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Defence and Security Industrial Strategy
23 March 2021
Lead MP
Jeremy Quin
Debate Type
Ministerial Statement
Tags
DefenceTaxationScience & TechnologyBusiness & TradeStandards & Ethics
Other Contributors: 33
At a Glance
Jeremy Quin raised concerns about defence and security industrial strategy 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
DefenceTaxationScience & TechnologyBusiness & TradeStandards & Ethics
Government Statement
Last November, the Prime Minister announced a £24 billion increase in defence spending over four years. The Government published their conclusions from the integrated review last week and yesterday, the Secretary of State for Defence outlined the biggest shift in defence policy in a generation. The MOD will spend more than £85 billion over the next four years on equipment and support for the armed forces, reflecting the need for our forces to be adaptable and present in an evolving threat landscape. The UK's defence industry is world-renowned and employs 200,000 people directly and indirectly while generating valuable skills and technology through MOD spending. The new Defence and Security Industrial Strategy (DSIS) aims at greater integration between Government, industry, and academia to foster growth and prosperity across the Union. It will also ensure more transparency in procurement processes and encourage innovation through collaboration with international partners. £6.6 billion is allocated for R&D over four years to support next-generation capabilities such as artificial intelligence and space satellites. The MOD has changed its naval procurement policy to prioritise home-built warships, aiming at a renaissance in British shipbuilding. DSIS also aims to drive pace in procurement processes and incentivise innovation within the supply chain.
John Woodcock
Lab
Barrow and Furness
Question
What specific measures will be introduced to support shipbuilding in Barrow-in-Furness, home to BAE Systems' submarine manufacturing facilities?
Minister reply
The new naval procurement policy allows the MOD to prioritise British-built warships. We are committed to supporting shipbuilding across the UK and recently invested in Type 26 frigates and Type 31 multi-purpose ships, which will be sold internationally.
Gerald Howarth
Con
Aldershot
Question
How will the strategy address the risk of over-reliance on international collaboration in defence procurement?
Minister reply
The DSIS promotes a balanced approach, emphasising the importance of international partnerships while ensuring we have the capability to develop critical technologies domestically. It aims to foster innovation and maintain UK’s strategic independence.
Jim Shannon
DUP
Strangford
Question
How will Northern Ireland benefit from this strategy, particularly in terms of defence procurement and technology development?
Minister reply
The DSIS aims to boost the entire UK economy, including regions like Northern Ireland. It supports skills development, supply chain resilience, and innovation across all sectors contributing to national security.
James Morris
Con
Heywood and Middleton
Question
How does the strategy ensure fair competition between large primes and small and medium-sized enterprises in procurement processes?
Minister reply
DSPCR reforms will include social value procurement policies, making it mandatory to consider wider qualities such as skills creation or supply chain resilience during tender evaluation. This ensures SMEs get a fair chance.
Mark Francois
Con
Lancaster and Fleetwood
Question
What steps are being taken to address the MOD's poor track record in delivering major projects on time and within budget?
Minister reply
The DSIS aims at driving pace and better working inside the MOD. We are committed to improving transparency, clarity of requirements, and a more cooperative approach with industry partners.
John Healey
Lab
Rawmarsh and Conisbrough
Question
Paid tribute to the armed forces and UK defence sector during the pandemic. Welcomed the end of global competition by default policy, changes in naval procurement policy and £6.6 billion investment for R&D over four years. Criticised procurement delivery issues, lack of unit to ensure value from funding package, and questioned how much extra money will be swallowed by black hole in current programmes.
Minister reply
Confirmed focus on delivery based on sound financial footing; acknowledged past job losses but highlighted new investment into defence sector. Emphasised importance of setting out social value goals in tender marks to ensure benefits for national interest. Reassured with progress on risk management and DE&S transformation plan, doubling number of projects under major projects portfolio review.
Question
Complimented advancement of UK industrial base and support for British exports in the publication of strategy. Raised concern about international collaboration on FCAS project and Tempest programme.
Minister reply
Apologised for lack of prior communication; committed to appearing before Defence Committee for detailed discussion. Affirmed commitment to separate Tempest programme but expressed readiness for European collaborations if desired by partners.
Angela Crawley
SNP
Lanark and Hamilton East
Question
May I join others in paying tribute to the armed forces and their contribution to addressing the covid pandemic? We on the Scottish National party Benches welcome the Government’s £188 billion increase in defence spending over the coming four years. However, it is clear that the Government are breaking their commitments on personal welfare, numbers and capacity... I must also address the elephant in the room: Trident.
