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UK Defence Industry: Procurement

22 June 2022

Lead MP

Fay Jones

Responding Minister

Leo Docherty

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Word Count: 4175
Other Contributors: 5

At a Glance

Fay Jones raised concerns about uk defence industry: procurement in Westminster Hall. A government minister responded.

Key Requests to Government:

I ask the Government to extend their levelling-up agenda to remove barriers for recruiting and retaining talent in rural areas within the defence procurement sector. Additionally, I urge them to consider increasing the amount of food sourced from Britain for our armed forces, aligning with the commitment to domestic food production.

How the Debate Unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said:

Lead Contributor

Opened the debate
I am concerned about the challenges faced by UK defence procurement, particularly in rural areas where hiring highly skilled individuals is difficult. There are limitations on growth due to a lack of connectivity and accessibility. The Ajax armoured vehicle programme faces uncertainty regarding its future, despite being a key employer with 600 employees. I noticed that most food items in operational ration packs do not come from the UK, which contradicts the Government's commitment to working with UK businesses.

Government Response

Leo Docherty
Government Response
I am pleased to respond to this important debate and very grateful to my hon. Friend the Member for Brecon and Radnorshire (Fay Jones) for securing it. This is Armed Forces Week, so I would like briefly to reflect on the important contributions of our military, especially the Welsh elements, in recent times. Last summer, we saw the magnificent performance of the Royal Welsh in helping to evacuate refugees from Afghanistan during Operation Pitting, and during covid we saw the remarkable performance of the 160th (Welsh) Brigade, which came to the fore delivering personal protective equipment and driving ambulances. We also have the incredible RAF pilots at RAF Valley. The home of excellence in the British infantry is, of course, the school in Brecon, which I know very well, to my own discomfort. I am very pleased that in recent times we have been able to reaffirm our absolute commitment to Brecon barracks. Of course, we are grateful to my hon. Friend and note her energetic campaigning on behalf of Brecon barracks. That decision, coupled with our plans for Future Soldier, with an upturn in the percentage of our forces based in Wales, and an announcement of contracts worth £695 million to support the Hawk T2 in RAF Valley, as well as the opening of the new Royal Navy Reserve base in Cardiff Bay, to the tune of £11 million, reaffirms our commitment to Wales in the context of UK defence. However, as my hon. Friend rightly pointed out in her eloquent remarks, that military presence delivers not just security, but local prosperity. In 2019-20, Ministry of Defence direct expenditure supported more than 5,000 Welsh jobs, and just last year we spent £866 million with local industry, which equates to £270 for every person in Wales. That just gives a sense of the scale of the level of investment in Wales. Of course, defence is a UK endeavour; it is not just about Wales. So I should point out that in Scotland the equivalent expenditure was £1.99 billion, driving forward our remarkable Trident programme, which delivers our unique and magnificent deterrent capability. In Northern Ireland we delivered £64 million of expenditure. For the whole United Kingdom we delivered £20.5 billion just last year. I am happy to recommit our determination to ensure that SMEs are a part of our collective success. I agree entirely with the main thrust of the speech we heard from my hon. Friend the Member for Brecon and Radnorshire, which was about supporting SMEs as an integral part of our supply chain. They are indeed the lifeblood of the Welsh defence industry. She referred to the fact that there has been a growth in the proportion of supply they make up, which I am pleased about. We want to increase the proportion of defence expenditure that goes into SMEs to 25% by the end of this year. That will not happen by accident. It is happening because we are fortunate to have many SMEs who are agile and producing products that we absolutely want. My hon. Friend mentioned Charcroft Electronics and Compact Orbital Gears in her constituency. They are two very good examples of first-rate SMEs. I should also mention Radnor Range Ltd at Presteigne, which provides range facilities for the testing and evaluation of weapons and is another good example of a first-class SME with which we partner. My hon. Friend can rest assured that institutionally we will continue to support companies big and small, and we have strategies such as the defence equipment plan, and the defence and security industrial strategy, alongside subsector plans to provide industry with the transparency it craves in order that it can clearly understand what capabilities we need and then respond to that. We are also using the opportunity provided by our departure from the European Union to develop better defence and security procurement regulations, which will be tailored to better meet our own needs. That will lead to the Procurement Bill, which will replace the existing set of complex public procurement ordinances with a single uniform framework. It will be simpler to use for both the Ministry of Defence and suppliers and it will make the acquisition process much faster, helping to unleash the innovative potential of British businesses. To help innovative companies succeed, we have ringfenced £6.6 billion for research and development spending. That money will help industry produce the kinds of game-changing capabilities that are necessary to keep us ahead of the curve of innovation. On skills, I applaud the apprenticeship programme that my hon. Friend mentioned. We are working with the Department for Education to develop STEM programmes in local schools and colleges. I want to be clear that we are absolutely on the same lines. We are excited about the prospect of a greater number of SMEs being involved in the collective success of defence procurement. It is an exciting and innovative time for defence investment, driving forward the kind of operational output we need to fulfil our ambitious plans in the Future Soldier programme and the defence Command Paper.
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About Westminster Hall Debates

Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.