Author Archives: GK Strategy

Beyond the battlefield: Britain’s drone strategy as a lever for economic growth

Lessons from the battlefields of Ukraine, combined with rapid technological innovation, have pushed drones firmly into the centre of UK defence policy. Yet, the implications of this shift extend far beyond military capability and the defence sector. By scaling domestic manufacturing and considering drone technology within wider growth strategies, there is potential to unlock growth across many sectors in the UK economy.

The pace of technological development seen in Ukraine has demonstrated how quickly drone capability can evolve when innovation is tested under real-world conditions. Low-cost drones, AI-driven autonomous systems, and advanced first-person view drones have challenged traditional defence strategies. For the UK, this has underscored the importance of building domestic drone capability to enhance national security.

To build these capabilities, the Ministry of Defence’s 2024 Defence Drone Strategy and 2025 Defence Industrial Strategy set out a vision that includes drones as a central component of military capability. This has been reinforced by the 2025 Strategic Defence Review, in which the government recognised that drones will be central to future conflicts and outlines its ambition to support innovation and growth in the drones sector.

For defence contractors, the implications are immediate. The government’s desire to deliver progress at pace on these strategies means that businesses that can demonstrate resilient and tested technologies are positioned to win contracts. However, the effects of this industrial strategy will be felt far beyond defence, with these moves creating large spillover effects to the civilian drone market.  Defence procurement can help firms scale production, de-risk investment, and move more quickly into civilian markets. In addition, many of the technologies that are useful as defence capabilities will assist in commercial settings. For instance, advanced first-person view drones will allow drones to be used more easily for law enforcement and infrastructure inspection. Counter-drone technologies also have clear commercial value, Systems developed to detect and neutralise hostile drones can be deployed to protect airports, prisons, critical national infrastructure, and other sensitive sites.

Together, these applications illustrate how defence-led innovation can unlock the sector’s wider economic potential – estimated by government-commissioned analysis to reach up to £103 billion by 2050, as we highlighted in our recent article. This demonstrates the scale of the commercial opportunities now emerging for businesses and investors, as technologies initially developed for defence are increasingly able to scale into regulated civilian markets, supported by a growing ambition within government to be a world-leader in drone technology.

However, despite this opportunity, risks remain. Defence procurement is politically sensitive and shifts in budget priorities over the course of a parliament could constrain investment. This means that businesses must continue to engage with government to reduce regulatory barriers to create a favourable regulatory environment. Businesses who engage with the government’s existing work on regulatory innovation and help government understand where other challenges exist will reap the benefits of the UK’s focus on the drones sector.

If you’d like to discuss the drones sector and related policy in more detail, please reach out to Jacob on Jacob.walsh@gkstrategy.com

Digital transformation in the health service

It’s all coming up digital: the government’s solution to the woes of the NHS

In November’s budget, the Chancellor unveiled a £300 million package of new capital investment for NHS technology. The package includes funding for digital tools designed to automate administrative tasks, streamline clinical workflows and give staff quicker, more reliable access to patient information. It is a continuation of a now-familiar message: digital transformation is at the heart of the government’s plans to modernise the health service and make it fit for the future.

The government also announced plans to create 250 neighbourhood health centres – an initiative aimed at ending the ‘postcode lottery’ of healthcare access. These centres are intended to operate as digitally enabled community hubs that will bring together GPs, nurses, dentists and pharmacists to provide end-to-end care and tailored support. As such, their success is tied directly to the government’s broader digitalisation agenda.

Construction of the centres will follow a ‘new approach’ between the public and private sectors, drawing on both repurposed estates and new-build sites. However, the physical infrastructure is only half the story. The model relies on shared digital tools that allow health, social care and other local services to work together seamlessly. This creates significant opportunities for public-private collaboration not only in the construction, but also in the delivery, integration and ongoing support of the digital systems that will underpin these centres.

