Defence Industrial Base

Lord Lancaster of Kimbolton Excerpts

Monday 16th June 2025 Lords Chamber

Asked by

[Lord Lancaster of Kimbolton]

To ask His Majesty’s Government what steps they are taking to support the defence industrial base.

[Lord Lancaster of Kimbolton (Con)]

My Lords, in begging leave to ask the Question standing in my name on the Order Paper, I declare my interest as a member of the Army Board.

[The Minister of State, Ministry of Defence (Lord Coaker) (Lab)]

My Lords, our new defence industrial strategy will make sure that national security and a high-growth economy are aligned to deliver the changes we promised: cracking down on waste, building resilient supply chains and boosting Britain’s defence industry. By strengthening our relationship with industry, innovators and investors, we will make it easier and more attractive than ever before to do business in defence.

[Lord Lancaster of Kimbolton (Con)]

My Lords, the Prime Minister’s EU reset supposedly opens the door for the United Kingdom to participate in the European Union’s €150 billion defence procurement fund. However, there were reports over the weekend that France is now insisting that any beneficiary of that fund—any project—will have to have 85% EU content. That would be a disaster for UK industry. Can the Minister reassure your Lordships’ House that the Government will seek cast-iron guarantees that before they put any money into the fund, it will be a level playing field without artificial restrictions so that UK industry can compete fairly against its EU counterparts?

[Lord Coaker (Lab)]

The noble Lord makes a point the Government themselves would make: access to the €150 billion Security Action for Europe fund is really important. Of course, we will act in the best interests of the UK and ensure that British industry is protected as far as we possibly can. The only reason we can access that money, under whatever terms we are able to negotiate and discuss with our European friends, is because we have a security and defence partnership. Without that partnership, which the British Government and the Prime Minister negotiated successfully with the EU, we would not be able to bid for the money or be involved at all. So I take the noble Lord’s point, but we should also think that the Government have done well to negotiate the security and defence partnership.