Defence Industrial Strategy

Luke Pollard Excerpts

Monday 8th September 2025 Commons Chamber

[The Minister of State, Ministry of Defence (Luke Pollard)]

With permission, Madam Deputy Speaker, I wish to make a statement on the defence industrial strategy. Today we fulfil another manifesto commitment by publishing our plan to strengthen our security and grow our economy. It is a plan to back British-based industry, create British jobs and drive British innovation.

Before I set out the detail of the strategy, I would like to place on the record my thanks to my right hon. Friend the Member for Liverpool Garston (Maria Eagle) for her work in developing the strategy. I also extend a warm welcome to my hon. Friend the Member for North East Derbyshire (Louise Sandher-Jones), who has joined the Ministry of Defence team.

This is a plan supported by £773 million of investment—a plan to make defence an engine for economic growth in every nation and region of our country. The men and women who serve our nation are rightly respected across the world for their dedication and professionalism, yet as we know from the war in Ukraine, when a country is forced to fight, its armed forces are only as strong as the industry that stands behind them. The UK has one of the most advanced, innovative defence industrial bases the world over, but we are in a new era of threat, which demands a new era of UK defence.

Our strategic defence review set out our vision to make Britain safer—secure at home and strong abroad. Through our defence industrial strategy, we will ensure that we have an industry to deliver that vision. All the pledges made today can only be met because this Labour Government have committed the largest sustained increase in defence spending since the end of the cold war: 2.6% of GDP by 2027, and 3.5% by 2035, alongside our NATO allies. But with the promise to invest more comes the responsibility to invest better. By implementing our strategy, we will ensure that workers and businesses across the UK feel the benefit of the defence dividend.

In opposition, the now Defence Secretary told the House:

“Labour’s determination to see British investment directed first to British industry is fundamental.”—[Official Report, 23 March 2021; Vol. 691, c. 798.]

Today, ambition in opposition becomes action in government. Using every lever available to the Government, our strategy will prioritise British-based businesses. We will make it easier for British-based firms to do business with the Ministry of Defence. We will launch an office of small business growth to support small and medium-sized enterprises in accessing MOD contracts, and we will give greater clarity by sharing our five-year acquisition pipeline, allowing businesses to invest with confidence.

The £10 billion frigate contract signed with Norway last week was the biggest warship deal in our history—a demonstration that when we export defence capabilities, we not only strengthen our security abroad, but create high-skilled jobs at home. Through our strategy, we will back British businesses to go out and win—win more contracts and create more jobs. The new office of defence exports brings responsibility for defence exports back into the Ministry of Defence and creates a Government-to-Government exports structure that reflects what our allies and industry need.

Sustaining sovereign capabilities is the cornerstone of national security, so our strategy sets out the requirement to onshore key assets. We will maintain the advantages afforded by open international competition, but in a way that improves value for the British taxpayer. For the first time ever, we will introduce an offset policy, designed in consultation with industry. It will mean that when we buy from our allies, the UK economy will be strengthened in return through new jobs and novel technologies.

Our defence industrial base represents a commitment to innovation and excellence. Today, it supports over 460,000 jobs and over 24,000 apprenticeships across the UK, the vast majority of which are unionised. As a trade union member, I know that good, well-paid and unionised jobs are good not only for defence but for growth. The defence industry is a source of not only prosperity but pride; it proves that we are still a nation of makers. When I speak with defence workers, I see their deep sense of purpose in what they do. They are right to feel that way; their efforts keep our nation safe. Through our strategy, more people will be afforded the opportunities and rewards of working in this industry.

To ensure that the benefits of the defence dividend are shared across every nation and region of the UK, we are investing £250 million in defence growth deals. Our deals will build on inherent strengths in defence communities by improving skills and infrastructure. The first phase will be launched in Plymouth, where we will focus on advanced marine technologies and autonomous systems, and in south Yorkshire, where we will build on our recent investment in defence and steel. Further locations in Scotland, Wales and Northern Ireland will be announced, because there is not only a defence dividend from our uplift in defence spending, but a Union dividend, strengthening our United Kingdom.

ADS analysis indicates that the defence industry workforce could grow by 50,000 people by 2035, when defence spending increases to 3% of GDP. To ensure that the UK can take full advantage, we must ensure that we have the workers with the right skills to fulfil those roles, so I am today announcing the biggest ever investment in defence skills: £182 million of new Government funding to establish five defence technical excellence colleges, so that we can promote to over 800,000 school pupils the benefits of a career in the defence industry; and our new defence skills passport, which will make it easier and faster for veterans and workers in other industries to move into the defence sector.

Over the past few years, defence firms have expressed growing concerns about attending jobs fairs. The harassment and intimidation to which they have been subjected has forced companies to cancel events on university campuses. The campaign to boycott and target defence firms misunderstands the purpose of deterrence. We know the full measure of freedom and security in Britain because of what our defence industry does. The strategy will help the industry to attract the talent it needs by creating a dedicated presence on the UCAS website, a new defence apprenticeship and graduate clearing system, and a defence university alliance to strengthen careers in the sector.

The war in Ukraine reminds us that innovation is the central pillar of deterrence. To ensure that we meet our objectives of better capability and increased growth, we are committed to spending at least 10% of our equipment budget on novel technologies. The newly established UK Defence Innovation is backed by £400 million of ringfenced investment and has the authority to reallocate funding and resources, ensuring a focus on priorities and value for money. Today’s strategy outlines how we will employ UKDI to rapidly produce technologies that give our armed forces an advantage. We will set out the first of the innovation challenges that we want industry to go after, as well as how we will better support firms in testing their innovations.

