A New Defence Offset Announcement – Is This The Moment For UK Suppliers?

Fashion-Enter Ltd, Apparel & Textile Manufacturers Federation and industry partners are building the foundations for British SMEs to secure major public procurement contracts. Now, as the Government announces new investment requirements for overseas defence contractors, the opportunity for UK manufacturing is becoming increasingly significant.

For years, British manufacturing has heard the promises of re-industrialisation, re-shoring and buying British. But one fundamental question has remained: how do we turn government ambition into actual orders for UK factories?

A major industry-led initiative, spearheaded by the Apparel & Textile Manufacturers Federation (ATMF), with Fashion-Enter Ltd (FEL) and a consortium of specialist partners, is working to provide an answer. And the timing couldn’t be more relevant.

On 30th October 2026, the Government announced a new Defence Offset Policy requiring overseas companies winning selected UK defence contracts worth more than £50 million to deliver economic benefits back into Britain. These could include opening UK factories, creating jobs and apprenticeships, investing in domestic suppliers, transferring technology and developing British skills. The policy will be applied selectively, on a case-by-case basis, from April 2027, with benefits potentially reaching the value of the original contract.

The announcement sends an important message: when major contracts are awarded internationally, Britain wants its own workforce, businesses and industrial capabilities to benefit. But British manufacturers cannot simply wait for these opportunities. They need the infrastructure, capacity and order commitment.

Over the past 18 months, ATMF has led an ambitious project for the Garment & Textile Workers Trust (GTWT), entitled ‘Unifying the Voice for Public Procurement Contracts in the UK’.

The consortium comprises ATMF as lead organisation, De Montfort University (DMU), with Carolyn Hardaker, Fashion-Enter Ltd, with support from Beth Davy-Day, TJ Hussein, Callum Holloway, Claire Solly, Divya Kama and Jo Bean, SP&KO Consultancy’s Katherine O’Driscoll, and Alix Coombs representing Fashion Roundtable.

Originally launched as ‘Leicester Forward’, the project quickly developed into a nationwide initiative, recognising that the challenges and opportunities facing British garment and textile manufacturers extend far beyond one manufacturing region.

One of its major achievements is the development of In Factories We Trust, an industry-focused website designed to allow buyers and public procurement officers to assess the technical and ethical capabilities of quality UK manufacturers.

The objective is straightforward: make British factories visible, credible and accessible to those responsible for awarding contracts. One of the biggest barriers facing smaller manufacturers is the scale and application process of public procurement contracts. The ATMF has addressed this challenge by bringing together a consortium of more than 20 factories, creating a collective bidding mechanism capable of responding to larger contract opportunities.

A first major tender, valued at £60 million for security clothing items for the Home Office, has already been submitted by the consortium. The group is now awaiting further instructions from the Home Office.

This represents an important development for British manufacturing SMEs. Rather than competing individually for contracts beyond their reach, factories can explore how their combined capabilities can deliver at scale.

Meanwhile, economist Alix Coombs has undertaken detailed analysis of the multiplier effect of awarding public contracts to UK manufacturers rather than sourcing overseas, including the impact of duties payable. The research examines the wider economic value of retaining production, employment and associated supply-chain activity within Britain.

The new defence offset announcement follows wider government procurement reforms designed to increase opportunities for British businesses. Government changes announced in August 2026 place greater emphasis on local jobs, skills development and apprenticeships when awarding public contracts, while also seeking to make bidding more accessible for smaller businesses.

There is now a clear policy direction towards connecting public spending with domestic economic benefit. For garment and textile manufacturers, this raises important opportunities around uniforms, protective clothing, security garments and other specialist textile requirements. However, factories must demonstrate that they can meet the necessary technical, quality, ethical, security and delivery standards.

This is precisely why the work undertaken by ATMF and its partners matters. At the ATMF factory meeting on 20th October 2026, manufacturers heard from guest speakers Suzanne Ellingham, Director at Hyve Group and Source Fashion, and independent consultant Simon Platts.

The discussions reflect the growing importance of connecting manufacturers with buyers, procurement professionals and the wider commercial networks needed to secure sustainable business. The forthcoming report, due to be released at Manchester Made & Regions in November 2026, will bring together the project’s findings and recommendations.

The challenge now is to move from strategy to contracts. Britain has manufacturing expertise, experienced workers, established factories and a growing network of businesses prepared to collaborate. What it needs is a procurement system that enables these capabilities to be recognised and accessed.

With the Government looking to retain more economic value from public spending and overseas defence procurement, the question for British manufacturers is no longer simply whether there will be opportunities. It is whether British factories will be given the green light and the opportunities to deliver.

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