R&D Defence Spending: Economic Impact

To deter and defeat aggression, this Government are investing in innovation in the latest capabilities for our forces. R&D is critical to maximising defence ability to be an engine for growth. It is this Government who have ensured that 10% of our equipment plan must be spent on novel technologies, and we have introduced a £400 million defence innovation fund.

The Minister will know that investment in defence R&D has tremendous impacts on the UK economy, not only through jobs and crowding in private investment, but through the spill-over effects of new technologies helping Britain to prosper. Is it therefore not clear that if the Government were to issue defence hypothecated bonds, that would make a brilliant return for the British taxpayer too?

The hon. Member is absolutely right to say that defence innovation has considerable positive spill-over effects for the wider economy. That is one of the reasons why this Government are investing in technologies that have dual use potential—not just to give our fighting forces the equipment they need but to provide benefits for the wider economy. He will have heard what the Secretary of State set out on defence spending, but I welcome his support for defence innovation and investment in R&D.

For the past few months, my hon. Friend the Member for Bournemouth West (Jessica Toale) and I have been campaigning for a new drone centre to be designated at the Dorset Innovation Park. The park already hosts a strong defence ecosystem for testing, developing and researching drone technology. Alongside this, the county has a well-established network of colleges and universities, in Bournemouth, Poole and Weymouth, offering the skills we need to make this a success. With all this in mind, will the Minister continue to work with me and all relevant stakeholders to establish a drone centre at the Dorset Innovation Park, which I know will help to strengthen national security and, of course, secure good jobs?

As a fellow west country MP, I recognise my hon. Friend’s ambition and determination to see more of those innovative technologies—autonomy, drones and other types of novel technologies—creating good jobs in his community. He has been speaking not only to me but to the Minister for the Armed Forces, who leads on drones, and I wish the businesses in his constituency and the wider region the very best as they innovate to provide our armed forces with the kit they need.