Oral Answers to Questions

Debate between Alberto Costa and Harriett Baldwin

Monday 12th September 2016 Commons Chamber

[Alberto Costa (South Leicestershire) (Con)]

10. What steps he is taking to increase the level of defence spending with small firms.

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

Small businesses are crucial for growth and innovation in this country, and we want them to take an increasing share of our growing defence budget. We are committed to achieving 25% of our procurement spend being with small and medium-sized enterprises by 2020. That target is 10% higher than the one set during the last Parliament.

[Harriett Baldwin]

My hon. Friend is absolutely right that it is essential that we work on that not only in our direct defence procurement process but with our supply chains. I am delighted to be able to let the House know that the supply chain advocate network and the supply chain champions, which my predecessor announced, are well under way, and that last year the Ministry of Defence was able to have direct spend with almost 5,000 different companies.

[Alberto Costa]

What measures can the MOD take to reduce the regulatory burden on small firms such as those in my constituency when they make applications for defence equipment procurement?

[Harriett Baldwin]

My hon. Friend is right to highlight ways in which we can make the process easier for small and medium-sized businesses. For example, this year we removed the turnover requirement in the pre-qualification process, and we are working towards simplifying the contract terms and reducing them to just three pages.