ADD2816 London Regional Defence and Security Cluster (LRDSC) Grant

1.1.    The London Regional Defence and Security Cluster (LRDSC) was formed in 2024. It is a collaboration led by industry, academia and the public sector, with the support of the Ministry of Defence (MoD). It seeks to raise the profile of London’s defence and security sector; and so encourage greater knowledge sharing, growth and productivity across the capital. 

1.2.    The MoD has agreed to support regional clusters across the UK. It is awarding a grant of £154,875 to the GLA, which will be the accountable body supporting the LRDSC.  The activities undertaken by the LRDSC will raise awareness the role that defence and security industries play in the growth of dual-use technologies such as quantum sensors, AI and cybersecurity. The facilitation of networking and collaboration events between academia and businesses in these sectors fit with the National Industrial Strategy, London Growth Plan and with the BLGS Delivery Plan objective, section 2.2: supporting wider growth clusters to explore innovation in new technologies, new processes and supply chain opportunities.  All of these activities can support employment growth and sustainability.

1.3.    The LRDSC is chaired by London South Bank University (LSBU); the steering group meets once a quarter. This is the first time the LRDSC is receiving a grant from the MoD. The MoD’s objectives for the grant are to: 

•    ensure the LRDSC membership is attractive to traditional and non-traditional defence suppliers
•    fund associated secretariat functions, such as: 

o    handling membership enquiries 
o    marketing and communications
o    website management
o    event planning and costs, and partnership building.

1.4.    The MoD’s request is that the GLA acts as the accountable body to administer and monitor the grant, which will be paid in two instalments:

•    first instalment: up to £72,155, paid on signing the funding agreement (approximately February 2026)
•    second instalment: up to £82,720, paid on achieving agreed deliverables set out in the funding agreement (approximately October 2026). 

The funding covers two financial years: 2025-26 and 2026-27. The MoD has not made any decisions on future funding.
 

2.1.    The GLA will sign a funding agreement with the MoD. This will state that, as the grant recipient, the GLA will monitor grant spend; and achievement of the objectives set out in the funding agreement. It will then process the grant funding to, and enter into an agreement with, LSBU as a named delivery organisation. There is a GLA representative on the steering group. The Economic Development and Programmes Unit will contract manage the MoD grant, as the grant recipient; and report to the MoD on progress against the objectives.

2.2.    LSBU will submit reports to the GLA every quarter. These reports will track progress against the budget and objectives set out in the grant-funding agreement with the GLA. This agreement is also mirrored in the MoD funding agreement with the GLA.
 

3.1.    Section 149(1) of the Equality Act 2010 requires the GLA, as a public authority, to have due regard to the need to: 

•    eliminate discrimination, harassment, victimisation and any other conduct prohibited by under the Equality Act 2010
•    advance equality of opportunity, and foster good relations, between persons who share a relevant protected characteristic and persons who do not.

Relevant protected characteristics are age, disability, gender reassignment, pregnancy and maternity, race, sex, religion or belief, and sexual orientation.

3.2.    The LRDSC will contribute to promoting economic development and wealth creation in Greater London. It will do so by encouraging and supporting networking between academia, and private and public sector organisations, through information-sharing (on its website); event; and knowledge transfer. 

3.3.    The steering group’s quarterly reports will detail how they are ensuring the MoD grant is appropriately and equitably used. 

3.4.    The funded activities (such as maintaining the cluster website, hosting events and managing membership of the steering group) will consider equality implications, to ensure they are accessible. The budget also considers costs for any reasonable adjustments if required.
 

4.1.    The key risks and issues are outlined in the table below: 

Links to Mayoral strategies and priorities 

4.2.    The LRDSC supports: 

•    the Building London Growth Sectors (BLGS) Delivery Plan, section 2.2: supporting wider growth clusters and corridors in London 
•    the London Growth Plan.

