Oral Answers to Questions

Maria Eagle Excerpts

Monday 30th June 2025 Commons Chamber

[Sadik Al-Hassan (North Somerset) (Lab)]

8. What steps he is taking to ensure that SMEs are able to participate in defence procurement contracts.

[The Minister for Defence Procurement and Industry (Maria Eagle)]

The Government’s modern industrial strategy, launched last week, announced a 50% increase in MOD spending with small and medium-sized enterprises to £7.5 billion a year by 2028, reversing the downward trend under the previous Government. Our new SME hub will help small firms to access better opportunities, and our reform of defence procurement, along with ringfenced innovation funds, will give SMEs access to the defence dividend. This Government’s increase in defence spending will provide jobs and growth across the UK.

[Luke Murphy]

Basingstoke is home to some fantastic defence SMEs, including Nightball Technologies and Bertin Exensor, but one issue that has been raised with me is that Government procurement agencies cannot specify UK sovereign tech or sole-source contracts, even where UK capabilities exist. That results in lengthy competitive tenders, where there is a high risk that end users do not get the capabilities that they need and equipment is bought from foreign suppliers. Will the Minister meet with me and firms from Basingstoke to discuss how we can prioritise UK defence SMEs over foreign suppliers, especially where UK sovereign tech exists?

[Maria Eagle]

My hon. Friend makes an interesting point. There is some flexibility under our procurement rules to specify national security grounds upon which to make a decision. Half our spend is already through sole-source contracts. I am of course happy to meet him and his SMEs. We are delivering for defence by promoting new procurement models that are easier for small firms to access, and our SME hub will engage directly with SMEs to help them to access defence supply chains.

[Sadik Al-Hassan]

In my constituency of North Somerset, many small and medium-sized enterprises are springing up to support our country’s rearmament efforts. In Nailsea, one such company, 1415 Industries, was recently blocked from opening a business bank account due to blanket prohibitions and excessive delays by retail banks, hindering its ability to organise seed funding and bid for procurement contracts. Will the Minister meet with me to discuss the case of 1415 Industries and the wider problem relating to financial institutions and their interactions with defence SMEs that the case highlights?

[Maria Eagle]

I recognise my hon. Friend’s point, and I will of course meet with him and his SMEs. Over the last six months, the Defence Secretary and I have convened stakeholders from industry and finance to discuss this issue and make it clear that defence is an ethical sector that they should support. The strategic defence review committed us to developing a dedicated financial services sector strategy, which we will aim to publish in spring 2026. That should give us a further opportunity to make sure that the finance industries know what a good investment defence can be.

[Dame Caroline Dinenage (Gosport) (Con)]

Our UK defence industry can have few better ambassadors around the world than our Red Arrows. As the Hawk aircraft comes to an end, will the Minister look closely at the British-designed modular aircraft being developed by Aeralis, because it would support SMEs right across our country, including by bringing around 600 jobs to StandardAero in Gosport and about 1,000 to the south Hampshire area? Surely that would be a much better way to support our national SMEs than opting for the Italian-Russian Yak-130 aircraft, which the MOD is rumoured to prefer.

[Maria Eagle]

I know Aeralis well; I visited it when I was in opposition, as I know the hon. Member for South Suffolk (James Cartlidge) has done, and I have spoken to its representatives since. Of course, an open competition will be held for the new aircraft to deliver advanced jet training and for an aircraft for the RAF aerobatics team, to ensure value for money and positive UK benefit, and I hope that Aeralis will apply for that competition. It will have a very good chance if its product is up to scratch.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for her answers. She is a regular visitor to Northern Ireland and supports the SMEs there, so when it comes to the defence industrial strategy to support SMEs, could she update the House, and myself in particular, on what she and the Government are doing to help SMEs in Northern Ireland to increase jobs and also increase contracts?

[Maria Eagle]

The hon. Gentleman is right to say that I have visited Northern Ireland and its defence sector on a number of occasions, and I hope to return and do so again. The increase in spend that was announced last Monday on the modern industrial strategy for our SMEs to take advantage of—an increase of 50% up to £7.5 billion a year—should give opportunities for some of the innovative companies in Northern Ireland to take advantage of the available money. When our SME hub gets up and running, it will be available to assist small firms in understanding how best to get access to some of the opportunities that that will bring.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

4. What steps he is taking to support defence sector exports.

[The Minister for Defence Procurement and Industry (Maria Eagle)]

In order to deliver for defence and make defence manufacturing an engine for growth, we must improve our export performance. Potential customers want a consistent Government-to-Government offer, so as part of defence reform, a new national armaments director and defence exports office will support defence export campaigns, and responsibility for the promotion of defence exports will be transferred to the Ministry of Defence.

[Gareth Snell]

It is welcome news that MOD is committed to the establishment of a defence exports office. Will the Minister set out what this will mean at home for jobs in constituencies such as mine in Stoke-on-Trent Central, where our proud manufacturing companies stand ready to support UK defence and security?

