Lowering the threshold value for advertising Ministry of Defence (MoD) contracts means that more small and medium-sized enterprises (SMEs) will be able to compete for them, the department has announced.

The threshold was lowered on April 30th in order to promote more innovation and competition, the MoD claimed.

Lord Drayson, minister for defence equipment and support, said that the new initiative is part of a wider range of plans to support SMEs, which "play a crucial role" in the country's defence business.

"In 2005, just over half of all MoD contracts let were placed with SMEs, to the value of over £0.5 billion," he commented.

"Today's announcement is a significant development and one which I am convinced will further promote a dynamic and competitive supplier base."

The recent decision lowered the threshold for "warlike" requirements from £500,000 to £93,000, which will again be dropped to £40,000 on June 30th.

"Non-warlike" requirements will also be decreased to the same price at the end of June.

In other defence news, it was announced yesterday that Prince Harry would be deployed to Iraq along with the rest of his unit.