Defence Reform
(3 weeks, 3 days ago)
Written StatementsRead Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Defence (John Healey)
Today this Government are bringing in the deepest reforms in UK Defence for 50 years, which will fundamentally change the way defence operates.
Defence must change to make Britain secure at home and strong abroad. The Government’s recent announcement of the largest sustained increase to defence spending since the cold war—rising to 2.5% of GDP in 2027, with an ambition to reach 3% in the next Parliament—is crucial for our national security. It is also a huge opportunity, and responsibility, for UK Defence.
Alongside this significant investment, must come serious reform: to speed up our decision making, focus on outcomes, secure faster delivery and achieve the best value for money for our troops and taxpayers.
Under the Secretary of State and Ministers, UK Defence will now be led by a strengthened Department of State, a fully-fledged Military Strategic Headquarters, a new National Armaments Director Group, and the Defence Nuclear Enterprise.
Our new leadership “Quad”—the Permanent Secretary, Chief of the Defence Staff, National Armaments Director, and Chief of Defence Nuclear—will drive a defence which is more concentrated on strengthening warfighting readiness and deterrence. They will shift an organisation which too often has been obsessed with process to one focused on outcomes—in which information flows quickly, individual accountabilities are clear, and results are demanded.
The key features of our new system will be:
The Permanent Secretary will lead a more agile Department of State. In line with wider civil service reform, this area will be lean and highly skilled, unleashing the exceptional capabilities within Defence by making the systems and processes around us more efficient and empowering. This area will be responsible for providing policy muscle and clear strategic direction to ensure that Defence is focused on outcomes and delivery. The Department of State will contain a streamlined set of four DG roles reporting to the Permanent Secretary, focused on strategy and transformation, people, policy and finance.
Our armed forces show great courage and collaboration in the work they do on operations to keep our country secure at home and strong abroad. The UK armed forces’ most senior officer, the Chief of the Defence Staff (CDS), will, for the first time since this role was created, now command the service chiefs and head a newly-established Military Strategic Headquarters as the single point of force design and delivery of the armed forces. The new MSHQ will support the journey from a “joint” to an “integrated” force that better harnesses all five domains of maritime, air, land, cyber and space. They will be supported by a small central team integrating across activity and force design, prioritising investment to improve warfighting readiness and lethality.
The National Armaments Director Group will fix the broken procurement system and make defence an engine for economic growth in every corner of the UK. It will bring together teams delivering the national “arsenal”, the Government’s defence industrial strategy and end-to-end acquisition under one leader, the National Armaments Director. This new structure will enable collaboration by bringing together Defence Equipment and Support, the Defence Infrastructure Organisation, the Defence Science and Technology Laboratory, Defence Digital and parts of Defence Support. The group will also include roles focused on international collaboration and exports, commercial and industry, options and commissioning, and corporate, with the Enterprise CIO moving to the group by 1 July 2025. These roles will work together, and with industry, academia, international partners and allies to develop and deliver innovative solutions to departmental problems.
The Chief of Defence Nuclear is responsible for cohering across the Defence Nuclear Enterprise (DNE), in addition to leading the Defence Nuclear Organisation (DNO) and its arm’s length bodies. The DNE unites the Royal Navy, Strategic Command and DNO, with its ALBs including the Submarine Delivery Agency and AWE—the partnership of organisations that maintain, renew, and sustain the UK’s nuclear deterrent which keeps us and our NATO allies safe 24/7. The financial nuclear ringfence ensures nuclear spending is prioritised and allows a focus on delivery and outcomes. Under Defence reform, CDN will act as the clear point of accountability for the ringfence, working closely with industry and the MSHQ finance teams to ensure effective management.
We will have four new budget holders, one for each of the Quad. Funding and spend will be categorised into invest, readiness and operate—with the NAD holding the invest budget and MSHQ responsible for the operate budget and the readiness budget of the frontline commands. Balance of investment decisions will be made across the whole Department, set against Ministers’ strategic priorities to ensure resources match ambitions. The principal accounting officer will delegate multi-year budgets, in line with HM Treasury’s departmental spending settlement, to each area. Financial year 2025-26 will be a transitional year, with quarterly reform programme milestones through the year and the bulk of the transformation complete by financial year 2026-27. The drive to reform Defence will continue throughout this Parliament.
The far-reaching changes in this Defence reform programme will help cut waste, boost British growth and jobs, and fast-track the technologies of the future into the hands of our frontline forces.
This is the start of a new era of UK Defence.
[HCWS 573]
New Further Education College Condition Allocation
(3 weeks, 3 days ago)
Written StatementsRead Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Education (Janet Daby)
My noble Friend the Minister of State for Skills (Jacqui Smith), has made the following statement:
The Government’s first priority is economic growth, which requires a strong skills system, ensuring businesses have the expert workforces they need to grow. This Government are clear through their opportunity and growth missions that ensuring a consistent, skilled pipeline of workers is essential to the delivery of the plan for change. We need to ensure young people and adults have the opportunity to access pathways made available through education and learning. This will in turn help to drive productivity and economic growth—giving all people the opportunity to upskill and reskill to meet employer needs, fill skills shortage vacancies, and improve living standards.
Our ambition is a world class further education (FE) system that delivers for the whole nation and supports these missions. A key part of this is ensuring FE colleges are fit for the future—with better facilities and good quality sustainable buildings.
Following the autumn Budget, I am today announcing details of the investment of £302 million of capital funding to improve the condition of the further education college estate in England. An allocation of £302 million will be provided in financial year 2025-26 to all FE colleges and designated institutions in England. The aim of the investment is to ensure the FE estate is high quality and supports our skills pipeline. All FE colleges and designated institutions will receive a share of the £302 million, which will be directly allocated to them.