This Government inherited what the Public Accounts Committee described as a “broken procurement system”. For too long, defence has been burdened by waste, delay and complexity, yet today we know that whoever gets technology to its frontline forces the fastest, wins. We have proved that we can do it for Ukraine; now we must do it for Britain. Our segmented approach to procurement sets ambitious targets to drastically reduce the timescales to get new projects on contract. As part of the biggest shake-up to the Ministry of Defence in over 50 years, we have created the role of National armaments director, and because we want UK firms to win not just at home but abroad, we will improve our export licensing system with a new digital platform, better training for staff, and reformed procedures, including allowing exporters to apply for licences during the bidding process.

Unlike previous strategies, our one is funded. It is also the culmination of months of detailed work and close engagement with industry, academia, and trade unions. Throughout the process, our aim has been to produce a strategy with the defence sector, rather than to it. With a clear plan backed by historic investment, our Government, alongside industry, will now deliver for Britain. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Secretary of State for Defence.

[James Cartlidge (South Suffolk) (Con)]

I am grateful to the Minister for early sight of both his statement and the hard copy document. Before I respond to the statement, may I express on behalf of the Opposition our wholehearted condemnation of the latest drone attack on Kyiv, the largest of the war, with small children among the dead? It is a reminder of why we need to step up and rearm at pace and scale, to strengthen our deterrence in a dangerous world.

The strategy’s statement of intent, published last December stated:

“The Defence Industrial Strategy will be developed at pace...and will be published in late Spring 2025”.

It is now autumn—it has been delayed when we need real pace from the Government, and that is part of a pattern. Some 26 times Ministers promised on the Floor of the House that the strategic defence review would be published in the spring, but it was published in the summer. The defence housing strategy was promised for the summer, and we now understand that it will be published as late as the Christmas recess. Can the Minister guarantee that the defence industrial policy will be published this year?

It is not just Labour’s reviews that are being published far later than promised. The SDR promised that a National armaments director would be in place from 1 April 2025. On page 6, and as the Minister just said, the defence industrial strategy states that

“we have created the role of National armaments director”.

If the Government have created the role, could they kindly tell us the name? Is Andy Start the interim NAD, or is he the new permanent empowered NAD? If so, is he on his previous salary, or the much higher one for the new role? Key appointments and strategies—months late. War is changing rapidly, but Labour is moving far too slowly.

On the contents of the defence industrial strategy, we welcome further measures to boost the skills base of our defence sector. While we will wait to see the full details of the growth deals, we strongly share the Government’s goal of spreading the prosperity benefits of defence around the United Kingdom. Can the Minister tell us when those will be up and running, and whether the £250 million investment represents new money that was not previously included in the MOD budget? I also welcome measures to boost defence exports, not least establishing a real Government-to-Government offer, and restoring the defence export team back into the MOD—that is something I was working on, and I am glad the Government are implementing it.

Our main concern about the strategy is that it lacks the ambition to fire up our defence industrial base at the scale and pace required, at a time when the threats we face are so stark. The blunt reality is that, for all Labour’s talk, actual procurement has been largely on hold since the election, with the now notorious written answer confirming in spring that the Government had purchased just three new drones since the election last July. Quite simply, they need to start signing actual capability contracts. Thousands of jobs are at stake in some of those major procurements that were meant to have been resolved in the SDR, but on which we still await a decision.

For example, on Friday I had the pleasure to visit Leonardo in Yeovil, the cornerstone of UK military rotary. It is clear that the New Medium Helicopter procurement is critical to its future. When I announced the NMH competition, I deliberately strengthened tender scoring to support defence jobs here in the UK. Are the Government still committed to NMH? If so, when will they give the green light? We hope that will be at the Defence and Security Equipment International. For that matter, when will we see further progress on Skynet, the Red Arrows replacement, M270 artillery and the many other key decisions that the industry is waiting on?

We want to see pace in procurement, not endless dithering and delay. However, we all know the reason why the waiting goes on for so many UK defence companies, large and small: the Government have not prioritised boosting defence spending meaningfully in the near term. Instead, they use smoke and mirrors to inflate what appears to be going into the MOD. For example, the Government reclassified the intelligence budget into defence, so that they can claim to be spending 2.6% by 2027, when the reality is that the MOD budget—that which actually funds the equipment plan—will be equivalent to only 2.2% of GDP in that same year.

While key procurement decisions continue to be put off, tomorrow Labour will plough on as fast as possible with surrendering sovereignty of our critical defence base on Diego Garcia at a cost of £35 billion. The first payment is of £250 million next year and I can safely say that, instead of giving that to the Government of Mauritius, we would spend the money on rapid procurement of drones and counter-drone tech for the British Army from our brilliant British defence SMEs.

That is what we wanted to see from today’s strategy—the delivery of a strong, sovereign drone industrial base, and the same for space, rotary, military vehicles and so many others, as well as artificial intelligence and tech. Warm words delivered late are not enough. We need to see a real-world ramping up of the defence industrial base, with serious investment and not smoke and mirrors, the prioritisation of UK defence companies, and a rapid boost in our ability to deter the rising threats we face.

[Luke Pollard]

I think the shadow Defence Secretary really wanted to welcome this strategy, but is finding it difficult, because the politics have got in the way. I will deal with some of that, but first let me say that I am grateful to him for his words about the attack in Kyiv. It is so important that, although we may disagree about some things across this House, there is strong cross-party support against Putin’s illegal invasion. That must never wane.