Minister reply
I thank the hon. Lady for her support for our naval warships policy which is very good news for the Clyde and Rosyth. We have existing frigate orders going through now and will set out further orders that will benefit UK yards, including Scotland's. There are significant investments in Scottish defence equipment and support with £380 per capita investment... Regarding nuclear weapons, Parliament voted to upgrade our weaponry to maintain a credible, minimal, independent nuclear deterrent.
Richard Drax
Con
South Dorset
Question
I was not on the call list for yesterday’s statement by the Defence Secretary but I am appalled and shocked that the Army’s critical mass is being further cut to 72,500. Regarding procurement and the historical failure of the MOD to achieve value for money for the taxpayer, on behalf of the many defence companies across the UK that desperately need certainty...
Minister reply
My hon. Friend has my assurance. This is the incredible value—it has been difficult to get there, but we have balanced the books. I will be speaking to companies this afternoon and tomorrow about placing orders in future so they can invest with confidence.
Jamie Stone
LD
Caithness, Sutherland and Easter Ross
Question
May I also pay tribute to our armed forces personnel for their role during the pandemic?... A great deal of our precious gold has been spent on our splendid two new aircraft carriers. In future, will there be enough surface ships to mount protective screens for these two precious aircraft carriers?
Minister reply
I thank the hon. Gentleman for his warm gratitude to the armed forces and their spread across the UK. We are very proud of our carrier strike group going out later this year with sufficient frigates and destroyers meeting requirements. There will be a dip with the retirement of two Type 23s, but we look forward to having more than 20 destroyers and frigates soon.
Alun Cairns
Con
Vale of Glamorgan
Question
I congratulate our armed forces on their work over the past year in combating covid... Does he recognise that established brands, often with long-standing relationships with the MOD, are often seen to be less of a risk in comparison with new, young, innovative companies that could offer new opportunities for the MOD? So will he agree to offering guidance throughout the procurement process when there is a better opportunity for partnerships with young innovative companies?
Minister reply
I thank my right hon. Friend and I well remember visiting Sierra Nevada Corporation... We are publishing later this year a refresh of our small and medium-sized enterprises action plan, driving up funds going to SMEs from about 13% in 2013-14 to more than 19%. We will be expanding the defence technology accelerator across the UK to help exploit and pull through technology developed by smaller companies.
Kevan Jones
Lab Co-op
Durham North
Question
Welcomed the publication of the defence strategy, but criticised it for being late. Noted that while the UK has an open defence market leading to innovation and investment, Treasury often buys off-the-shelf from abroad without job or tech commitments in the UK. Asked how the minister would implement the recommendations in Philip Dunne's report on prosperity and ensure jobs and investments stay within the country.
Minister reply
Acknowledged the influence of the 2018 Philip Dunne report and emphasised a nuanced approach to new procurements, considering broader impacts beyond just military kit. Announced compulsory social value application in tenders from June 1st under DSPCR regulations.
Damian Hinds
Con
East Hampshire
Question
Welcomed the statement and strategy's focus on industry-academia collaboration, asked how the strategy would help build UK’s skills base in STEM subjects critical for defence industries and wider economy.
Minister reply
Acknowledged building a strong skills base through apprenticeships and FCAS/Team Tempest projects. Highlighted RAF initiatives across Wales in fostering STEM education.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Question
Welcomed clarity on defence spending but criticised the Department for making over-optimistic cost forecasts, as highlighted by NAO. Asked what specific actions would be taken to improve procurement and cost management in the equipment plan.
Minister reply
Acknowledged lessons from the NAO report; outlined reforms including enhanced DE&S commercial expertise, central oversight of major projects, reviewing senior responsible officer structure, and DSPCR reform.
Bob Blackman
Con
Harrow East
Question
Asked for confirmation on new ships to be ordered, built in Britain, and used actively at sea.
Minister reply
Confirmed plans for more shipbuilding in the UK, including Type 26s, Type 31s, and fleet solid support ships. Highlighted HMS Montrose as an example of persistent presence.
Question
Welcomed the designation of FSS as naval vessels but questioned why it took so long; also asked about moving to a 'British by default' policy.
Minister reply
Acknowledged efforts by Spellar and others, promised good working relationship with shipbuilders and further orders. Emphasised nuanced approach for getting best kit.
Question
Critiqued armed forces pay freeze amid rising costs of Trident, questioned prioritisation.
Minister reply
Noted criticism regarding Trident costs; reaffirmed UK's decision to maintain a credible minimum nuclear deterrent. Suggested Scottish Parliament ease tax burden on regular services.
Edward Leigh
Con
Gainsborough
Question
Asked for action on RAF Scampton's future, proposed making it an industry hub.
