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ARTICLE · 10 NOVEMBER 2026

The UK’s Offset Policy For The Defence Sector: From Consultation To Framework.

Freshfields Bruckhaus Deringer
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Last week, MOD published the long-awaited UK Offset Policy (the Policy). It sets out the framework for a formal offsets regime in UK defence procurement. Offsets will apply to selected procurements from April 2027. The Policy forms part of the wider Defence Industrial Strategy and marks a clear break from the existing position, whereby the UK has encouraged foreign defence contractors to invest in the UK on a voluntary basis.

United KingdomGovernment, Public Sector
Kate Gough
Kate Gough
Rob Colvin
Rob Colvin

This is the second blog in our series on the UK's new defence offsets regime. Our first blog (here) covered the UK Ministry of Defence's (MOD) offsets consultation launched in October 2025.

Last week, MOD published the long-awaited UK Offset Policy (the Policy). It sets out the framework for a formal offsets regime in UK defence procurement. Offsets will apply to selected procurements from April 2027. The Policy forms part of the wider Defence Industrial Strategy and marks a clear break from the existing position, whereby the UK has encouraged foreign defence contractors to invest in the UK on a voluntary basis. 

The Policy is core to the 'Back British' procurement approach set out in the Budget. Chancellor John Healey said, "When a big contract goes overseas, these changes will ensure 100% of the value creates new opportunities for workers and businesses here at home, strengthening our industrial base and supporting growth across Britain."

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