Defence Sector: Support for UK Companies

The defence and security industrial strategy is helping to retain onshore critical industries for our national security and our future. The Ministry of Defence supports the development of a more productive and competitive UK defence sector. With a significant footprint across the UK and the procurement pipeline, the MOD is well placed to contribute to economic growth and levelling up.

May I take the Minister back to the subject of the fleet solid support ships? I realise that he is new to the job, but he has been ducking and diving during earlier exchanges. The prime contractor, as Ministers have admitted, is Navantia. What guarantees have they obtained that the boats will be built in the United Kingdom—especially the first in class—and in respect of the numbers of apprenticeships that would ensure capacity for the future?

As is always the case, the precise details of the contract will be set out in due course, but these facts are absolutely clear: the award is of £1.6 billion to deliver three vessels, and this will be a British ship built to a British design in a British dockyard, mostly with British steel. I hoped that the right hon. Gentleman would support this development, because it strengthens British shipbuilding—and, by the way, it also means £70 million for a British dockyard, which he should certainly support.

I welcome recent developments in the Tempest programme. Having our own combat air industrial capabilities is incredibly important, and ensures that we are not dependent on the Americans, but what is the MOD doing to ensure that all the enablers for modern combat are built here and bring real industrial value to the UK?

I am grateful to the hon. Gentleman for raising such an important point. He is absolutely right; this provides a capability that will ensure that we stay one step ahead of our adversaries, and it will be a collaboration. If ever there was a symbol of global Britain, this is it: us working with the Japanese and the Italians to produce something that is cutting-edge. If I may say so, that is a message that I hope his colleagues will understand as well. It is by working with other countries to share and develop expertise that we can make all the free world that bit freer and safer.

I welcome Friday’s announcement about the UK, Italy and Japan working closely together on the next generation of combat aircraft. This, of course, sits alongside the partnership of the UK, the United States and Australia—AUKUS—and shows that such partnerships are important not only for our national security and the security of the Indo-Pacific, but for UK companies and UK jobs. Does my hon. and learned Friend agree?

My hon. Friend makes the point brilliantly. This is about investing in capability to ensure that expertise remains in the UK, and that we learn and collaborate in developing the next generation of expertise, but there is also the potential to export. Previous examples of our successful collaboration include Typhoon, with more than 600 units sold overseas. If we get this right—and there is every reason to think we will—there will be such opportunities in the future as well.

Does the Minister agree that, contrary to the Opposition’s claim, supporting UK companies in the defence sector not only makes good economic sense, but is critical to ensuring that the sector is aligned with the Department’s national security objectives?

My hon. Friend is absolutely right. So many of these collaborations lead to direct investment into British shipyards—for example, the over £70 million that we were just talking about. But what does this mean in pounds, shillings and pence? It means that those defence jobs are paid, on average, 15% higher than the average wage, and that is just one reason why we need to keep them in the UK.

Contrary to the drivel we have just been listening to, there are absolutely no guarantees about British jobs and British apprenticeships in British yards. At what point are Ministers going to stop talking about it and actually use procurement to deliver and secure the future of British yards?

With great respect, that is completely wrong and risks being misleading. What has been made crystal clear is that these ships will be built, integrated and assembled in the United Kingdom. Appledore will get work; Harland and Wolff will get work—there will be investment and jobs in those shipyards. That is good news and surely something we should be welcoming.

Ascent Flight Training at RAF Valley on Ynys Môn has been awarded a £175 million contract to expand pilot training, with four new Texan T6 aircraft, a new simulator, 11 additional flying instructors and nine new engineering roles. From 2024, RAF Valley will be responsible for training 53 student pilots, up from 36. Will the Minister pay tribute to Ascent Flight Training, to the whole force and to all those who support RAF Valley for playing their part in keeping us safe?

My hon. Friend is such a champion of defence on Ynys Môn, and yes, I absolutely pay tribute to them. It is only through their fantastic work that we can come together as a nation, develop the capabilities that we need and keep us and the next generation safe.

I call the shadow Minister.

The National Audit Office has found the defence equipment plan to be already outdated on its publication and based on optimistic assumptions. With inflation out of control and with foreign currency fluctuations, does the Minister expect defence companies to bear the brunt of this turmoil, and if so, will this ultimately lead to the loss of British jobs?

No, I do not. I am new to this Department, as the hon. Member indicates, but one of the things I am really pleased about is to see the ambition that exists within this Government to develop the capabilities we need. I was also pleased to see that, notwithstanding the difficult circumstances that we and the whole world are in because of inflation, this Government are committed to ensuring that those capabilities remain, that those critical developments—Type 26, Type 31, the future combat air system, Poseidon and so much other equipment —remain in the pipeline, and that we do what we properly should to lead the world in supporting our friends in Ukraine.