[Maria Eagle]

It will mean a coherent specialist approach to Government-to-Government agreements on sales of our capabilities being based in the MOD, which has expertise in those capabilities. This is going to mean extra jobs and growth, and that jobs can continue in the UK beyond the delivery of our own domestic orders because there will be export orders to fulfil. That should reap a defence dividend across the nations and regions of the UK as our manufacturing jobs continue to deliver for defence.

[Lincoln Jopp (Spelthorne) (Con)]

Ametek, a defence manufacturer in my constituency, has reported to me that the process of getting a defence export licence has almost ground to a halt in the past 12 months. Could the Ministry of Defence send someone sufficiently threatening round to the Department for Business and Trade—perhaps the Veterans Minister—to persuade it to get a grip of its processes and speed everything up?

[Maria Eagle]

I am sure that we can make representations to that Department to ensure that there is no unnecessary delay in applications for export being granted, where that is appropriate.

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

7. What steps he is taking to maintain the capability of the Red Arrows.

[The Minister for Defence Procurement and Industry (Maria Eagle)]

The strategic defence review recommended that the Hawk T1 and T2 be replaced with a cost-effective advanced jet trainer. The future platform of the Royal Air Force aerobatic team is being considered at the same time, and a Royal Air Force programme team is being established to deliver that capability.

[John Cooper]

The TSR-2 aircraft was a world beater. Unfortunately, the only thing that it could not beat in a dog fight was a Labour Government, who knew the cost of everything and the value of nothing. Will the Minister assure me that we have learned the lessons of TSR-2, and that we will look at the replacement for the Hawk in the light of pressing a British-designed and manufactured aircraft that can sell Britain abroad?

[Maria Eagle]

The Conservative party set 2030 as the Hawk T1’s out-of-service date in its 2015 strategic defence and security review, and it then did precisely nothing to achieve a replacement in the nine years that followed, so I am disinclined to take lessons from the hon. Gentleman’s party on how to replace the Hawk. I assure him that the competition will welcome any bids from UK-based suppliers.

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

9. What steps he is taking to ensure an “always on” approach to the shipbuilding supply line.

[The Minister for Defence Procurement and Industry (Maria Eagle)]

As outlined in the strategic defence review and in the UK’s modern industrial strategy, the Government are committed to supporting an “always on” shipbuilding industry by leveraging our buying power through public procurement and seeking to export our capabilities to friendly nations.

[Graeme Downie]

As the Minister says, the SDR spoke of the need for an “always on” supply of shipbuilding, with the Royal Navy continuing to move towards a more powerful but cheaper and simpler fleet. The Minister has visited my constituency and seen the construction of the Type 31 frigates by Babcock at Rosyth, with the first ship, HMS Venturer, recently floated off. Other ships of the initial five ordered by the Royal Navy are progressing well. When can we expect to see announcements to guarantee the continued always-on supply of shipbuilding, and will she give an update on the need for more Type 31 frigates for the Royal Navy to reflect the flexibility of that platform, as well as the lower cost and faster production achieved by the incredible workforce at Rosyth in my constituency?

[Maria Eagle]

I recognise the benefit that the construction of Type 31 frigates has brought to Rosyth, and I have personally engaged with international partners to try to secure future orders. In addition to any orders that we ourselves may have, exporting that type of capability to our allies and friends is a sensible way of ensuring that we can keep production going at Rosyth.

[Cameron Thomas (Tewkesbury) (LD)]

10. If he will make an assessment of the potential merits of holding cross-party talks on increasing defence spending to 3% of GDP by 2030.

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[Michelle Welsh (Sherwood Forest) (Lab)]

T4. ITP Aero supports over 700 jobs in Hucknall in my constituency. I recently went to visit the site with representatives from Unite to meet those highly skilled workers, who are essential not only in supporting our defence sector, but for protecting our national security. What are this Government doing to ensure that work done under future contracts is completed in the UK, by UK workers?

[The Minister for Defence Procurement and Industry (Maria Eagle)]

I thank my hon. Friend for highlighting the vital role of ITP Aero on some of our most important defence platforms, not least Typhoon and the A400M. The strategic defence review makes it clear that we will back British-based businesses where possible, and ITP Aero is already helping to show that defence is an engine for growth in her community.

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[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

Will the Government raise with the F-35 joint program office or the joint executive steering board the human rights breaches and the possibility of suspending Israel’s access while maintaining supplies to other customers?

[Maria Eagle]

We always keep in mind our obligations under international law, and we obviously discuss matters that might pertain to it among the F-35 nations.

[Martin Vickers (Brigg and Immingham) (Con)]

On Saturday, I had the pleasure of welcoming the Secretary of State to my home town of Cleethorpes, where we witnessed the national Armed Forces Day event. Earlier, he referred to the volunteers who made this possible. My constituent Alex Baxter, whom he met on Saturday, has masterminded the Armed Forces Day event in Cleethorpes for many years. Will the Secretary of State join me in congratulating Alex and his team on a splendid event?