This reframing of the NHS as a neighbourhood, rather than national, health service signals that ministers see a community-centred, digitally powered model as essential to curing the NHS’ longstanding issues. Ministers also believe it will facilitate its long-term viability, particularly in light of the growing pressure on the health service stemming from the UK’s rapidly ageing population and the growing number of people living with complex conditions.

Achieving high quality and consistent access to community services across the country will depend on harmonious digital capability across regions. Many NHS trusts still operate disparate legacy systems that limit interoperability, impede collaborative decision-making and prevent seamless access to patient data. For neighbourhood health centres to function as intended, central government must set out a clear, unified digital strategy that individual trusts can implement at pace, ensuring that local demographics and existing infrastructure are properly accounted for.

New data shows that national direction can drive adoption. NHS England reported that more than eight million people submitted a GP request online in October – up 21% from the previous month and 68% year-on-year. This increase demonstrates that when investment, professional willingness and patient buy-in align, digital tools can rapidly become embedded in everyday care. The rise of the NHS’s ‘digital front door’ offers a blueprint for what could be achieved with the new neighbourhood centres.

The government is betting that digitalisation will aid people’s access to the health service and improve patient outcomes. By pairing investment in digital infrastructure with the rollout of neighbourhood health centres, ministers are seeking to reshape both the sites of care and the systems that support it. Whether the strategy succeeds will depend not only on funding and planning, but also on collaboration with private sector specialists as a crucial partner to government in achieving its objectives.

Please contact Sophie Duley via sophie@gkstrategy.com if you would like to discuss the government’s ambitions for digitalisation in the health service in more detail.

Cleared for take-off? The policies shaping the UK drone industry

The government has set itself the ambitious goal for becoming the fastest growing economy in the G7. This lofty ambition sits at the heart of the government’s agenda and is central to its industrial strategy – a 10-year plan to increase business investment in the industries of the future. The drones sector has been identified as a frontier industry, with the government clearing a flightpath for the UK to be a world leader in drone innovation and technologies.

Driving this move is the extraordinary economic potential of drones. A recent PwC report states that the sector could contribute £45 billion to the UK economy and support 650,000 jobs by 2030. Further analysis undertaken by Frazer-Nash consultancy for the government suggests that with public support and a shared strategy and ambition between government and industry, the sector could have contributed £103 billion by 2050. Together, these findings demonstrate how collaboration between government and industry can lead to a thriving drones sector which can drive growth and innovation across the UK.

Regulatory challenges

For this growth to be unlocked, the government must work to address regulatory challenges that constrain innovation. Across government, companies face a range of overlapping rules that can slow commercial deployment and limit investment. One of the largest constraints on the sector is the requirement to keep the drone within the line of sight of the operator. Additional health and safety regulations enforced by the Civil Aviation Authority (CAA) also prohibit drones being flown within a 50m radius of people. This constrains the range of operations drones can perform, limiting their use in many areas such as delivery, infrastructure inspection, and large-scale surveying, particularly in urban areas.

The Health and Safety Executive (HSE) also limits the growth of drones operating in the agricultural sector, with the HSE requiring companies to get approval for almost all aerial spraying. The HSE states that there is a 52-week processing time for drone applications, which will inevitably undermine the innovation and adoption of drones in the agricultural sector.

All these affected areas are where drone technology offers incredible commercial potential, so overcoming these regulatory barriers will be key for businesses looking to unlock growth in the drones sector.

These challenges are not insurmountable and government and industry collaboration is already underway to tackle them. The Regulatory Innovation Office (RIO) is leading a series of pro-innovation reforms for the drones sector, including the introduction of a single, standard risk assessment process to cut approval times for complex drone operations. They are also working on expanding the CAA’s atypical air environment policy, which enables the use of drones Beyond Visual Line of Sight (BVLOS), with the ROI providing £8.9 million in funding for innovative projects that will test the effects of new BVLOS standards. The ROI has also worked with the HSE to make it legal for drones to spray slug pellets, which is a major step forward for agricultural drones businesses.

