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Defence Acquisition Reform
28 February 2024
Lead MP
James Cartlidge
Debate Type
Ministerial Statement
Tags
DefenceTaxation
Other Contributors: 15
At a Glance
James Cartlidge raised concerns about defence acquisition reform in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Minister made a statement on reforming the Ministry of Defence's acquisition system, addressing long-standing weaknesses such as over-complexity and delays in major programmes. He emphasised the need for an integrated procurement model to ensure that military capabilities are aligned with threats in a contested battlespace. Key features include pan-defence affordability, new checks and balances through an integration design authority, prioritising exportability from the outset, empowering industrial innovation, and pursuing spiral development by default. The minister also outlined plans to embed export specialists within the acquisition process and accelerate critical procurements such as the mobile fires platform. He announced a launch of the new model in the next financial year with specific targets for digital and platform projects, aiming to improve pace and efficiency.
Maria Eagle
Lab
Liverpool Garston
Question
The Labour MP questioned how the proposed changes would prevent similar failures seen in programmes such as Ajax and Morpheus. She also asked about delays in announcing new medium helicopter procurements and whether the integrated model will speed up or slow down processes.
Minister reply
The Minister responded by highlighting that the reform aims to prioritise exportability, empower industrial innovation, and pursue spiral development which would address issues like those seen in Ajax and Morpheus. He stated that the new model focuses on streamlining processes while ensuring robust checks and balances.
Maria Eagle
Lab
Liverpool Garston
Question
Defence procurement matters, providing vital kit for our forces while supporting UK jobs and economic growth. However, it is a mess, needing deep reform with £15 billion wasted since 2010; £5 billion in this Parliament alone. With 46 of 52 major projects not on time or on budget, the Government fails British forces and taxpayers. How does the Minister’s proposed changes address Ajax procurement failures? It was supposed to see vehicles in service by 2017 but now will be in use until 2026, with £4 billion spent for just 44 vehicles delivered. Can his proposals prevent similar issues with E-7 Wedgetail and Morpheus communication system procurements?
Minister reply
I am grateful to the right hon. Lady for her comments. While we cannot say how our measures would have worked in the past, emphasis on exportability will reduce exquisite requirements. We also have a new set-up with expert advice from DSTL, business and trade export experts, and civil servants from finance. This model will apply to the new medium helicopter, trading more time at the beginning for locking down industrial production issues.
Question
I congratulate the Minister on his statement focusing on data collection and making certain we are AI-ready. I am delighted about DSTL’s enhanced role, consistent with the defence security industrial strategy. Above all, emphasis on spiral development and the new concept of the MDC is welcome. SROs who have enough bandwidth, support, time, and length on a project are critical for success.
Minister reply
I am very grateful to my right hon. Friend; he is absolutely right. On the importance of SROs: 90% spend at least 50% of their time solely on one project, which is very positive. On cultural change, we need strategies delivered and culture changed for desired output effect.
Martyn Day
Ind
Question
I thank the Minister for advance sight of his statement, and for his honesty in detailing the complexity and difficulties involved in defence procurement. I wish him every success with the proposals that he has outlined. Back in December, a National Audit Office report stated that the MOD faced a £16.9 billion black hole in equipment funding. I did not hear any mention in the statement of how that would be addressed, and I fear that it may not be covered in the Budget, so perhaps the Minister could enlighten me. Will he also tell me whether he can guarantee that we will able to meet the requirement for essential contributions to both NATO and Ukraine during this time of conflict? Also missing from the statement were any details of the post-Brexit defence sector labour shortages—how do the Government plan to address those shortages in order to support the sector?—and any reference to parliamentary scrutiny, especially with regard to the nuclear programme. What assurances can the Minister give that the programme will be scrutinised by the Defence Committee and by Parliament? Also, given that we are working with allies to support Ukraine, which I welcome, do we not now need a mechanism such as a comprehensive defence security treaty with the European Union to further that? There is a considerable emphasis on prioritising exportability. Do the Government acknowledge that arms exports and procurement programmes with the state of Israel could make us complicit in war crimes? That is a concern for many members of the public, and I would be grateful for the Minister’s comments on it.
