Britain must accelerate its preparations for potential military conflict, with the Ministry of Defence requiring a fundamental culture change driven by political leadership from the Prime Minister, a House of Lords committee has warned.

The cross-party Industry and Regulators Committee said the government risked falling behind the demands of modern warfare unless it moved faster to reform defence procurement, embrace emerging technologies and rebuild the industrial capacity needed to sustain a prolonged conflict.

Its report, Ready for action in 1,000 days? Forging a new partnership between Government and the defence industry, argues that Britain must be ready to fight or deter an attack within the time frame set by the Defence Secretary.

Achieving that ambition will require more than changes inside the MoD as the Treasury and other government departments must also accept a new approach.

The committee welcomed the government’s adoption of the Strategic Defence Review’s call for a closer partnership with industry, alongside significant structural changes already under way. But it warned that investors and suppliers needed certainty, and that ministers must demonstrate the urgency required to turn commitments into military capability.

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Baroness Hayter, the committee’s chair, said the Strategic Defence Review had recognised the need to rebuild Britain’s defences in response to the changing character of warfare, demonstrated by Russia’s invasion of Ukraine.

“Whilst we welcome recognition of the need for change within the Ministry of Defence, it must accelerate, embrace new technologies and enhance the role of SMEs, whilst ensuring the skilled workforce needed to deliver this change,” she said.

The committee wants the government to report annually to Parliament from June 2027 on its performance against the targets in the Defence Industrial Strategy. It also called for a less risk-averse procurement system, arguing that excessive caution can prevent promising technologies reaching the frontline quickly enough.

Smaller companies are central to the proposed transformation. The report urges ministers to establish clearer expectations for how major defence contractors work with small businesses in their supply chains, and to give the Defence Office for Small Business Growth sufficient resources to act as a single entry point for firms seeking government contracts.

An indicative multi-year pipeline of defence work should also be published, allowing businesses to invest in people, equipment and production capacity with greater confidence.

The peers went further, urging ministers to give greater weight to British companies when awarding contracts, including requirements for substantial domestic manufacturing and the use of UK supply chains.

They warned that Britain must have sufficient industrial capacity to manufacture and adapt drones during a conflict, while identifying vulnerabilities in critical materials and components that cannot be sourced domestically. The government should publish an annual assessment of those weaknesses.

The report also highlights the shortage of skilled workers as a potential obstacle to rearmament, calling for a clear plan to train the thousands of people needed to expand production. Defence personnel, facilities and buildings must also be better protected against hostile activity by malign actors.

Hayter said the government needed to show leadership as threats from Russia and other adversaries continued.

“With ongoing threats from Russia and other malign actors, the Government must show the necessary leadership and move at pace to achieve the Defence Secretary’s target of being ready for action within 1,000 days,” she said.

She urged ministers to use the Defence Investment Summit on December 1 to provide businesses with the certainty needed to drive the new partnership forward.

The warning comes as the MoD attempts to open up procurement to smaller suppliers through its Defence Office for Small Business Growth. Ministers have also faced pressure from peers over delays experienced by smaller companies, while Luke Pollard, the Defence Readiness and Industry Minister, has described the procurement system he inherited as broken.

The committee has requested an update on progress by the end of 2027, with the government expected to respond early next year. But its central message is that Britain cannot afford to wait: the 1,000-day deadline demands a faster, more decisive approach across Whitehall.