UK to assess offsets for overseas defence contracts

The UK government will assess selected overseas defence contracts worth at least £50 million for requirements to deliver economic benefits in Britain, with the policy planned to take effect in April 2027. The Ministry of Defence will decide on a case-by-case basis whether requirements apply and what they involve. The policy, announced by the Ministry of Defence and HM Treasury on October 30, is intended to link overseas defence procurement with domestic jobs and industrial capacity. Suppliers may be asked to provide benefits valued up to the full amount of a contract. That is a ceiling, not a rule requiring every contractor to invest an equivalent amount. Eligible contributions include hiring and training workers in Britain, establishing or expanding UK production, supporting British suppliers, transferring technology and using more UK-made components. Suppliers are to be told early in the procurement process whether offset requirements will apply, according to the government. A new Offset Authority will agree or oversee Offset Agreements and monitor suppliers’ delivery, the government said. The arrangements are intended to ensure domestic benefits when the UK buys defence...