Sir Keir Starmer has moved to protect Britain's defence industry from American takeovers as the Prime Minister begins following through with his vow to put the country on a "war footing".
At a defence event in Westminster yesterday, Starmer pledged to put "Britain first every step of the way" as he heaped praise on the UK's aerospace firms - which he said must be kept British.
It follows reports that American private equity giant Bain Capital has tabled a £1.1billion bid to buy Chemring, which makes crucial countermeasures used by RAF and US Air Force jets against missiles.
Bain's looming buyout could extend a list of defence firms which have been snapped up by US investors - a situation which the UK, as it appears to pivot away from America towards Europe, has been urged to avoid.
Chemring manufactures anti-missile countermeasures like this - and is used by the RAF and US Air Force
CHEMRING
At Monday's event, the Prime Minister and Defence Secretary John Healey both wooed military tech firms as the pair pushed to keep production lines within the UK.
Starmer said: "We're really good at this in Britain. We're really good at creating things, making things.
"We're front of the game when it comes to AI and technology. We punch above our weight. We want to make sure that we stay in that position."
Asked whether it was important Chemring stays UK-based, the PM replied: "Keep them British, absolutely. We're really proud of what we do."
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At a defence event in Westminster yesterday, Starmer pledged to put 'Britain first every step of the way'
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Healey added that last week's increase in defence spending highlighted a "need to reinforce British industry, British innovation, British jobs, British business".
"You see exactly the same concern from my counterpart Pete Hegseth, over in the US.
"You build up the deterrent strength and your war fighting strength of your forces by making sure that you've got a strong, innovative industry behind them."
The Government retains the power to block defence takeovers on national security grounds - but it has historically waved American purchases through thanks to stable, close ties between the UK and US.
Defence Secretary John Healey said his US counterpart Pete Hegseth harboured 'exactly the same concern' over reinforcing domestic military industry
REUTERSBut with Britain and Europe dialling up efforts to decouple from America, such ventures could become significantly less straightforward.
Chemring, if the deal goes through, would join Meggitt - which supplies vital components for firms like Airbus and BAE Systems - and air-to-air refuelling pioneers Cobham in falling into American hands.
On Monday, the Prime Minister was firm that "we must strengthen our relationship with America for our security, technology, trade and investment" - calling the US "always indispensable".
But since then, the US has halted military aid to Ukraine - which could further strain the "special relationship".
