Over £30bn of UK defence contracts flow to foreign-controlled firms with UK ties

Data released under freedom-of-information legislation reveal that, since 2021, £31.7 billion in UK defence contracts has been awarded to foreign-controlled companies that maintain a UK subsidiary or office, while a further £3.5 billion went to firms with no UK footprint at all. Under current Ministry of Defence criteria, any firm with a UK entity qualifies as British, a loophole that opponents label "Brit-washing". Figures have drawn fire from Labour members such as James Cartlidge and former defence secretary John Healey, who say the definition obscures where public funds end up.

High-profile cases include a £1 billion helicopter deal to Italian-owned Leonardo, whose UK arm reported over £200 million of profits sent to its Italian parent. Experts like Philip Ingram and Andrew Fox urge tighter rules and greater on-shoring of critical capabilities, while the MoD maintains that 85 percent of defence spending remains in the UK and supports jobs and skills.