The scale and ambition of the SDR should not be called into question; like much of the Western world, the UK has reacted to an increasingly conflict-prone international order. As experts in logistics real estate, we would note several key policy implications that the government will need to address as part of the SDR’s implementation
Facilitate land and development approvals
If there is a lesson to be taken from the pandemic, it is that a well-functioning, diversified, and robust national logistics ecosystem is vital to a functioning manufacturing industry; defence is no exception to this rule. National and local policymakers need to recognise that warehousing forms part of a country’s infrastructure and must take a proactive stance in ensuring land availability aligns with anticipated industrial and logistics expansion. Additionally, traditional infrastructure development will also need to keep pace with the defence sector’s expansion.
There is also a strong case for repurposing underutilised public estate, such as surplus MOD land or decommissioned bases, to avoid delays tied to land acquisition
Kevin Mofid, Head of EMEA Logistics Research, Commercial Research
Local authorities in regions earmarked for defence-linked activity should revisit their local plans and assess the potential for allocating additional land to B2/B8 uses. At the national level, the Government could accelerate delivery by designating key defence manufacturing sites as Nationally Significant Infrastructure Projects (NSIPs), thereby streamlining planning approvals.
There is also a strong case for repurposing underutilised public estate, such as surplus MOD land or decommissioned bases, to avoid delays tied to land acquisition. While the logistics market is currently seeing a historic increase in supply, we would note that much of this stock is obsolete, unsuitable for defence-based use, or poorly located to service the defence sector.
Encourage clustering and hubs
The Government should support the development of defence-focused clusters where industry, academia, and public sector partners can co-locate. This could involve expanding enterprise zones or science parks with a defence manufacturing and R&D focus. Incentives such as tax reliefs or special status designations can attract anchor tenants and supply chain partners. From a logistics and land-use perspective, clustering enables shared infrastructure – training centres, storage hubs, or logistics parks – maximising efficiency and land value. Public sector co-investment in flagship facilities could act as a catalyst.
Ensure training and labour supply
To meet future workforce needs, collaboration with education providers is essential. This may involve establishing or scaling up technical colleges in areas of defence investment, with vocational programmes tailored to local employer demand (e.g. welding, CNC machining, or logistics operations). Labour mobility also matters; improving transport links and affordable housing options will help ensure people can access new opportunities in emerging defence corridors.
Read the other articles within the report below:
