Not in the Defence team, Mr Speaker. We shall leave that to others.
The Ministry of Defence’s sustained investment in industries across the UK supports over 200,000 jobs. Continued high and focused defence spending, supported by the changes we are making as part of the defence and security industrial strategy, will contribute to further economic growth and prosperity across the Union.
It is good to see that you are in fine, typical wit despite the heat, Mr Speaker.
As my right hon. Friend said, the UK defence sector is vital for jobs, the defence of this country and our allies, such as the Ukrainians, against Russian aggression. I am very proud of the contribution of Thales, which is located in my constituency. What is his Department doing to encourage defence contractors such as Thales to expand to meet this country’s increasing defence needs?
My hon. Friend asks an important question. Last week, I met the Defence Suppliers Forum, which includes Thales. We work closely together not only to indicate potential investments by defence in what we would need, but to make sure that we both meet our future requirements. Thales UK is one of Britain’s biggest and most advanced defence companies. Its NLAW—next generation light anti-tank weapon—systems are being used in Ukraine. I congratulate him on posing a question on Thales.
Jacob Young
Does my right hon. Friend agree that procurement rules in the UK should recognise the socioeconomic benefit of investment as well as value for money in defence spending? To that end, will his Department ensure that more defence contracts are given to businesses based in Britain, such as our fantastic manufacturers in Teesside?
Yes, the defence industrial strategy embraces the social value model from the Treasury in competitive procurement and ensures that tackling economic inequality and equal opportunity are factors that are taken into consideration in procurement. Under my direction and that of the Minister for Defence Procurement, the Ministry of Defence always has regard for onshore sovereign capability and industrial skills.
Scottish businesses receive more investment than average across the UK from defence procurement, so how will my right hon. Friend continue to encourage the building of the skills that we need to help Scottish businesses to continue doing their bit in defence of our United Kingdom?
Our investment in Scotland was £1.99 billion last year, on projects such as the Type 26 in Govan, the Type 31 in Rosyth, airborne radars and advanced laser munitions in Edinburgh, which all help to sustain the skills base. It is incredibly important that the Scottish Government and the UK Government work with the further education colleges and the manufacturers to make sure that they invest in the skills that we so vitally need.
Nicola Richards
The Boxer programme in Telford has a positive effect throughout the midlands, with over 60% of its value flowing into UK supply chains. Can my right hon. Friend confirm how certain we can be of future jobs and investment from defence land equipment?
Yes, the fact that the Army will invest £41.3 billion in new capabilities over the next decade—including the likes of Boxer, Challenger 3 and two new major programmes that will develop in the near future, such as deep fires—will increase production and the employment base, which is also why it is so important that we invest in the skills at the same time. That will put UK land manufacturing back at the forefront of the international defence sector. It is a part of the sector that has lagged behind air and sea for too long.
May I make it simple for the Secretary of State? Defence jobs depend on orders, principally from his Department, and even export orders depend on British validation. He referred earlier to his support for the British defence industry, so why will he not now commit to ordering the fleet solid support ships to be built in British yards?
They will certainly be integrated in British yards, and a significant proportion will be built there. Let us have a look at what the bidders say; I have not yet seen the bids. As the right hon. Gentleman absolutely points out, British defence is dependent on British manufacturing, but British manufacturing is dependent on exports. If we are going to export our defence, as with Typhoon aircraft, Boxer and many of our exports, we often have to collaborate with international partners, because if we close the door on them, they are not going to buy British kit.