I suggest politely to the hon. Gentleman that the mess in defence procurement that we inherited was one that he was in charge of when he was in government. It is, therefore, a bit cheeky of him—though, generally speaking, I like cheekiness—to raise these questions. The platforms that he asked about should have been sorted out under his Government, but never were. He knows for sure that our investments will be in the defence investment plan we will publish later this year. He also knows that for the national armaments director, recruitment is well advanced—we have appointed Andy Start as the interim NAD, but it is important that we get the right person for the role. We will continue that process. The shadow Secretary of State also asked about defence growth deals, and that is new money. He also knows that we have signed 900 deals for defence procurement contracts since the election. We will sign more on the back of the defence investment plan later this year.

The hon. Gentleman also accuses us of dithering and delay, but I fear that that is political projection from the failures of his time in government. We have a clear increase in defence spending and a clear strategy published today that directs that increased defence budget at British companies, that backs British SMEs and that creates the skills that our industry needs. I know that he wants to back it. I know that he is passionate about drones, which is why I know that he will back our doubling of funding for drones and autonomous systems in the SDR. I say to him politely: this is a huge opportunity for British businesses up and down the country, in every single nation and region of our land, and the strategy sets out the objectives and opportunities. I hope that, on reflection, he will be able to welcome the strategy thoroughly and to give it full-hearted support, because our industry deserves the support of this House. It has the support of this Labour Government, and we will continue to increase defence spending, directing more of it at British businesses.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Defence Committee.

--- Later in debate ---

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I welcome the Minister’s announcement and advance sight of the Government’s defence industrial strategy, which rightly seeks to strengthen our sovereign capabilities and to bolster British defence businesses. One element of the strategy is offsetting, as set out on page 7 of the document, whereby contracts with overseas companies will lead to British jobs and novel technologies. The Minister will be aware, however, that while the practice is used in other nations, previous attempts have been abandoned, because they have led to increased costs and complex contract problems. How will the Minister ensure that the Government get the details correct, that the practice will indeed benefit British workers and that the costs are not merely loaded on to other contracts?

[Luke Pollard]

The offset policy that we will shortly consult on with industry provides not just the opportunity for us to bring our industries closer together, but means that in circumstances where we have to buy from a foreign provider, which could be because of quality or specific opportunities, we have the ability to then invest more in UK businesses. This is commonplace and has featured in the Norway deal and in procurement by the Australian Government and South Korea. It is a model that works and it creates an environment where we can mesh our industries together more closely with those of our allies, helping to share research and development costs for new platforms and ensuring that when we are not able to spend money on British purchases, British industry still benefits from increased skills and increased investment in novel technology. This is an area that will directly benefit UK firms and our entire defence ecosystem, especially with those investments in skills, which will last a lifetime for the workers involved and show a real defence dividend.

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Helen Maguire (Epsom and Ewell) (LD)]

I thank the Minister for advance sight of the defence industrial statement. I welcome the announcement today of the new defence industrial strategy because for too many years, the Conservatives chose to ignore the challenges across our defence industrial base. In light of the threats that we face from an imperial Putin and other revisionist powers, it is right that this Government have a serious approach to the defence industrial base in our country.

The opportunities offered through the defence skills passports will add vital channels for people who are already in employment to make the transition to the sector. UK businesses are playing a vital role in supporting military operations in Ukraine, yet we know that many businesses operate internationality. Will the Minister ensure that all British individuals working in the defence sector in offices abroad will also have the skills that they need to support our allies? As the need to work closely with our European allies continues to grow, will he provide an update on what progress the Government have made on securing the UK’s access to the EU Security Action for Europe fund?

It is vital that we properly incorporate small and medium-sized companies into the defence supply chain across Britain. While I welcome the Government’s commitment to a new defence office for small business growth, will the Minister set out how the new office will effectively support the integration of small and medium-sized companies into supply and procurement?

It is crucial that the UK is prioritising spending its money at home and with the best businesses. To create a forward-thinking defence industry, will the Minister support an innovative approach to the development of new defence capabilities that continue to give businesses opportunities to innovate, even when the product is in use?

While the Type 26 deal with Norway is a positive step in working closely with our allies, will the Minister confirm that the delivery timeline for expanding the UK’s own Type 26 fleet will not be delayed?

Finally, last week my hon. Friend the Member for St Ives (Andrew George) asked the then Foreign Secretary to assure the House that the Government would not award a £2 billion contract to Israeli defence manufacturer Elbit, to which he replied with a resounding yes. Will the Minister reconfirm that position today?

[Luke Pollard]

I thank the hon. Member for welcoming the strategy—it is good to see cross-party support for our defence industry. I also welcome her words about the support that we provide to Ukraine. A lesson that we are learning from the war in Ukraine is that we can procure faster, better and more effectively using increased freedoms. That is precisely the lesson from our work supporting our Ukrainian friends that we are seeking to apply in order to support UK armed forces.

Negotiations on UK participation in SAFE are led jointly by the Cabinet Office and the Ministry of Defence. We will seek to continue those conversations. There needs to be provision of value for money for the British taxpayer and opportunities for British businesses, and I am confident that the discussions will be productive.

The SME office that we are seeking to create is one way of helping those small businesses that feel that they have an innovative project for defence, but struggle with the labyrinthine bureaucracy and confusion about who to go to. Having a one-stop shop that enables people to access those contracts and navigate the process will be a real boost for SMEs selling their products into the Ministry of Defence.

The hon. Member is right about the need for spiral development, but in reducing the contracting times, we need to be alive to the fact that the technologies that we procure need to be spiral developed at pace, so that we do not have a legacy system that then gets spiral development many years later.

On the hon. Member’s two final questions, the Type 26 deal with Norway is a superb boost for shipbuilding on the Clyde. Discussions with our Norwegian friends have already started about the build slots, but the Royal Navy will receive our Type 26 frigates in the 2030s as planned. No decisions have been made about the recruitment contract that she mentioned. The intention is to make a decision in February 2026, but I have heard what she said in relation to that.