Minister reply
I am grateful to the hon. Gentleman for the broad thrust of his comments. Let me deal with them in reverse order, beginning with his point about arms exports. As he knows, we have strong and robust rules, and we do of course follow them. We keep all our existing export rules and priorities under review. He mentioned nuclear parliamentary scrutiny. I responded to two successive Adjournment debates on nuclear matters that had been initiated by Scottish colleagues. I also appeared before the Defence Committee recently, when I spoke as openly as I could about the highly sensitive issue of the recent certification of our nuclear submarine, HMS Vanguard. The hon. Gentleman mentioned the lack of a labour supply from the EU. Let me gently say to him that when I speak to defence companies, I see a real willingness to invest in apprenticeships so that we can grow our own UK workforce, and I think that that is what we all want to see. On the equipment plan, the hon. Gentleman made the same point as the right hon. Member for Garston and Halewood (Maria Eagle). The equipment plan is a moment in time. It is a huge programme over 10 years, and only a minority of it—perhaps 25% or 30%—is actually on contract. What that is showing is, effectively, the aspiration for programmes in the future. There will be other programmes, not on contract, that we will not pull out of and that we will be expected to be part of, but there is room for flexibility.
Philip Dunne
Con
Question
I remind the House of my entry in the Register of Members’ Financial Interests. I commend my hon. Friend for the remarkable pace at which he has got to grips with the challenges of acquisition in defence. He has not been in post for very long, but he has brought intellectual rigour to those challenges, which some of us have been trying to do for a while. I also endorse everything that was said by the Chair of the Select Committee, my right hon. Friend the Member for Horsham (Sir Jeremy Quin), who is an expert on these issues. I am particularly pleased that he has sought to bring the learning from the current conflict in Ukraine back into our own system here in the UK. Other countries are learning how to adapt their acquisition systems rapidly, and we need to do the same. I completely endorse the integrated procurement model. Its precursors were in the complex weapons programme, which has been running for more than 10 years. I think the fact that my hon. Friend has referred to it in the current contract that he announced yesterday for the next stage of the competition for the medium helicopter lift is a good example of that. He spoke about introducing agility, about exportability and about innovation. Many of us have been pushing the MOD to proceed with all those developments. The spiral development and, in particular, the move from an initial and a final operator capability to a minimum deployable should have a huge impact on the acceleration of processes. SROs have been referred to. If my hon. Friend can consider extending terms— double or triple terms—for service personnel and key civil servants in that role, he will assist enormously in retaining knowledge within the system.
Minister reply
It is a privilege to take a question like that from the former Minister for Defence Procurement, who followed another former Minister for Defence Procurement—the Chairman of the Select Committee. I hope that my right hon. Friend does not mind my repeating what he said to me privately when I got the job. At that time, he made the same point about the importance of SROs’ spending as long as possible in their roles, which was also in the Sheldon report. Obviously there is an employment law issue—in the sense that we cannot insist on that—but I have referred to statistics which show that we are investing more in SROs, in the Army in particular. My right hon. Friend spoke of learning lessons from Ukraine—he is absolutely right. One lesson that I have been struck by is the importance of understanding electronic warfare, jamming and interference, and the way in which the battle space has changed. That is why I keep emphasising the importance in our system of securing data from the front and from war gaming to inform procurement.
Simon Lightwood
Lab Co-op
Wakefield and Rothwell
Question
Is it is right for the Minister to seek to reform a defence procurement system that the Public Accounts Committee has described as “broken”? The shadow Secretary of State, my right hon. Friend the Member for Wentworth and Dearne (John Healey), has just delivered a speech to Policy Exchange, in which he set out that a future Labour Government will create a national armaments director to co-ordinate and oversee defence procurement. Why have this Government not done that in the last 14 years?
Minister reply
It is interesting to hear what the hon. Gentleman has just been WhatsApped by the Labour Whips Office, but I am happy to share what is happening in the real world if he wants to hear it. Andy Start, who runs Defence Equipment and Support, is an excellent national armaments director. He has been out leading trade fairs in Ukraine, he has led reform in DE&S, and above all, at a time of war in Europe, he has overseen DE&S, particularly in Abbey Wood, getting equipment out to Ukraine and helping to keep it in the fight.
Mark Francois
Con
Rayleigh and Wickford
Question
Forgive me, Sir, but—Yes! [Laughter.] I have waited for years to hear an MOD Minister issue this statement, and this very good Minister has done just that. It is true that the Public Accounts Committee said that the procurement system was broken, and last summer the Defence Committee endorsed that in a report, produced by a Sub-Committee that I chaired, entitled “It is broke—and it’s time to fix it”. Well, I take this to be the “fix it” or “put right” plan. I welcome it, and in particular the sense of urgency that goes with it. Given that the Defence Secretary has told us that we now live in a pre-war rather than a post-war world, we must do this sooner and, crucially, faster. The proof of the pudding will be in the eating, but can the Minister assure me and the whole House that the sense of urgency that I mentioned will be at the centre of this, and that he and Andy Start will now get on with it?