Minister reply
Confirmed 2022 closure date; promised to follow up with officials and local council.
Angela Eagle
Lab
Wallasey
Question
Will the Minister tell us what action his Department is taking to ensure that a very high percentage of domestically produced steel will be used in the build of the next generation of Royal Navy ships and that the work will be done in British shipyards, not least Cammell Laird in Birkenhead?
Minister reply
The Department is grateful for the work of Cammell Laird on the Royal Fleet Auxiliary. Decisions on steel are made by primes, but the vast majority of steel used in Queen Elizabeth-class aircraft carriers was British, and more than half, by value, of the steel used in Type 26s comes from the UK. Given the extra shipbuilding signalled via yesterday’s Command Paper, there will be further opportunities for British steel.
Diana R. Johnson
Lab
Kingston upon Hull North and Cottingham
Question
Ministers have previously said that the current Red Arrows fleet of Hawk trainers, built at Brough just outside Hull in the 1970s, has an out-of-service date of 2030. Will we get a decision on the renewal of that fleet over the next few years?
Minister reply
The current out-of-service date remains 2030, but there are no plans currently to share for an upgrade. However, this does not mean one is not going to happen; it just means that at the moment I do not have any plans and 2030 is a little distant.
Question
I am keen to hear some good news about the rotary wing sector as well. The changing of some of the difficult and protracted MOD procurement processes offers a huge opportunity to make closer the relationship between the end users and our British inventors. Will that be a factor in many of the initiatives and programmes brought forward?
Minister reply
The announcement of our desire to procure more medium-lift helicopters coming in the mid-2020s will offer opportunities for Leonardo, a fantastic advocate for UK defence capabilities.
Question
What is the Department going to do to address the three lost decades of confusion in naval shipbuilding? Does the Minister think there are sites on these islands apart from the Clyde that could build the Type 32?
Minister reply
There are shipyards throughout the UK that will look into this process. With the plans unveiled, we will have seven classes of vessel produced in the UK for the first time since 1973, a clear vision of how we will progress frigates, destroyers and other vessels such as the multi-role surveillance ship.
Thomas Tugendhat
Con
Tonbridge
Question
With the pivot to Asia we have been promised and the commitment to base out of Singapore, can my hon. Friend assure me that not only will we have the purchasing capability but also the servicing capability?
Minister reply
We are absolutely focused on maintaining the availability of our fleet, and ensuring it is present, persistent and forward-looking.
Chris Bryant
Lab
Rhondda and Ogmore
Question
Will he make sure that small companies have a real chance of big contracts with the MOD? Secondly, will he please buy the Sea Cadets in the Rhondda a new home?
Minister reply
I cannot promise a new home for the Sea Cadets but I take what he says seriously and will look into it. Over 19% of our equipment and support spending goes to SMEs now, and we will have a refreshed SME action plan published later this year.
Question
[Inaudible.]
Minister reply
We continue to be uniquely open to international companies choosing to base themselves here in the UK. We welcome Boeing and others making opportunities available to UK SMEs, and we will see an increase in direct company awards to smaller companies through a more descriptive tender process.
Andrew Gwynne
Ind
Gorton and Denton
Question
Given that Serco has ripped off the Ministry of Justice, failed on test and trace, and also failed on the Atomic Weapons Establishment, what assurances can the Minister give the House that our sensitive defence infrastructure will be protected from it in the coming years?
Minister reply
We look at every tender on a case-by-case basis, examining each company and competitive situation straightforwardly.
Julian Lewis
Con
New Forest East
Question
I am sure that the Minister knows that friends of defence on both sides of the House wish to campaign for the 3% of GDP, as recommended by successive Defence Committees, to be spent on defence, but to do that, we need accurate figures. Does the Minister accept that the black hole in the defence budget was correctly described as £17 billion? How much of that £17 billion would be met by cuts and cancellations? How much would be topped up by money from the extra £24 billion, and, at the end of the process, how much of the extra £24 billion will be left for new projects?
Minister reply
It is interesting to hear that there are colleagues in the House wishing to campaign for 3% of GDP to be spent on defence.
Nick Smith
Lab
Blaenau Gwent and Rhymney
Question
On exercise last year, our Queen Elizabeth aircraft carrier was heavily reliant on Marine Corps F-35 planes. It is great that our allies helped out then. However, given the small number of UK F-35s that have been programmed, does the Minister accept that if both our carriers are deployed at the same time, we will be heavily reliant on US planes in the future?