[Patricia Ferguson (Glasgow West) (Lab)]

On Thursday, I had the pleasure of visiting BAE Systems in my constituency with the Prime Minister. I spoke to many of the apprentices there, who are looking forward to a very long and secure future in their jobs. Can the training academy model used at Scotstoun be considered for integration into the defence academies? Might Glasgow be one of the locations for such an academy, presumably following discussions with the Scottish Government?

[Luke Pollard]

I thank my hon. Friend for championing the work that takes place at Scotstoun. In both Govan and Scotstoun, we have an incredible workforce building the world’s best anti-submarine warfare frigate, and I am very glad that they have been getting such a lot of attention since the Norway deal, because they deserve it. The skills academy that BAE has built on the Clyde, as well as the skills academy it has built in Barrow for the submarine build work, are best in class. They really provide an opportunity to skill people up for a lifetime of opportunity, and they are precisely the types of investments that we want to see more defence companies make. I will take her question as an early bid for one of those colleges. I look forward to continuing work with her and other Glasgow MPs on how we make the most of the Type 26 project.

[Dr Andrew Murrison (South West Wiltshire) (Con)]

The Swedish Archer self-propelled gun is in the process of replacing the AS-90, and it will itself be replaced by the German Remote Controlled Howitzer 155 system. Can the Minister say when the in-service date of the Howitzer will be? How much UK componentry will be in it? How many UK jobs does he anticipate will be generated by it?

[Luke Pollard]

It is entirely right that we donated the AS-90 platforms; nearly all of them are now in operation with our Ukrainian friends. That was the right decision, which was originally taken by the right hon. Gentleman’s own party, supported by the Labour party. It is right that we have transferred those. The Archer is a good platform that will provide interim capability; I can get him the stats, and I will write to him with further details. It is absolutely right that we equip our forces with the latest technologies and do so where possible by procuring with our allies to reduce the R&D costs and increase the real benefit from them.

[Alex Baker (Aldershot) (Lab)]

I welcome the defence industrial strategy. In Aldershot and Farnborough, we have a strong ecosystem that includes the home of the British Army, Standing Joint Command, QinetiQ and a hub of amazing SMEs on Cody technology park, so I am really pleased to see the Government acknowledging my community’s role in putting the UK at the cutting edge of defence innovation in this strategy. I am also pleased to see regional investment through the growth deals. What assessment has the Minister made of quick-win places such as Aldershot and Farnborough that are already delivering for the Government on defence but, with the right extra support and a brief from Government, could do even more?

[Luke Pollard]

I thank my hon. Friend for championing her local businesses. Her constituency is not only the home of the British Army, but an incredible base for innovation and advanced technologies. There are real opportunities to grow this sector further in her constituency and across the UK, and the defence industrial strategy seeks to do that by directing more of the increase in the defence budget at British-based firms and investing in the skills required. With a constituency as hungry and ambitious as hers, we will need even more skills. That is why the investment in FE colleges, schools and university partnerships is so essential in providing those skills. I am happy to meet her to discuss this matter further.

[Stuart Anderson (South Shropshire) (Con)]

I congratulate the Minister on his promotion. I have just returned from the US with the NATO Parliamentary Assembly, where we reviewed disruptive technology from AI to quantum and saw how it has a chance to change the defence industrial base. What consideration of that fast-moving technology is there in this defence industrial strategy?

[Luke Pollard]

I thank the hon. Gentleman for his question and for championing novel technologies. The £400 million that we have allocated to UK Defence Innovation is intended to champion those disruptive high-end technologies, but we have also been clear that we want to spend 10% of our equipment budget on those advanced pieces of technology. We also need to support the wider R&D ecosystem that supports those technologies, which is why we also make announcements in the strategy about supporting our university and research partnerships that deliver them. Certainly, with US projects relying in many cases on British technology, there is a really strong ecosystem for learning the lessons from Ukraine and maintaining a technological edge. There are real opportunities for UK businesses to do more, and the more links we have with our US friends on those advanced technologies and R&D, the better.

[Dame Chi Onwurah (Newcastle upon Tyne Central and West) (Lab)]

I welcome the Government’s commitment to support for Ukraine, to our security and to our regional economies. The north-east sends proportionately more of its young people into the armed forces than any other region in the country, yet the Ministry of Defence spends less with our businesses and industries than it does with any other region, despite our fantastic, high-value advanced manufacturing. It appears that we have not been offered a defence growth deal, so will the Minister meet me and stakeholders to address this question urgently? My right hon. Friend the Member for Liverpool Garston (Maria Eagle) had agreed to do so; will he make that commitment?

[Luke Pollard]

I replied to the debate on defence in the north-east only a few weeks ago, and I am very happy to meet my hon. Friend to look at that issue. This is not just about how we back the current defence industries that exist right across the country, including in the north-east; it is about how we provide routes for firms that might not think of themselves as defence companies to sell their products and services into defence. Making those routes easier to navigate, especially with the new SME offer, will greatly support many of the businesses in my hon. Friend’s constituency. I am happy to meet her and her regional colleagues to make that case further.

[Steve Barclay (North East Cambridgeshire) (Con)]

The Government said over the summer that the Dreadnought programme was on track, despite the fire last year at Barrow, the challenges of covid and the other Government programmes that are running delayed. However, there is a lot of latitude in saying that the programme will be delivered in the early 2030s. Is the Minister able to clarify in which year the first vessels will be in service? That has significant implications for the length at sea of existing submariners.

