in defence, space and aerospace

20 March 2025

Defence is high on the global agenda, as dampening enthusiasm in the US to supporting European security places the onus on the continent to strengthen its own means of self-protection.

The UK government has already committed to increasing defence spending from 2.3% of GDP to 2.5% from April 2027, with an ambition to reach 3% by the next parliament. France has also committed to raising spending and other NATO countries are expected to follow suit.

Such moves open up commercial opportunities worth hundreds of billions of pounds for businesses, many of which will have to pivot from other sectors where their products and services can be repurposed for the military frontline.

With this in mind, Browne Jacobson brought together businesses, innovators, government and investors in the aerospace, space and defence sectors for an event on 7 March 2025 to explore the broad range of opportunities and challenges they face right now.

Held at the UK government’s Tŷ William Morgan building in Cardiff, and run in partnership with the Department for the Business and Trade, Ship Shape VC and Walmer Group, the event featured two incredibly insightful panels of industry leaders and experts.

Discussions highlighted the urgent need for enhanced collaboration and investment to safeguard and advance the UK's defence capabilities.

Chaired by Bianca Cefalo, Co-Founder and CEO of Space DOTS, this featured:

Dafydd Evans, Managing Director and Head of M&A at Kroll Securities
Lewis D'Ambra, Head of Government and Regulatory Affairs at Space Forge
Anis Mourad, Business Growth and Finance Partner at the Defence and Security Accelerator
Sami Moughrabie, Founder of Atmos Ventures
Marc Drew, Chief Operating Officer at Blue Abyss Global

Key takeaways included:

Agility is mission-critical – businesses that can pivot to adapt to government policy, geopolitics and market shifts will have the leading edge. SMEs are ideally placed to leverage these opportunities.
Private capital must step up but government needs to create the right conditions – improved regulation, infrastructure and tax incentives would help mobilise capital at scale.
The world is changing quickly – national security applications for dual-use technology will be crucial early customers and a pathway to commercial success.

Chaired by Jacqui Murray, Director of South Wales High Value Manufacturing Catapult, this featured:

David Woodbridge, SME Engagement Team Leader at the Department for Business and Trade in UK defence and security exports
Madeleine Pinder, Operations Director at Aerospace Wales Forum
Rhys Owen, Executive Director at General Dynamics
Philip Jones CEO at Business in Focus

Key takeaways included:

Primes are stepping up – some big players like General Dynamics actively support their supply chains to innovate but more need to follow suit.
Regulators must become enablers, not blockers, by driving a shift from “no, you can’t” to “here’s how you can”.
We need to shout about our successes – we have so many world-leading businesses on our doorstep. For example, 80% of all space-quality glass is manufactured in Wales.

Watch the video

In this report, Browne Jacobson’s lawyers will unpack some of the key themes from the event to explore in more detail with a series of articles.

We will consider some of the key learnings for businesses, investors and government to ensure they can all contribute to national security while driving UK innovation to reach new heights.