Most 'British' defence companies are actually multinationals, claim critics

INDUSTRY chiefs claim ministers are overstating how much of the military budget supports homegrown industry.

- BY CONOR WILSON Defence Reporter

John Healey, second right, with Sir Keir Starmer on carrier HMS Prince of Wales

(LOUISA GOULIAMAKI/AFP VIA GETTY IMAGES)

John Healey has previously argued that 84% of contracts signed since July 2024 have gone to "British-based firms".

But analysis by the Daily Express found the Defence Secretary's claim holds true only if any company with a presence in the UK, however limited, is classified as "British-based".

Under a stricter definition, requiring a company to be headquartered in the UK and to pay most or all of its taxes here, that falls to just 36%.

Rob Taylor, 38, a former Royal Marine and founder of military tech firm 4GD, said Britain is steadily losing its "core capability" as more defence spending is outsourced abroad, warning of the risk posed to national security.

He told the Sunday Express: "Foreign-owned defence companies turn up with a Union Flag on the brochure and a registered office in London, but the decisions are made in Washington or Paris.

"We're competing against companies backed by foreign governments, foreign banks and foreign balance sheets.