[Luke Pollard]

I thank the right hon. Gentleman for his question, and in particular for framing it around our submariners. The Secretary of State and the Prime Minister have both been to zero-day events, at which our nuclear bombers return to base after many months away. Their tours are far too long, and to ensure we can bring those down, we need to not only bring on the new Dreadnought-class submarines but make sure that the submarines that are in refit—the Vanguard class—get to sea faster. We are making efforts to deliver both those things. It is difficult for me to give the full in-service dates on the Floor of the House, but I am happy to write to the right hon. Gentleman with some details that I may be able to publish.

[Callum Anderson (Buckingham and Bletchley) (Lab)]

I thank the Minister for his statement. I welcome this industrial strategy, which—as my hon. Friend the Member for Slough (Mr Dhesi) said—demonstrates how closely aligned a strong domestic defence sector is with our economic security and sovereignty. Can the Minister add a bit more detail about what assessment his Department has made of the potential further export opportunities arising from this industrial strategy, which will strengthen not only UK economic growth but our economic and defence relationships with our allies?

[Luke Pollard]

I have just returned from South Korea, where I held a number of discussions with Government Ministers about export opportunities and, importantly, partnerships—about how we can use British ingenuity and expertise in support of our allies’ generating capabilities, which benefits all of us in a win-win situation. There are export opportunities across every single sector of British defence manufacturing. In bringing defence exports into the Ministry of Defence, we aim to align the infrastructure that we have within the MOD, both in our overseas representation and in our expertise, to power those deals so that we can announce more deals like the Type 26 deal and the £1.6 billion lightweight multi-role missiles contract, with missiles being made in Northern Ireland and exported to Ukraine. There are huge opportunities for us to do even more, and it is good to have my hon. Friend’s support for powering up those exports, especially for those SMEs that could be the powerhouses of the next-generation technologies.

[Steve Darling (Torbay) (LD)]

I am sure that the Minister, as a fellow Devon MP, will be only too well aware of our thriving high-tech cluster and the support it provides to the defence industry from its base in Torbay. What assurance can the Minister give our high-tech cluster in Torbay that it will be taken account of as this strategy develops, so that it can play its part in supporting our nation’s defence?

[Luke Pollard]

As a Plymouth MP, I know that the success of the defence industry in Plymouth is about what happens not just in the PL postcode, but in the wider regional ecosystem. Torbay, especially with its marine technology, has an awful lot to offer. An important part of how we power growth is ensuring that the Plymouth growth deal and, indeed, all the growth deals that we have announced today benefit the wider region, and not just the particular locations. The increase in skills and the focus on buying British from British-based firms will help businesses right across the country, including in the hon. Member’s constituency.

[Catherine Atkinson (Derby North) (Lab)]

This morning, I was at the Nuclear Skills Academy in Derby. It is a partnership between Rolls-Royce and the University of Derby that teaches the skills needed to create the reactors that power our submarines, and it delivers 200 apprenticeships a year. The defence industrial strategy delivers the biggest investment in defence skills in decades. Can the Minister tell us more about how it will help smaller defence suppliers to secure the skills that they need, too?

[Luke Pollard]

I am grateful to my hon. Friend for raising the Rolls-Royce skills work, because Derby is one of the best-in-class examples in this area. That company can invest in its people because of the long-term security that this Government have provided with the multibillion-pound commitment to buy new nuclear reactors from Derby for our nuclear submarines. Our skills investment is not just about the primes investing in skills for that single business; it is about the skills ecosystem, so we must invest for all the suppliers and SMEs as well. There is no point in primes having full apprenticeships if the suppliers they buy from, which are essential to the end product, do not have enough skills. That is precisely why skills are at the very heart of the defence industrial strategy we have announced today. Exemplary examples like Rolls-Royce are superb in delivering those skills.

[Ben Obese-Jecty (Huntingdon) (Con)]

I place on record my excitement at seeing RAF Wyton in my constituency directly mentioned in the defence industrial strategy. Last week, I was at RAF Wyton for a hugely successful discussion on its future as a defence technology cluster, with senior officers from the cyber and specialist operations command, the leadership of Huntingdonshire district council and planners from the Cambridgeshire and Peterborough combined authority. I invite the procurement Minister and the Defence Secretary to visit RAF Wyton—I believe they may be due to anyway—not only to see the tremendous work that defence intelligence does, but to see its suitability as the defence, energy and capability resilience centre of excellence. That would address my fears that the land may be sold off for housing by the Defence Infrastructure Organisation by accident in the interim. I also invite them both to the Huntingdonshire defence showcase right here in Parliament next month.

[Luke Pollard]

I thank the hon. Member for championing his constituency. There is a real opportunity at RAF Wyton, not just in terms of the military purpose that defence intelligence provides there—that is obviously difficult to talk about in the public space—but in terms of the spin-offs and industrial opportunities that the wider estate offers. I would be happy to attend those events, and I look forward to continuing the conversation about Wyton and returning to visit there soon.

[Mr Luke Charters (York Outer) (Lab)]

Today’s blockbuster strategy completely rewires many of the institutions at the heart of our defence financing: the National Wealth Fund, the British Business Bank and UK Export Finance. With the news that the Chinese bond market may now be open to Russian defence companies, does my hon. Friend agree that we need to keep innovating and keep evolving how we do defence financing to support our own industrial base?

[Luke Pollard]

First, I thank my hon. Friend for the work he has been doing on how we open up finance to small businesses in particular and how we deal with some of the policies that restrict access to finance for those firms that work in defence. He is absolutely right that internationally we are seeing more of those nations that sometimes oppose our values come together, but we need to make sure we are innovating with our finance and that SMEs have access to capital. That is one reason why we are seeking to create a more predictable pipeline of acquisitions that enables businesses, especially small businesses, to borrow to invest.