Public concerns

Drones businesses also face challenges of public perception. The research done by Frazer-Nash consultancy estimated that without public support, the size of the sector will be £65 billion by 2050. That represents a £38 billion reduction in the sector compared to the scenario with public support. Given the incredible economic value that lies in public support, addressing public concerns, such as the use of drones for criminal activities, are of great importance to the sector and government to ensure businesses reach their full potential.

The government is already thinking about innovative solutions to the public perception challenge. In November 2025, the government launched a technology challenge which will encourage industry to develop innovative systems capable of detecting drones designed by criminals to evade current detection methods. If successful, this challenge will help the government intercept drugs being delivered by drones into prisons.

The government’s willingness to cut red tape and find innovative solutions to the challenges facing the sector creates opportunity for the sector. However, it remains essential for companies to engage with the government, both to push further on reducing overly prohibitive regulation and to address public concerns surrounding drone safety. By doing so, businesses can play a central role in shaping a regulatory landscape that supports innovation, builds public trust, and cements the UK’s position as a global leader in drone technology.

If you’d like to discuss drones and the wider political landscape in more detail, please reach out to Jacob on Jacob.walsh@gkstrategy.com

 

 

 

 

 

Ofsted hopes new inspections approach will ease pressure on education providers

Ofsted has now begun inspecting schools, early years settings and further education providers under a new education inspection framework. The changes, in effect from 10 November 2025, are intended to make inspection clearer and more consistent. The new framework is also designed to give more granular detail to parents on a provider’s performance and to reduce the workload and pressure on staff created by inspections. Ofsted has said that it will prioritise volunteers for full inspections between 10 November and the end of 2025, which will give other providers a grace period to familiarise themselves with the new regime.

The new framework will place increased emphasis on inclusion, to ensure that the experiences of vulnerable children and those with SEND are assessed, as well as highlighting achievement as a separate category. The evaluation areas that inspectors will focus on are:

  • inclusion
  • curriculum and teaching
  • achievement
  • attendance and behaviour
  • personal development and well-being
  • leadership and governance

While Ofsted has said that it will continue to assess the effectiveness of a provider’s safeguarding measures, it will not change its assessment process in this area. As a result, safeguarding will continue to be reported separately on a binary ‘Met / Not met’ basis rather than being allocated a rating.

The most significant difference between the new framework and the previous one is that it will forgo single-word judgements on the overall quality of providers. These judgements had led to serious concerns from industry bodies, such as the National Association of Head Teachers, about staff wellbeing, following the death of headteacher Ruth Perry. Instead, inspection outcomes will be presented as a report card setting out separate ratings for each area of focus ranging from ‘exceptional’ to ‘urgent improvement’.

While consulting on the report card system, Ofsted said the new ratings will enable parents to differentiate more easily between providers with the top three ratings replacing ‘outstanding’ and ‘good’. Given the vast majority of schools are rated as either ‘outstanding’ or ‘good’, the introduction of an additional rating is likely to be hugely beneficial to the highest performing schools, allowing them to distinguish themselves from their competitors.

The framework reaffirms Ofsted’s principles that inspections should support improvement and emphasises the need for greater collaboration between inspection teams and the staff working at education providers. To ensure this, the framework includes a formal code of conduct, requiring inspectors to act with professionalism, courtesy and respect. It also requires providers to be open, transparent and honest in the evidence they supply.

During the consultation process Ofsted also confirmed that the new framework would reduce the pressure of an inspection on school leaders. This will be done by having additional inspectors to enable the lead inspector to act as a more consistent point of contact, and by shortening the length of inspection days.

Ofsted has also embedded mental health awareness into its inspector training and has introduced a provider contact helpline, a national team to help with any well-being concerns during an inspection, and an ‘inspection welfare, support and guidance hub’.

An independent evaluation process has also been launched to monitor the implementation of the new inspection framework. This process will gather evidence from education providers on whether Ofsted’s aims have been realised (i.e. whether the framework has sufficiently reduced the workload on staff and whether inspections produce a more accurate reading of a provider’s performance). As part of the evaluation process, interviews will be conducted with providers in Spring 2026 to understand any early or unexpected impact arising from the implementation of the framework. A rolling survey will also be established in 2026-27 to gather the views of education providers on inspections with a final evaluation report published in 2027.

