Category Archives: Government

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

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

 

 

 

 

 

Labour Party Conference 2025 Takeaways

As the party departs Liverpool, still clearly grappling with the challenges of what being the party of government brings, we’ve learned a lot about the direction the party is going. Here are our quick takeaways.

Keir Starmer has shored up his position…for now. With the noise going into this conference all about the leadership challenge from Manchester’s Andy Burnham, the sight of his early departure from conference before the PM’s speech will please No.10. In what could have been a perilous week for the PM, strong reaffirmation of the Chancellor’s fiscal rules, coupled with strong defences from cabinet ministers and aides, resulted in Burnham conceding that Starmer is the “right person for the job”. You can’t help but add the line “for the moment…” with other rising stars like Shabana Mahmood and Wes Streeting clearly biding their time.

Labour is taking the fight to reform. In what was probably his strongest speech as party leader, Starmer clearly set the parameters for British politics. For him, this is about Labour vs Reform. Decency vs division. Ultimately, the class-conscious speech was a deliberate attempt to win back the working class that has increasingly abandoned the party over the years to the likes of Reform. In this more combative approach, he also decried Reform’s policies on immigration as “racist”. A punchy line of attack which worked in the room, but he will hope doesn’t unravel as a perceived attack on all Reform sympathisers who are doubting the centrist parties’ ability to deliver.

The looming budget has not got any easier. In media briefings over the weekend, and in her speech, Rachel Reeves continued the manifesto commitment to not raise taxes on working people. Whilst at the same time, to appease critical voices in the Labour party, she is flirting with the idea of more spending – both on infrastructure and lifting the two-child limit. She said she is a chancellor that wants to invest. None of this sounds like a chancellor staring down the prospect of having to find £30bn in November to plug the gap predicted by the OBR.

The difference a Labour government makes. This has been the underlying strategic narrative of the conference to fend off criticism there is no difference between this government and a Conservative one. We saw speech after speech rattle off long lists of tangible activities the government has taken across the policy spectrum.  We can expect much more of this narrative to come, together with a clear focus on ‘showing’ that delivery to the electorate, rather than just ‘telling‘ them.

Why building 1.5 million homes isn’t as simple as it sounds….

Building 1.5 million new homes over the course of this parliament was a flagship policy commitment in Labour’s general election manifesto. The recently appointed housing secretary Steve Reed initially echoed the government’s ambition with the slogan ‘build baby build’. Reed has gone onto say the rate of construction is ‘unacceptable’ and has promised to increase the pace of housebuilding to deliver on Labour’s ambitious pre-election pledge.

The housing industry is facing a series of skills shortages. The Office for National Statistics warned that there are over 35,000 job vacancies in construction, many of which remain unfilled due to a lack of qualified workers. The Construction Industry Training Board (CITB) has stated that 61,000 new workers are needed each year to meet the government’s housebuilding target. Ministers have heard the calls of the CITB and in March announced that they would be investing up to £600 million to support training in the construction sector. This includes £165 million to help colleges deliver more construction courses and £40 million to support new foundation apprenticeships (launched in August). The £40 million includes an incentive of £2,000 per foundation apprentice hired and retained by employers which has been widely welcomed by the construction industry. The government has signalled that there could be continued investment, although this is likely to be restricted due to the current pressure on the public finances.

Another hurdle is the planning process. The number of new homes built in the UK has fallen during the government’s first year in office. Ministers have conceded there are ‘excessive rules’ delaying construction. The government is attempting to streamline the planning process through the Planning and Infrastructure Bill which is currently before parliament. Ministers claim that the bill will create a more decisive planning system and increase the amount of land available for developers. Whilst the bill is a step in the right direction, the impact is unlikely to be immediate.

Despite these barriers, there are some clear opportunities for the construction sector. Increases to training investment, new apprenticeships and the promise of reforms all signal the government’s continued prioritisation of the sector. The changing environment and the development of a potential second planning bill present stakeholders with a wide range of opportunities to engage with policymakers, shape regulation and improve relations between the government and sector.

Opportunity or Uncertainty? What the government reshuffle means for food and agriculture businesses

The government’s latest reshuffle has moved two Defra heavyweights to new departments. Rt Hon Steve Reed MP and Daniel Zeichner MP had invested time and energy in building relationships with the food and farming industries and getting to grips with the challenges faced by businesses in each. With a new secretary of state heading up the department and a new farming minister now appointed, the challenge for both the ministerial team and the sector is to hit the ground running and ensure policy progress does not stall.  

The first all-female ministerial team, the new Defra team is certainly groundbreaking. Each minister brings experiences from different backgrounds and with that, a different set of priorities. For businesses in the food and agricultural sectors, these appointments signal both opportunity and uncertainty, raising questions about how the department will approach issues like rural growth, food security, and land management.  