FE colleges are given the discretion to decide how to invest the funding in condition improvement priorities across their estates in line with guidance which the Department will publish here: https://www.gov.uk/government/publications/further-education-college-capital-allocation-2025-to-2026.
This funding is part of the £6.7 billion capital allocation the Department for Education received at the autumn Budget. This is a 19% real-terms increase from 2024-25, demonstrating the Government’s commitment to protecting education priorities against a tough fiscal context. Of this funding, £950 million is to support our skills system and provision across England in delivering the skills that will drive economic growth. As part of that investment, I am announcing today that further capital funding will be made available in 2025-26 to support capacity for rising numbers of 16 to 19 year olds in Greater Manchester combined authority and Leeds city council, which will each receive £10 million of post-16 capacity funding. This additional capacity will ensure young people continue in their education and training, spreading opportunities across the country.
[HCWS571]
Cyber-security and Resilience Policy
(3 weeks, 3 days ago)
Written StatementsRead Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Science, Innovation and Technology (Feryal Clark)
Today the Government have published a policy statement on proposed legislative measures to bolster the UK’s cyber-security and resilience.
Our digital economy and essential services are increasingly being attacked by cyber-criminals and state actors, threatening essential public services and infrastructure. This poses a serious risk not only to UK citizens, with core services like hospitals being targeted, but also to the performance of our economy. UK businesses lost around £87 billion from cyber-attacks between 2015 and 2019—that is £87 billion taken from our economy, much of which went into the hands of cyber-criminals.
Enhanced cyber-security is an essential pillar not only of our national security, but of the UK’s economic growth. We cannot have economic growth without stability, and we cannot have stability without national security.
The UK’s only existing cross-sector cyber legislation—the Network and Information Systems (NIS) Regulations—was introduced in 2018 when the UK was still an EU member state. The rapidly evolving threat landscape and changing nature of digital services mean that these regulations need to be updated, and we no longer have powers in primary legislation to make the amendments needed.
That is why we committed to introduce a cyber-security and resilience Bill in the King’s Speech in July last year. As set out in the policy statement published today, the Bill will strengthen the UK’s cyber-defences and make sure that the critical infrastructure and digital services UK citizens and business rely on are more secure. This will enhance the UK’s level of cyber-security and resilience at a time when similar steps are being taken by our international counterparts, such as the EU, which has updated the NIS framework through its own updated directive.
The policy statement provides more detail to the Bill’s measures announced in the King’s Speech:
Expanding the scope of regulations to protect more digital services and supply chains. The Bill will bring managed IT service providers that provide digital services into the scope of the regulatory framework. The Bill will allow individual regulators to designate a small number of important suppliers to regulated entities as “critical suppliers”, including those that would otherwise be exempted from regulation as SMEs. This, in addition to embedding supply chain security requirements directly into our regulatory framework, will address supply chain vulnerabilities and reduce the threat of significant disruptions to critical services. This will build a better picture of the threats facing our critical national infrastructure and protect a broader range of services from cyber-attacks.
Empowering regulators and enhancing oversight. Regulators will be better equipped with the tools they need to perform their duties effectively, including enhanced oversight of cyber-incidents affecting regulated entities and improved cost recovery powers. The Information Commissioner’s information gathering powers will be strengthened, to improve its understanding of the landscape of cyber-security threats affecting the expanded portfolio of digital service providers that it will oversee.
Ensuring the regulatory framework can keep pace with the ever-changing cyber-landscape. The Bill will allow the Government to update the regulatory framework in the future via secondary legislation, if necessary. For example, the Government would be able to bring new sectors into scope of the regulations, if necessary to do so. The Bill will enable the Government to update the security requirements for regulated services in line with best practice, improving clarity for service providers in terms of what is expected of them.
In addition to the policy proposals outlined in the King’s Speech for inclusion in the Bill, we have identified a number of additional cyber-security and resilience proposals, as set out in the policy statement. The appropriate legislative vehicle for these has yet to be determined.
The Government propose bringing data infrastructure into the scope of the regulatory framework, recognising their new status as critical national infrastructure and essential role in ensuring the stability and growth of our digital economy. Additionally, to ensure our regulatory framework is implemented with a consistent understanding of the Government’s cyber-security and resilience objectives, we propose enabling the Secretary of State to publish a statement of strategic priorities. This will establish a unified set of objectives and expectations for regulators. Finally, we intend to provide new powers to the Secretary of State to direct a regulator, or regulated entities, to take action when it is necessary for national security. This will be invaluable in responding to the constant evolution of both the cyber-landscape and the changes in tactics used by cyber threat actors.
The Government have listened to the views expressed to the previous Government in the 2022 consultation on cyber-security to develop the Bill’s measures. The measures set out in the policy statement build on what we have learned from our engagement with key international partners, including learnings from the European Union on the implementation of the NIS2 directive (Directive (EU) 2022-2555) and 2023 data infrastructure consultation. We will continue to engage with and learn from the actions taken by other nations to improve cyber-security.
These cyber-security and resilience measures represent a significant step forward in our efforts to protect the UK from the growing threats of cyber-attacks. Cyber-security is a critical enabler of economic growth, and by protecting our digital assets and ensuring the resilience of our critical services we are creating a stable environment that fosters innovation and attracts investment.
My officials and I will engage with parliamentarians, regulators and industry groups to thoroughly test the proposals before the Bill is introduced to Parliament this year.
[HCWS572]