Oral Answers to Questions

Baggy Shanker Excerpts

Monday 19th May 2025 Commons Chamber

[Catherine Atkinson (Derby North) (Lab)]

8. What steps he is taking to ensure that small and medium-sized enterprises are able to participate in defence procurement contracts.

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

19. What steps he is taking to ensure that small and medium-sized enterprises are able to participate in defence procurement contracts.

[The Secretary of State for Defence (John Healey)]

The House will note that this afternoon we are without the Minister for Veterans and People, my hon. Friend the Member for Birmingham Selly Oak (Al Carns). He is halfway up Everest with a group of soldiers, raising funds for armed forces charities and raising the profile of veterans, and I am sure that the whole House wishes him well. Most of us also think, “Rather him than me.”

This Government have confirmed the biggest increase in defence spending since the end of the cold war, which will boost national security and make defence the engine for growth in every part of the United Kingdom. For too long, small businesses have felt left out of defence, but no more. We are setting new targets to ensure that smaller firms benefit from that increase in defence spending. We are setting up a new support centre to guide small businesses on access to defence and, for the first time, we are making British-based businesses a priority for British taxpayers’ defence investment.

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[Baggy Shanker]

Earlier this year, I had the pleasure of hosting a roundtable and listening to businesses in Derby—small and medium-sized businesses in engineering and manufacturing, including the vital defence sector. With nearly 70% of Government defence spending directed towards businesses outside of London and the south-east, we know how every pound spent with UK defence businesses has the power to create jobs and employment for local people. Will the Secretary of State therefore outline how the Department will ensure that as many SMEs as possible are aware of Government procurement opportunities, so that they can deliver jobs in areas such as Derby?

[John Healey]

My hon. Friend makes an important point. The access of SMEs to defence is very often through primes and subcontracting, rather than directly with the Ministry of Defence itself. It is the certainty of long-term relationships and long-term contracts for the primes that allow them to pass those benefits on to smaller firms. That is why it is significant that when my hon. Friend joined me at the Derby Rolls-Royce factory when I announced the eight-year £9 billion Unity contract for Rolls-Royce, 240 small firms were part of that submarine supply chain.