[Dave Doogan (Angus and Perthshire Glens) (SNP)]

If Scotland is lucky, we will get a per capita share of the £250 million in the growth deal, which is barely twice what the SNP Scottish Government have invested in the skills academy in BAE alone. However, the omens are not good, because Scotland is routinely short-changed in defence expenditure. The London Government are spending more in the south-east of England than they do in Wales, Scotland and Northern Ireland put together. The Minister’s own region seems set to benefit, and I am not sure where the Union dividend is between Portsmouth and Yorkshire. Seeing as he is holding the pen and writing the cheque, which hopefully will not bounce, will Scotland at the very least get its per capita share of that £250 million?

[Luke Pollard]

We hear such negativity from the Scottish National party. On a day when we have announced a growth deal for Scotland, creating skills and infrastructure, rather than welcome for that investment, we hear more negativity. It continues the pattern that we have seen from the SNP in Scotland: not interested in defence, not interested in defence jobs, not interested in the growth that that brings. Only when there is a win do SNP Members finally come out and say something positive. There is a lot to be done in Scotland to grow that sector. We are backing the Scottish defence industry, and I hope that the hon. Gentleman’s party will do so soon.

[Baggy Shanker (Derby South) (Lab/Co-op)]

We know that when we back British jobs, British industry and British innovators, communities across our country reap the rewards. What steps will the Minister take to ensure that our proudly home-grown small and medium-sized enterprises can be supportive in delivering this industrial strategy?

[Luke Pollard]

I have seen some incredible innovation in our defence SMEs. Such companies have the opportunity to transform the warfighting capabilities of our forces and to support our allies, but for far too many of them it has been too difficult to find the person who is awarding the contract, to navigate the process, to understand how to access the forward supply, or even to get security clearance to understand what their competitors are doing. This defence industrial strategy seeks to rectify those problems by creating a single new one-stop shop for SMEs so that all of them, in every part of the UK, can access MOD contracts and we can benefit from their innovation and agility.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

I imagine that the timing of the defence industrial strategy is linked to the Defence Security and Equipment International conference that is happening in London this week, so could the Minister have a word with the Mayor of London, emphasising the importance of that event for the defence industrial strategy?

The brilliant brains in Malvern in my constituency have come up with something that is very topical and timely: a better way to deal with those who seek to spoof and jam the GPS signal. It was delivered with MOD funding, and is being sold to other countries around the world, but the UK does not seem to be buying it. Could the Minister look into that specific issue?

[Luke Pollard]

If the hon. Lady writes to me about it, I will certainly look into it.

This morning I was on the bridge of HMS Mersey, one of our offshore patrol vessels, which is moored outside the ExCeL centre in east London as part of the DSEI conference. This is a huge opportunity for growth—and, of course, there are 10,000 defence jobs in London and an opportunity to grow even more in every part of the UK, including the nation’s capital.

[Anna Gelderd (South East Cornwall) (Lab)]

I welcome the Minister’s statement, and congratulate him on his new role. It is fantastic that Plymouth has been named as the site of one of the defence growth deals; this is very positive for South East Cornwall, given our close ties with the workers who cross the River Tamar daily using Tamar crossings, and the autonomous naval vessels training in our local Cornish waters. In fact, 23% of Babcock’s Devonport workforce live in South East Cornwall. Will the Minister outline how the positive impacts of this announcement will be felt throughout the region, and will he assure me that local housing and transport improvements will be considered critical to the successful delivery of this important deal?

[Luke Pollard]

I thank my constituency neighbour for her advocacy. All the growth deals that we have announced today, including the Plymouth growth deal, will help the wider region in each location, not just the specific location, to build a skills base that will help the suppliers as well as the primes in those locations. My hon. Friend is right: we also need to look at skills and at housing. The Barrow model, for instance, is a good one for us to look at, because Barrow needs to grow bigger in order to build the submarines that the Royal Navy needs. That is not just about the shipyard, although investment from this Government is going into it; it is about housing, education and health in that community. This is precisely the model that is being followed for other locations across the UK, including those in the south-west.

[Several hon. Members rose—]

--- Later in debate ---

[Richard Foord (Honiton and Sidmouth) (LD)]

Over the summer I joined the Chief of the General Staff on a visit to Supacat at Dunkeswell in Devon. I learned there that to keep supply chains active, manufacturers need continuous orders that keep British-made capabilities sharp. I am pleased to hear that Plymouth is going to enjoy a cut of the £250 million pledged for defence growth deals, but can the Minister let us know about the next order for the incredible Jackal 3 high mobility transporter?

[Luke Pollard]

As the hon. Gentleman knows, the Jackal 3 is made in Devonport, in the constituency that I represent. It is a good platform. We will be making further announcements about orders across a whole range of land vehicles, which companies across the UK will be able to bid into. The work on the Jackal 3 continues, with the long wheelbase variants being produced at the moment.

[Richard Baker (Glenrothes and Mid Fife) (Lab)]

Can the Minister assure me that, along with the huge defence contracts that this Government have already secured for shipyards in Scotland, this strategy will also offer great opportunities for fabrication yards, including at Methil in my constituency? It was saved from closure by Labour Ministers, and its brilliant workforce are already delivering a new £8 million Government contract under its new owners, Navantia UK.

[Luke Pollard]

I thank my hon. Friend for raising that example. Our £8 million investment will create the facility for the build of the Royal Fleet Auxiliary’s new fleet solid support ships. That is an important part of keeping our Royal Navy supplied well into the future. I am grateful that he spoke about manufacturing, because there are huge opportunities in this strategy for businesses like the ones he mentioned.

