Region ranks among top areas for MoD SME spending and a landmark Birmingham conference is set to capitalise
The government has set out its most ambitious package of support for small and medium-sized businesses in a generation.
The defence sector has been identified as a key driver of growth, with the West Midlands well placed to benefit.
The plan, set out in the government’s ‘Backing Your Business’ strategy, includes a £4 billion finance boost to improve access to capital for entrepreneurs, new legislation to tackle late payments.
It contains a commitment to increase total MoD spending with SMEs by £2.5 billion to reach £7.5 billion by May 2028.
Central to the defence element is the newly established Defence Office for Small Business Growth, created in January this year to give SMEs a single point of contact with the MoD and drive forward an ambitious SME action plan.
A £140 million boost for drone and counter-drone technology has also been announced, involving 20 British SMEs and 11 micro-businesses.
West Midlands defence is £1.7bn and counting
The West Midlands already has significant skin in the game. MoD spending in the region stands at £1.7 billion, the highest on record, supporting 7,900 jobs. The region ranks among the top three areas in England for the proportion of MoD direct expenditure with SMEs.
That momentum is set to be channelled into a major new event, the Defence Procurement Conference 2026, the West Midlands’ inaugural event dedicated solely to connecting UK SMEs with defence manufacturers, MoD representatives and senior policymakers.
Taking place at Millennium Point, Birmingham, on June 11 and 12, the two-day conference is expected to attract more than 1,000 delegates across six panels and feature more than 20 speakers. 
Organisers describe it as a “strategic procurement forum,” not a trade show, designed to give businesses practical routes into the UK defence procurement ecosystem, covering everything from bidding processes and compliance to direct networking with prime contractors and MoD supply chain leads. 
The event comes at a pivotal moment. Smaller suppliers already account for around £4.5 billion of MoD spend annually. Wth procurement reform reshaping how contracts are awarded, regional businesses across advanced manufacturing, technology, cyber and professional services are being urged to explore the opportunities opening up.
