Wake Up to Money Defence delays
Dec 23, 2025
Mike Tompkins, Chairman of M&MR, discusses the pressures of Christmas retail logistics, including challenges with deliveries and budget changes affecting operations. Judith McKenzie, a partner at Downing Fund Managers, analyzes market trends, highlighting the impact of a £26bn shortfall on UK IPOs and the effects of Brexit on retailers. Both guests emphasize the uncertainty caused by delays in the Defence Investment Plan, raising concerns about investment decisions and skilled labor in the defense sector.
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Delay Undermines Defence Commitments
- The Defence Investment Plan delay leaves companies unsure if strategy words will turn into contracts.
- Industry fears skills and jobs will be lost to commercial markets without clear, funded timelines.
Skills Risk From Funding Uncertainty
- Firms may divert talent from defence into commercial aviation if investment certainty vanishes.
- Rebuilding specialised capability can take seven to eight years after decline, warns Simon Henley.
Pension Shortfall Fuels Takeovers
- UK market faces structural underinvestment from pensions, with only 2.8% allocated domestically.
- That low domestic allocation helps explain takeover activity and capital leaving UK companies.