Question to the Ministry of Defence:

To ask His Majesty's Government what assessment they have made of the impact of the decision to award the Defence Marine Services Next Generation Contracts to Serco on UK shipbuilding jobs.

The Ministry of Defence (MOD) recognises the importance of supporting UK shipbuilding and undertook market engagement to encourage bids from UK shipyards for the Defence Marine Services Next Generation (DMS-NG) contracts. Despite these efforts, only one compliant bid was received, and Serco, as the prime contractor, was free to select its subcontractors.

The Government remains committed to supporting UK shipbuilding, and recent reforms to public procurement, including the Procurement Act 2023, which came into force in February 2025, provide greater flexibility to prioritise British companies in strategically important sectors. The MOD continues to work with the National Shipbuilding Office to maximise opportunities for UK suppliers in future procurements.

The operational necessity of the DMS-NG contracts and the need to maintain critical maritime capabilities were key considerations in the procurement process, as was programme affordability at the time. However, some £200 million will still be spent through DMS-NG at British boatyards for the maintenance of the new vessels, which will bring benefits to the UK ship repair sector.