Minister reply
To say “helped out” is a little ungenerous. I think the Marine Corps genuinely enjoy working with the Royal Navy, as the hon. Gentleman acknowledges, and we have a very close working relationship with them. We have committed to 48 F-35s, which will arrive by 2025. We have not announced how many, but we will be buying more F-35s. We will take that decision by 2025, when the full complement of 48 have arrived.
Question
I welcome this strategy, along with the Defence Command Paper. The Minister will know that world-class steel made in Scunthorpe was used to build the hull of HMS Queen Elizabeth. Will he do all he can to ensure that UK-made steel continues to be used wherever possible in defence contracts?
Minister reply
My hon. Friend is right that the vast majority of steel on the Queen Elizabeth was from UK sources. I am delighted at the role that Scunthorpe played in that, and I hope that there will be many more opportunities in the future. The shipbuilding programme we are setting out obviously produces opportunities for UK steel manufacturers. We will make certain that our pipeline is made freely available, and I sincerely hope that there are plenty of opportunities that will be exploited.
Question
I strongly welcome the emphasis of the statement on making more in Britain, because we cannot be properly defended if we rely on imports for crucial things. Is the UK undertaking a full audit of the designs, intellectual property and rare materials we would need to manufacture all our crucial defence equipment here, were we to face a blockade or other hostile action against our imports? President Biden is currently carrying out such a supply chain analysis for his country.
Minister reply
As my right hon. Friend will know, the supply chains in defence are vast, but it is an analysis that we are undertaking. We are doing it project by project, making certain that the most crucial are investigated first, but we are doing an analysis of our supply chains, and that is being elevated to the Defence Board, to make certain that we have greater oversight of what goes into our crucial defence kit and equipment.
Question
The Government are procuring 80 additional warheads for Trident to stockpile in Scotland, each more than eight times more powerful than the bomb dropped on Hiroshima. The Minister must know that by increasing these weapons of mass destruction, his Government are pushing at a new nuclear arms race and ending 30 years of gradual nuclear disarmament. Is that what global Britain is all about?
Minister reply
Global Britain is about many things, and one of those is helping to defend ourselves, our values, our freedoms and our allies. Part of that, as this Parliament has agreed, should be maintaining an independent nuclear deterrent that is credible and minimal. Of all the declared nuclear states, we have only one delivery mechanism for nuclear weapons, and we maintain a minimum credible deterrent. In order to do that, we have had to raise the ceiling of the total number of warheads we are prepared to have.
Question
I very much welcome the focus of this DSIS on recognising the role that defence can play in contributing to UK prosperity. The Minister has highlighted several issues that I felt needed to change in defence procurement in my review, which was published nearly three years ago. I am grateful for his comments about it. In this statement, he has demonstrated a deep grasp of his brief, on which I congratulate him. Key to gaining public and cross-governmental support for increasing defence expenditure is measuring the impact of that spend on the economy, especially the regional impact in helping to level up Britain. That requires a good handle on data, which is why I recommended establishing defence economics as a valuable tool for the MOD, Defence Equipment and Support, and the defence industry, to help to assess the merits of competing investment proposals when allocating spend. Will my hon. Friend update the House on the role of the joint economic data hub in delivering that information, its security for the long term, and the role that it can play in the UK Defence Solutions Centre and the Defence Growth Partnership, of which I should remind the House I am deputy chairman?
Minister reply
I am grateful that my right hon. Friend has been called as the final Member to ask a question, if that is still the case, on the statement. It is appropriate that he should be. In my first week in this role, I spoke at the defence economics conference, and he presented me with a copy of his paper, which has been incredibly helpful for me, as it has been for the MOD, not only in introducing the defence prosperity programme in March 2019 but in laying some of the groundwork for the DSIS today. Part of that is, indeed, the role of the joint economic data hub, which has already reached its initial operating capacity, and it is conducting a full survey of defence employment. It will reach full operating capability by the end of the year. In doing so, it feeds into our analysis critical information about jobs, regional growth, prosperity and future development. It is really important, and it lies at the heart of what we are doing with DSIS—growing the prosperity of our United Kingdom while at the same time ensuring that we have the kit and equipment that our people need.
Shadow Comment
John Healey
Shadow Comment
Labour welcomes the publication of the Defence and Security Industrial Strategy, marking an end to a policy that prioritised global competition over domestic manufacturing. The strategy confirms increased investment in R&D but questions if this will lead to long-term technological and industrial self-sufficiency for the UK. Labour seeks clarity on the Government's commitment to building and maintaining equipment domestically, and how this will strengthen defence resilience and boost foundation industries like steel. John Healey also highlights concerns about the MOD’s ability to manage costs effectively given its history of poor procurement practices.
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