4.3.    Our support for the LRDSC recognises the role that defence and security industries play in the growth of dual-use technologies such as quantum sensors, AI and cybersecurity. In addition, the MoD’s support for regional defence clusters forms part of the government’s Defence Sector Plan for the National Industrial Strategy. These all fit clearly with the BLGS Delivery Plan objective.

4.4.    The LRDSC also contributes to a range of other Mayoral priorities set out in other programmes within the Mayoral portfolio, including Supporting Londoners to Benefit from Growth. 

4.5.    The cluster activities align with the London Growth Plan, helping academia and enterprises to: 

•    collaborate and adopt new technologies
•    transfer knowledge
•    explore joint working
•    carry out research and development contributing to business growth 
•    safeguard jobs 
•    create employment opportunities. 

Consultations and impact assessments

4.6.    The project has been developed in consultation with the MoD, and members of the LRDSC. 

Conflicts of interest 

4.7.    No GLA officer involved in the drafting or clearance of this ADD is aware of any conflicts of interest with the proposals set out in this form. 

5.1.    This decision form seeks approval to administer the MoD grant, managed by the Economic Development and Programmes Unit. The MoD will provide the total grant (£154,875) to the GLA, which will act as the accountable body for LRDSC (which is not a legal entity).

5.2.    The GLA will administer the grant to LSBU, as it chairs the LRDSC. In this role, LSBU is responsible for the ongoing establishment of, and operational activities carried out by, the LRDSC – as set out in the MoD funding agreement.

5.3.    The grant funding will be received by the GLA, as below. Spend will take place in 2025-26 and 2026-27:

5.4.    Future years’ budgets will still be subject to the annual budget-setting process. Any contracts that cover future years will need to have break clauses. Any changes in the anticipated spend profile, across the years, will be reflected as updates during the budget-setting process. All appropriate budget adjustments will be made. 

6.1.    Under section 30 of the Greater London Authority Act 1999 (GLAA) the GLA may do anything which it considers will further one or more of its principal purposes that are promoting: economic development and wealth creation in Greater London.

6.2.    In determining whether or not to exercise its power to further one or more of its principal purposes, the GLA is required to consider the effect this may have on the remaining purpose or purposes – in so far as that is practicable – and, over a period of time, to secure a reasonable balance between furthering each of its principal purposes.

6.3.    Section 33 of the GLAA requires the GLA to make appropriate arrangements with a view to securing that, in the exercise of its general power, there is due regard to the principle that there should be equality of opportunity for all people. The GLA is also subject to the public sector equality duty imposed by section 149(1) of the Equality Act 2010 in relation to the exercise of its functions (see section 3 above).

6.4.    Section 34 of the GLAA provides for the GLA to be able to do anything which is incidental to the exercise of its functions, including its general powers under section 30.
6.5.    Sections 1 to 4, above, concern the award of grant funding by the GLA. Officers must ensure that such grant funding is distributed: 

•    fairly
•    transparently
•    in a manner that affords value for money
•    in accordance with the requirements of the GLA’s Contracts and Funding Code, UK government requirements (including those contained in the funding agreement entered into between the GLA and the MoD) and subsidy control principles. Officers must also ensure that grant funding agreements are put in place between – or existing agreements varied – and executed by the GLA and the MoD and by the GLA and LSBU respectively before any commitment to fund is made.
 

7.1.    The GLA will enter into a funding agreement with the MoD as the grant recipient. The GLA will establish a grant funding agreement with LSBU as the delivery organisation to progress the objectives associated with the cluster. The LRDSC steering group meetings are held on a quarterly basis which is currently chaired by LSBU. The cluster will develop a budget and action plan with key milestones which the GLA will use to monitor progress as set out in the MoD funding agreement. The Chair of the LRDSC and nominated representatives from LSBU will have regular communication with the GLA as part of the monitoring requirements. A GLA representative is a member of the steering group and the Economic Development and Programmes Unit will contract manage the MoD grant and liaise with the MoD providing them with a quarterly progress report.

7.2.    The key activities and timelines are shown in the table below: