With Prime Minister Keir Starmer vowing to make Britain ‘battle-ready’ after unveiling the government’s long-awaited Strategic Defence Review, what will be the effect on the UK’s defence businesses?
Property consultant and Bicester Arc promoter Chris White shares his views…
We live in turbulent times and the plans contained in the recently published Strategic Defence Review (SDR) as the UK faces a ‘new era of threat’ certainly make for sober reading.
The report marks a pivotal shift in national defence strategy, with the government warning the threat we now face is more serious and less predictable than at any time since the Cold War. Drones, artificial intelligence and other technologies are changing the nature of warfare.
The SDR emphasises enhanced military readiness and a ‘NATO-first’ approach that will drive substantial investment and bring positive benefits to businesses in the defence sector.
I believe the measures signal a potential surge in demand for commercial property and land across Berkshire, Buckinghamshire and Oxfordshire – including areas such as Bicester Arc – – regions already integral to the UK’s defence infrastructure.
Key SDR initiatives include building new nuclear-powered submarines and six new munitions factories, a £15bn investment in nuclear warhead programmes and procuring long-range missiles.
There are also plans for cyber and electronic warfare investment for AI, robotics, energy weapons and machine learning and data science. The government has pledged to raise defence spending to 2.5 percent of GDP by 2027, bolstering the defence industry and creating more than 1,000 new jobs.
A £400 million Defence Innovation Fund and a new Defence Exports Office will further support UK businesses.
Regional implications:
This could all have major implications for commercial property and land in our region, which positively bristles with leading organisations in innovation, advanced engineering, deep tech, and new technologies.
The Oxfordshire region has a number of major defence-related industries and locations, including RAF Brize Norton, MOD Bicester (Logistics) and MOD Kineton in Warwickshire.
Other companies include QinetiQ, a leading defence technology company and Oxford Dynamics, which provides advanced AI systems for data analysis. Supported by the Defence and Security Accelerator and the Defence Science and Technology Laboratory, it is recognised as a key player in modernising UK defence intelligence.
ESR Technology specialises in engineering, safety, and risk management services for the defence sector and others, while SimCentric provides advanced simulation solutions for military training.
The resulting impact:
While opportunities will arise for major contractors, SMEs in the defence sphere could also benefit from investment. I believe there will be a huge impact on the commercial property landscape through:
- Increased demand for industrial and office spaces: Expanding defence projects will need extra facilities for manufacturing, research and development and administrative operations
- The development of defence infrastructure: The establishment of new munitions factories and enhancement of existing military bases will drive the need for adjacent commercial properties to support logistics and supply chains
- A growth in defence-related employment: An uptick in defence sector employment will stimulate demand for commercial amenities and services, influencing property development and investment opportunities
Oxfordshire's strategic advantage:
I have seen the incredible growth of companies moving to the ‘M40 corridor’ in the 40 years I have been a commercial property consultant in the region. Without doubt, Oxfordshire offers several strategic advantages for defence companies:
- Skilled labour supply: Proximity to leading universities and research institutions provides access to a highly educated workforce, particularly in STEM fields
- Established defence ecosystem: The presence of major defence contractors and military installations fosters a collaborative environment conducive to innovation and supply chain integration
- Infrastructure and connectivity: Well-developed transport networks and proximity to London enhance logistical efficiency for defence operations
Where Bicester Arc fits in:
A real ‘jewel in the crown’ of the north Oxfordshire region, Bicester Arc is ripe for investment thanks to its strategic location in a huge growth area.
The developers of the 48-acre site near Oxford are on track to deliver groundbreaking infrastructure that will power state-of-the-art, bespoke office, laboratory and advanced manufacturing buildings and facilities. There are options from 10,000 square feet to 600,000, providing unprecedented opportunities for defence occupiers.
The strategic positioning of Bicester Arc offers exceptional connectivity, with Oxford just 14 minutes away by train, London Marylebone reachable in 46 minutes, and Junction 9 of the M40 only a two-minute drive, ensuring seamless links to London, Birmingham, and beyond. The site’s dedicated power supply of 13.7MVA gives it a significant edge in a market bustling with leading organisations in innovation, advanced engineering, deep tech, and new technologies.
Future thought:
While it is deeply unsettling to read that Britain must be ready to ‘fight and win’ a full-scale war, the SDR signifies a transformative period that could foster growth, innovation and closer collaboration within the defence sector.
Image: An early image of development plans at Bicester Arc.