The Management Consultancies Association, whose members advise both domestic and international defence clients, says the gradual implementation of the government’s strategic defence review and the lack of clear long-term funding commitments are creating uncertainty across the sector.
According to the association, delays mean that expertise in areas such as cyber resilience, advanced procurement, artificial intelligence and the protection of critical national infrastructure is increasingly being deployed overseas rather than in the UK.
Firms say they are operating without guaranteed contracts, making it difficult to sustain the workforce and investment levels needed to meet the country’s defence ambitions. Without agreed programmes, companies argue they cannot confidently expand capacity, hire specialists or build apprenticeship pipelines.
The consulting sector overall is growing, with reported expansion of 5.7 per cent this year, but defence related work has remained largely static.
Tamzen Isacsson, chief executive of the Management Consultancies Association, said the government must now provide a clear investment timetable and multi-year funding visibility to translate defence ambitions into operational capability. She added that earlier engagement with industry and meaningful reform of procurement processes would be essential.
She warned that without faster decision-making, the UK risks falling behind allies that are moving more quickly to adopt new technologies.
Industry representatives say procurement systems remain too slow and overly rigid, often shaped by outdated assumptions about risk. They argue that modern defence challenges require more flexible models focused on outcomes rather than traditional contracting approaches.
Consultancy members also emphasised that maintaining capability depends on active deployment and consistent investment. Some firms have reportedly had to redeploy teams to other sectors or pursue projects with international partners due to uncertainty at home.
The issues are expected to be discussed at a gathering of defence leaders, where senior figures including former defence secretary Penny Mordaunt are due to address industry representatives.
Beyond traditional military spending, the association highlighted wider security priorities such as protecting undersea communication cables, safeguarding commercial shipping routes in the North Atlantic and defending critical national infrastructure. It said these challenges require collaboration across government, industry and allied nations.
As the UK seeks to modernise its armed forces and respond to emerging threats, consultancies are urging faster implementation of reforms and clearer long-term commitments to ensure the country’s defence strategy can be delivered in practice rather than remaining an aspiration.