[Jim Allister (North Antrim) (TUV)]

I very much welcome the indication that Northern Ireland will participate in the defence growth deals, but will the Minister explain the interplay, if any, with the devolved Government? I ask because we in Northern Ireland have the misfortune of having an anti-British and anti-British-defence Economy Minister in the shape of a Sinn Féin Minister. Can I have an assurance that she will not be able to thwart any of Northern Ireland’s benefits under this deal? I ask that in the context that today, sadly, the MOD had to abandon its jobs fair participation in Londonderry, courtesy of Sinn Féin pressure.

[Luke Pollard]

We are proud that the growth deals will be in every single part of the United Kingdom, including Northern Ireland. The precise location of those in the devolved Administrations will be set following discussions with those devolved Administrations, including in conjunction with those in Northern Ireland. We are absolutely clear that there is a growth opportunity to provide new, well-paid and good jobs to people there. That is why we will work with partners in Northern Ireland to find the right location and to invest in the skills that the industry there needs.

[Graeme Downie (Dunfermline and Dollar) (Lab)]

I thank the Minister for his statement, as well as for last week’s news of the significant infrastructure investment in the Rosyth dockyard in my constituency, which is highly welcome for jobs in the area. As the Minister said, the real defence dividend will be the long-term skills. We have seen skills devolved to the Scottish Government, but they have utterly failed when it comes to defence skills because of their absolutely childish attitude towards the defence industry. Seventy-two hours does not make up for 20 years of failure. Will the Minister meet me to discuss options to ensure that skills, and the delivery of skills opportunities in Scotland’s defence sector, can be delivered for people in my constituency and across Scotland, so that they can take advantage of the long-term opportunities and sustainable jobs that exist?

[Luke Pollard]

Scotland has good representatives on this side of the House: representatives who value defence jobs in Scotland and the people who work in those jobs, and who see growth opportunities. I know that there are huge opportunities in Rosyth, in my hon. Friend’s constituency—not just the submarine recycling work and the build of the Type 31 frigates, but supply chain opportunities for other platforms. We will continue to invest in Scotland and I hope that, after the Scottish Parliament elections, we can find a new partnership between the Scottish Government, whoever may form that, and the UK Government, so that we have less politics and more focus on growth.

[Sir Julian Lewis (New Forest East) (Con)]

Now that the killer in the Kremlin has reinstated the serious prospect of all-out war on the continent of Europe, does the Minister accept that this places a premium on national autonomy in our procurement process? In future with procurement issues, will the Government make it clear to what extent we can proceed with acquiring the necessary munitions, irrespective of what is happening to the allies with whom we might normally co-operate?

[Luke Pollard]

I thank the right hon. Gentleman for his customarily thoughtful question. He will know of our intention to build six new munitions factories, including a new energetics factory, precisely because there is a shortage and there are concerns about supply and resilience. He will also know that we are seeking to onshore a number of capabilities. The defence industrial strategy deals with a number of those capabilities, especially around national security, which we want to see enhance our sovereign capability. I encourage him to read that part of the strategy shortly.

[Chris McDonald (Stockton North) (Lab)]

This defence industrial strategy shows that we finally have a Government who take our British defence industry seriously. A foundation of domestic orders enables British businesses to compete effectively for export orders. Can the Minister outline the nature of the support from UK Defence Innovation that our defence and defence-adjacent SMEs might need in order to help them commercialise their technology? I hope he will consider Teesside and the north-east for a future skills academy and any future growth zone deals.

[Luke Pollard]

I thank my hon. Friend for his advocacy for his community. There are certainly opportunities in every part of the country, including on Teesside, for defence companies and for companies that are not selling into defence currently, but which have an opportunity to do so. The £400 million investment in UK Defence Innovation is designed to go after the most innovative and disruptive technologies. Primes have a good role in this, but so do SMEs. I encourage all businesses to lean into that opportunity, and to really go after the increased funding and the export and contractual opportunities that that will provide.

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

The Minister has made a number of announcements about skills in the defence industrial strategy, which is much appreciated, but can he explain how they will integrate with existing skills frameworks and whether the industry will be given the flexibility to develop new courses at the “wartime pace” that the strategic defence review referenced?

[Luke Pollard]

The hon. Gentleman is exactly right. For instance, the work that ADS is doing on its new curriculum is really interesting and exciting. There is a real opportunity to go after the skills challenges nationwide. In order to give the men and women in our armed forces the kit they need and to export to our allies, we need to invest more in skills. It is something in which this nation has under-invested for far too long. That changes with the defence industrial strategy today.

[Douglas McAllister (West Dunbartonshire) (Lab)]

I welcome the Minister’s statement. The defence industrial strategy will strengthen our security and grow our economy. These reforms will boost jobs in communities such as my West Dunbartonshire constituency, which is sandwiched between the £250 million investment in Faslane and the £10 billion contract with Norway, guaranteeing shipbuilding on the Clyde for years to come. Will the Minister agree to meet me, the leader of my local authority and the chief executive of West Dunbartonshire council to explore the opportunities for bringing further defence investment and employment to West Dunbartonshire?

[Luke Pollard]

I would be very happy to meet my hon. Friend and Councillor Rooney, his local authority leader. There are real opportunities to look at some of the sites, especially given the investment in nuclear technology in my hon. Friend’s part of the world. I know that he is seeking engagement with the Department for Business and Trade about the locations in West Dunbartonshire, and I am happy to meet him to discuss this matter further.

[Dr Caroline Johnson (Sleaford and North Hykeham) (Con)]

In his opening remarks, the Minister mentioned the importance of the strategic defence review to the industrial strategy. When that strategy was announced, some unions, organisations and businesses were given preferential access to it, but the Minister has consistently refused to say who and when. Written questions have received flannel as answers, and freedom of information requests are now almost a month out of date. What is the Minister trying to hide, and when will he answer the question?

