The UK MoD has announced the largest reform of defence pricing rules in over a decade, with a specific focus on rewarding performance, and substantially increasing the maximum profit available for single source defence contracts. The initial focus is on increasing incentivisation against programme and other non-cost related performance (now up to 50% of the total 20% profit margin available for high risk contracts, up from c.12% previously) through legislation coming into force on 5 June 2026.