Commons Sense

House of Commons · Written Ministerial Statement

Defence Update

02 November 2020 · Ministry of Defence

Proposed by Ben Wallace Con Wyre and Preston North

Defence

Summarised by AI from the official record, so it can contain mistakes.

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At a glance

Key points

  • Ministry of Defence transitioning Atomic Weapons Establishment from Government-owned Contractor-operated model to direct government ownership.
  • MOD will establish AWE plc, an Arms-Length Body wholly owned by the MOD.
  • Transition expected to be completed by June 2021.

Issue summary

The Ministry of Defence is transitioning the Atomic Weapons Establishment (AWE) from a Government-owned Contractor-operated model to direct government ownership.

Action requested

The MOD will establish AWE plc, an Arms-Length Body wholly owned by the MOD, with a new Board appointed by the MOD. The transition to this new arrangement is expected to be completed by June 2021.

Key facts

  • In 1993, the MOD entered into a GoCo arrangement with Hunting-BRAE.
  • In 1999, AWE Management Ltd (AWE ML) was awarded a 25-year contract to operate AWE.
  • The Successor Arrangements clause was triggered on July 1, 2019, to explore alternative management options.
  • AWE plc will become an Arms-Length Body wholly owned by the MOD.
  • Transition to new arrangements anticipated to be completed by June 2021.
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