The UK government will require overseas companies winning selected defence contracts worth more than £50 million to provide economic benefits in Britain, potentially worth up to the value of each contract. Measures may include British jobs and apprenticeships, factories, investment in domestic suppliers, technology transfers and greater use of UK-made components. Announced by Chancellor of the Exchequer John Healey MP and Defence Secretary Wes Streeting MP during a visit to BAE Systems Scotstoun in Glasgow, the policy forms part of the Budget’s Back British approach and will be applied case by case from April 2027. A new Offset Authority will agree, value and monitor commitments. The government said more than £35 billion had been spent on defence contracts with overseas suppliers since 2016, representing about 11% of direct Ministry of Defence spending with industry. The policy is intended to support Britain’s industrial base as higher defence spending strengthens the country’s military capabilities, including plans to reach 3% of GDP in 2030 and meet the NATO commitment of 3.5% in 2035.