Minister reply
I am honoured by my right hon. Friend. We enjoy our robust exchanges, but that was an example that I shall particularly remember. The phrase “a sense of urgency” is, I think, what the public want to hear. Important as today’s exchanges are, this is really serious; it is above politics. This is about the fact that our adversaries are ramping up their procurement and their technology—frankly, in some instances, at a frightening pace. That is why embracing the deep relationship with industry, the constant feedback loop on data from the frontline and from war gaming, is so crucial. I think the Committee has an important role in this regard. I set out our intention in my statement, but for it to be embedded we will have a key set of milestones that will enable us, if we work together, to show that it is being implemented; if we can do that together, we can put the pressure on to ensure that it becomes manifest.
Richard Foord
Lib Dem
Honiton and Sidmouth
Question
I would like to pick up on the point about urgency. We have seen what the UK is capable of in defence acquisition from urgent capability requirements or, previously, urgent operational requirements. These harness the ingenuity of British industry and combine it with the professionalism of the British armed forces personnel. They remove bureaucracy, focus on the capability rather than detailed specifications, and deliver amazing equipment in very short timescales. A great example is the Jackal, the all-terrain mobility platform that was developed at Dunkeswell in my Honiton constituency. How much is the new integrated procurement model informed by the UCR process?
Minister reply
On matters of defence procurement, it always strikes me how many former service personnel will raise the issue of urgent operational requirements or whatever else we call them, whatever variation of the acronym. The hon. Gentleman is absolutely right to stress their importance. They are not something that can be used at scale for the whole procurement system, but in specific, urgent areas they are critical, and we will continue to use them. I am considering them in a couple of sensitive areas, which obviously I cannot talk about further, but he makes an excellent point. By the way, the Jackal is an excellent platform. My first trade mission on exports was to the Czech Republic, and the Jackal was there. I was proud to receive glowing reviews about it from the defence select committee there.
Question
Suggests the importance of procurement teams being responsible for entire capability lifecycle, stresses the need for an arbiter of good taste within strat comms and welcomes the formation of IDA to bring rigour.
Minister reply
Acknowledges the portfolio approach with focus on specific capabilities and agrees that cultural change is key; emphasises locking top-level political decisions early to empower procurement teams.
Andrew Jones
Con
Question
Emphasises the importance of removing delay from defence programmes due to international security concerns, highlights the role of specification changes in complexity, cost and delay.
Minister reply
Agrees that locking top-level political decisions early empowers procurement teams to expedite projects without constant changes.
Bernard Jenkin
Con
Harwich and North Essex
Question
Highlights the need for a wholesale transformation of culture, attitude and behaviour in MOD with emphasis on training and professional development.
Minister reply
Acknowledges the importance of ongoing training and highlights examples such as meetings between MOD officials and industry representatives to share future plans.
Chris Loder
Con
Yeovil
Question
Asks about potential benefits for organisations like Leonardo Helicopters from recent procurement reforms, particularly in the context of New Medium Helicopter procurement.
Minister reply
Emphasises strong UK industrial contribution and exportability weighting in helicopter procurement to support local jobs and industry.
James Wild
Con
North West Norfolk
Question
Proposes longer terms for SROs across all defence programmes, raises concerns about single source contracts and value for money.
Minister reply
Acknowledges the need for reform in single-source regulations to ensure effective procurement in sensitive areas.
Mark Pritchard
Con
The Wrekin
Question
Thanking the Minister for his visit and highlighting the importance of defence engineers at Rheinmetall BAE Systems Land and Babcock in Shropshire, asks about future job opportunities.
Minister reply
Acknowledges the work done by local firms such as RBSL and Babcock; highlights the role of exportability in sustaining industrial base.
Shadow Comment
Maria Eagle
Shadow Comment
The shadow Minister criticised the current state of defence procurement as broken and wasteful, highlighting £15 billion wasted since 2010. She questioned how proposed changes would address past failures such as the Ajax programme delays and Morpheus communication system cost overruns. She also raised concerns about delays in announcing new medium helicopter procurements and questioned if the integrated model will speed up or slow down processes at the front end. The shadow Minister urged for more adjustments to the 10-year equipment plan which is already £17 billion over budget.
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