[Luke Pollard]

On a day when the hon. Lady could be celebrating the work of SMEs in her constituency and talking up British growth, she is here again with a complaint. There is a clear process with the SDR, which we followed, on the predication of the previous Administration. We have followed a clear plan today to brief the Opposition and to make sure that it is clear that we are backing British businesses. I wish she had taken the opportunity to do so as well.

[Llinos Medi (Ynys Môn) (PC)]

SMEs like Affinity at RAF Valley, in my constituency, offer apprenticeships that equip young people with crucial engineering skills. It is vital that the defence industrial strategy’s new clearing-style system for apprenticeships works with local SMEs and colleges to expand these opportunities. Can the Minister clarify how the system will operate in Wales, where apprenticeships are devolved?

[Luke Pollard]

That is precisely why we are seeking more engagement on defence with the devolved Administrations. Defence is a reserved matter, but skills are devolved, so we need to form a new partnership between the different Governments across the United Kingdom, including in Wales. The skills around RAF Valley are really very impressive, and there is huge opportunity for growth. If we get this right, we will create more good, well-paid jobs in the hon. Lady’s constituency and across Wales—an opportunity that this Government are going to seize with both hands.

[John Cooper (Dumfries and Galloway) (Con)]

I am delighted that the face of procurement is changing and that, hopefully, we will see a telescoping of the time between the flash of inspiration and the bang of kinetic effectors, as they say. The neutral vendor framework for innovation is a very important part of that, but will the Minister give me an assurance that the Business and Trade Committee’s recommendation—that we have metrics so that we can measure outputs and not simply inputs—can be brought forward?

[Luke Pollard]

I thank the hon. Member, and I agree with him. I am a big fan of a data-led dashboard, and the Ministry of Defence will be producing those, because when it comes to procurement we need a greater data-led approach and a focus on prioritisation. We will be going after areas that have fallen behind, which I am afraid the last Government failed to do. That is our new approach. I have already met the Chair of the Committee, and I look forward to meeting him further to discuss how we can take on board the recommendations to make sure we get this system right.

[Mr Will Forster (Woking) (LD)]

To provide certainty for the whole defence sector, but particularly for the small and medium-sized businesses in my constituency, will the Minister confirm when negotiations on the UK joining the €150 billion Security Action for Europe will conclude and a decision will be made, so that those businesses have the certainty and long-term security that this strategy is meant to provide?

[Luke Pollard]

The EU-UK reset deal signed by the Prime Minister recently opened the door to discussions on SAFE, and the Cabinet Office and the MOD are jointly working on those discussions to make sure they happen properly. We need to make sure we achieve value for money, and that we build and support UK businesses selling products to our European allies. There is a huge opportunity here, and we will continue those discussions. I do not want to set an arbitrary deadline, but those discussions are ongoing and I hope the Cabinet Office and the MOD will be able to come back with good news in due course.

[Robin Swann (South Antrim) (UUP)]

I welcome the Government’s announcement of a dedicated procurement hub in Northern Ireland to support our SMEs, although I note that no location has been announced in Northern Ireland. Can I remind the Minister of the excellent opportunity that the Aldergrove base in my constituency presents and how it would be an excellent location for an uncrewed systems centre? Will he meet me and the leadership of Antrim and Newtownabbey borough council to develop that opportunity further?

[Luke Pollard]

There is no better champion than the hon. Gentleman; I have met him a number of times when he has spoken about his constituency. I agree with him that there is real opportunity in Northern Ireland for defence investment, and I look forward to the continued discussions with the Northern Ireland Executive, as well as with local communities, Members of Parliament and councils, to make sure we find the right locations for the investment and that Northern Ireland gets the defence growth deal we have announced today—and gets it soon.

[Dr Al Pinkerton (Surrey Heath) (LD)]

I thank the hon. Gentleman for the statement. I am really excited about the emphasis on skills. I note the ambitious timetable to create the five academies created by the end of 2026. In the spirit of the cheekiness that he says he admires, can I encourage him to pop over the constituency border from Aldershot to Surrey Heath to find a constituency that would be a ready and expedient site for one of those academies? The site already has Royal Military Academy Sandhurst and Pirbright, and it is the historic home of Chobham armour. Defence is part of our history and our heritage, and I hope it is also part of our future.

[Luke Pollard]

I take that as a strong early bid, and I am happy to talk to the hon. Gentleman about how we can maximise skills in his constituency.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for the incredibly good news that he and the Labour Government have delivered today in this Chamber. Every one of us across this great United Kingdom of Great Britain and Northern Ireland will relish the idea of jobs coming our way.

We in the Democratic Unionist party welcome the defence industrial strategy, acknowledging the need for world-class defence and making the most of our world-class defence businesses. One of those, Thales, employs hundreds of my Strangford constituents, and it has been instrumental in protecting Ukraine. There were some 200 new jobs—including, I understand, 30 apprenticeships—no more than three months ago. With news circulating that defence spending commitments will create a total of 85,000 jobs across the sector in the next 10 years, will the Minister reaffirm the role of Northern Ireland in the industry and indeed in the defence of this great nation?

[Luke Pollard]

Let me be very clear: there are growth opportunities in every nation and region of the United Kingdom, including Northern Ireland. We have today announced a defence growth deal for Northern Ireland, which builds on the incredible skills that we already see in defence companies in Northern Ireland. This Government were very proud to announce the £1.6 billion contract for the lightweight multirole missile, which will be built in Northern Ireland. It will be used to shoot down Russian drones attacking our allies in Ukraine, which is precisely how we can make defence an engine of growth as well as support our security objectives. The workers in Northern Ireland should be very proud of the work they are doing; I certainly am.