While the inspection process is likely to result in higher scrutiny of a provider’s performance in individual areas, it is also likely to give high-quality providers a clearer platform to demonstrate good practices. It is imperative that providers align their internal processes to the new framework’s core areas of focus. Monitoring their own performance against these areas will ensure that providers are well-equipped to achieve high ratings once full inspections begin under the new framework.

If you would like to discuss Ofsted’s new inspection framework in more detail, please reach out to Joshua Owolabi at joshua@gkstrategy.com.

Conservative Party Conference 2025

GK’s Associate Director, Will Blackman, shares his take on the Conservative Conference.

This year’s Conservative Party conference – Kemi Badenoch’s first as party leader – was a major test for the party that has struggled to find its sense of direction after its catastrophic election defeat last year. Against a background of plummeting polling numbers, and criticism of what some see as Badenoch’s low energy and lethargical approach to the job, the opportunity was hers to lose. A successful conference was necessary to stabilise the ship and shore up her position, at least in the short term.

The conference began with a conveniently timed announcement of a new party policy – to leave the European Convention on Human Rights. Other headline grabbing announcements then followed; including a pledge to remove 750,000 illegal migrants, cutting overseas aid to 0.1% of gross national income, and £47bn of cuts to government spending, including welfare. These were preceded before the conference by a pledge to repeal the Climate Change Act 2008, which Badenoch said “tied us in red tape, loaded us with costs, and did nothing to cut global emissions”.

What these policies do tell us is that the Conservative Party has decided where it wants to focus its electoral energies. New policies that are thinly veiled replicas of longstanding Reform or Farage positions, including on migration, aid and net zero, are evidently not intended to appeal to so-called ‘blue wall’ voters that the party lost to disastrous effect to the Liberal Democrats at the last General Election.  Instead, the so-called ‘red wall’, where Reform is increasingly at its strongest, it would seem is where the Conservatives want to apply their focus. How far this strategy can take the party, which continues to be out-polled by Reform by more than two-to-one, will be the defining story of the Conservative Party in this parliament, and of Badenoch’s leadership.

The conference itself was something of a mixed bag. Footfall was clearly significantly down on previous years, with reports of fringe events being cancelled and photos of a half empty conference hall on social media, all adding to the general sense of malaise. However, on the whole, shadow cabinet performances were fairly assured, with no major missteps or negative headlines. To that extent, the conference largely delivered what the party leadership needed it to.

The dog that didn’t bark during conference was further high-profile MP defections to Reform; much speculated about in recent weeks and hinted at by Nigel Farage himself following his own party’s conference. Whether it was ever true or if it was a case of cold feet, the Conservative leadership will have breathed a sigh of relief, at least for the moment.

Badenoch’s own speech on Wednesday was, on all accounts, a good performance. It won’t have escaped some people’s notice that many of her policy commitments appear to involve reversing policy decisions taken by the last Conservative government, with those on energy and net zero being the most obvious. Nevertheless, it was a speech that delivered the goods for now and received a strong reception from those in the hall. The announcement that a future Conservative government would abolish stamp duty will be music to the ears of many party members. However, with the prospect of a Conservative government taking office any time soon looking highly remote, the more interesting question will be whether the Labour government feels under pressure to make any moves of its own in this area between now and the next general election.

On balance, Badenoch has probably given just enough on policy and performance to see off any immediate threat to her position. However it remains the case that next year’s local elections will be the crunch electoral test for Badenoch’s leadership. Whilst some of the murmuring may fall away for now, without a significant positive change in the party’s polling position and as MPs grow increasingly concerned about losing their own seats, her longer-term future remains far from secure. Having only lost office last year, the Conservatives need more time for memories to fade on their record in office and to benefit from the failings of the Labour government. Unfortunately for Badenoch, with little discernible movement in the polls, time is not on her side.