A fresh new ministerial line up at Defra presents farming and agricultural businesses with a wealth of opportunities. In the aftermath of a reshuffle, businesses should be thinking about how to best introduce themselves and strike up a relationship with the new team. While getting to grips with their briefs, ministers will be seeking solutions to the challenges they face. Aligning your business with the government’s priorities, and offering tangible solutions, will be the most effective way to gain trust.  

New Appointment: Emma Reynolds – Secretary of State for Environment, Food and Rural Affairs 

Emma Reynolds was appointed as Secretary of State for the Environment, Food and Rural Affairs on 5 September 2025, replacing Steve Reed. Reynolds joins Defra from the Treasury, where she served as Economic Secretary to the Treasury and City Minister. She was elected as the MP for Wycombe last year. 

The reaction to Reynolds’ appointment from the agricultural community has been largely positive. Shortly after assuming the role, Reynolds met with NFU President Tom Bradshaw, who described their meeting as a ‘constructive and positive conversation’. Speaking to the Farmers Weekly Podcast, Jonathan Roberts of the Country, Land and Business Association stated that Reynolds is ‘pretty interested’ in farming and that she understands the challenges that the industry is facing. In a year where farmers have been protesting in Westminster, particularly over the issue of inheritance tax relief, rebuilding trust between the agricultural community and the government is crucial. Reynolds’ background in the Treasury could also be an advantage for the industry. Whilst she might lack experience in dealing with agricultural issues, her financial acumen and understanding of how the Treasury works is an important starting point for unlocking rural growth and protecting the industry. 

New Appointment: Dame Angela Eagle CBE – Minister of State (Minister for Food Security and Rural Affairs) 

Dame Angela replaced Daniel Zeichner MP as Minister for Food Security and Rural Affairs as part of last week’s cabinet reshuffle. Eagle joins Defra from the Home Office, where she served as Minister of State for Border Security and Asylum. She has been the MP for Wallasey for over thirty years and has a wealth of experience in both government and the shadow cabinet. 

Eagle’s appointment has attracted a mixed reaction from the agricultural community. Whilst Eagle’s profile as a senior Labour MP might result in farming becoming a significant issue on the policy agenda, she is seen more as a political operator rather than a sector insider. Despite the backlash regarding changes to inheritance tax relief for agricultural assets, Zeichner was praised for his ability to build relationships with the farming community. Therefore, it is important that Eagle engages with the sector to the same extent and grasps the realities of the challenges faced by the agricultural community. 

Existing Appointment: Emma Hardy MP – Parliamentary Under-Secretary of State (Minister for Water and Flooding) 

Emma Hardy MP was appointed to her current ministerial position in July 2024, having previously served as Shadow Minister for Environmental Quality and Resilience. Hardy is a trained teacher and worked for the National Union of Teachers before entering politics.  

Since taking office, Hardy has dedicated significant funding to enhance resilience against flooding. This includes £60 million in recovery payments to farm businesses, and £50 million to support internal drainage boards in reducing flood risks in rural areas. Hardy has also been proactive in supporting the construction of new infrastructure to enhance water security, such as the Havant Thicket Reservoir. 

However, Hardy has been involved in flashpoints between the government and the agricultural sector. In January 2025, the government rejected an application from British Sugar and the NFU to use an emergency neonicotinoid pesticide on sugar beet, with Hardy stating that the decision was made to protect bees. This illustrates the complexity of government decision making when balancing agricultural productivity with environmental impact. This dynamic is likely to continue throughout the remainder of this parliament.   

Existing Appointment: Mary Creagh MP – Parliamentary Under-Secretary of State (Minister for Nature) 

Mary Creagh MP was appointed as Minister for Nature in July 2024. Creagh has an extensive background in environmental affairs, as previous chair of the Environmental Audit Committee and previous shadow Defra secretary of state.  

Key milestones for her tenure as Minister for Nature include the announcement of a Nature Restoration Fund, which promises to work alongside farms in supporting conservation efforts, and a £1.1 billion boost to improving local recycling services in England. In June 2025, Creagh also announced a £13.6 million scheme to support farming and cut food waste by redistributing surplus produce to homelessness charities and food banks.  

Existing Appointment: Baroness Hayman of Ullock – Parliamentary Under-Secretary of State (Lords Minister) 

Baroness Hayman has been a Parliamentary Under-Secretary of State at Defra since July 2024, bringing with her extensive parliamentary and environmental experience. Baroness Hayman took up her peerage in the House of Lords in 2020. She served as Shadow Secretary of State for Environment, Food and Rural Affairs between 2017 and 2019, and later the Shadow Environmental Spokesperson from 2020 to 2024. 

As a passionate animal welfare advocate, most of Baroness Hayman’s parliamentary activities fall under that responsibility. However, she has also sought to promote the interests of British farmers in supporting government efforts to protect livestock by implementing preventative measures against the spread of foot and mouth disease.