
UK Steel supports the introduction of a targeted and proportionate UK offset policy as a means of strengthening sovereign supply chains, enhancing industrial resilience and securing long-term domestic capability in critical foundation sectors such as steel. A well-designed regime could support UK investment, jobs, innovation and low-carbon steelmaking, while improving the resilience and competitiveness of the defence supply chain.
In our response, UK Steel emphasises the need for flexibility, phased implementation and clear metrics to mitigate risks around cost, deliverability and procurement delays, drawing on international best practice. If implemented effectively, an offset policy would provide greater demand certainty for UK manufacturers, encourage international collaboration and inward investment, and better align defence procurement with the UK’s wider economic, industrial and national security objectives.