David Reed

HMG will lead the Laboratory for AI Security Research. Its research activities will be conducted across the UK and will include a range of UK universities, including the University of Oxford and Queen's University, Belfast.

The Laboratory for AI Security Research (LASR) was designed to build on the knowledge and experience of addressing cyber security and other national security activities across government, academia and industry. LASR is designed to complement or enhance existing mechanisms and organisations, as well as offer new ways of working where appropriate.

The Laboratory for AI Security Research (LASR) is at an early stage. We will be working closely with industry and academia to define research priorities. Examples could include the role of AI security on our critical national infrastructure and how we can raise the quality of our cybersecurity to account for AI. Most of LASR's work will be classified and will benefit the UK's AI Security eco-system. The programme is also designed to facilitate industry investment and support the Government's growth agenda.

As the Laboratory for AI Security Research is a cross-Government initiative, it will involve all relevant departments including the Ministry of Defence and the Defence Science and Technology Laboratory.

AI security has clear implications for our national security. The programme to deliver the Laboratory for AI Security Research has only just started its work and will bring together government, academia and industry to share information and work together to enhance AI security and inform many aspects of government's work.

The Laboratory for AI Security Research (LASR) concept was developed jointly across HMG and is funded initially by the cross-Government Integrated Security Fund (ISF). LASR is an FCDO-led ISF programme co-designed and governed to inform the strategies and operations of all relevant departments.

The Government has protected the smallest businesses from the impact of the increase to employers’ National Insurance by increasing the Employment Allowance from £5,000 to £10,500, which means that 865,000 employers will pay no employer NICs at all next year. More than half of employers will see no change or will gain overall from this package and eligible employers will be able to employ up to four full-time workers on the National Living Wage and pay no employer NICs.

A Tax Information and Impact Note regarding these changes was published by HMRC on 13 November.

The previous administration had no plans for either HMS Albion or HMS Bulwark to return to sea ahead of their leaving service in the 2030s, therefore there has been no reduction in capability.

RFA Argus, alongside Bay Class, is a highly capable ship and will continue to support Royal Marine operations until the introduction of Multi-Role Support Ships in the early 2030s.

Micro, small and medium sized businesses make a vital contribution to economic growth and are a valuable source of technical innovation in defence. This is recognised in the recently published Defence Industrial Strategy Statement of Intent. We work with our largest suppliers through a network of their SME Champions, trade associations and SME representatives to ensure that SMEs have fair access to opportunities in our supply chain and that our prime contractors are adopting policies, such as fair payment practices, that support small businesses working in defence. We are also engaging with our industrial partners of all sizes to develop a new SME Action Plan which will simplify and make more accessible opportunities to Defence contracts for smaller suppliers.

Micro, small and medium sized businesses make a vital contribution to economic growth and are a valuable source of technical innovation in defence. This is recognised in the recently published Defence Industrial Strategy Statement of Intent. We work with our largest suppliers through a network of their SME Champions, trade associations and SME representatives to ensure that SMEs have fair access to opportunities in our supply chain and that our prime contractors are adopting policies, such as fair payment practices, that support small businesses working in defence. We are also engaging with our industrial partners of all sizes to develop a new SME Action Plan which will simplify and make more accessible opportunities to Defence contracts for smaller suppliers.

Through the Defence Reform programme, we will improve procurement efficiency and secure better value for taxpayers, creating a simpler Defence focused on warfighting and deterrence.

A key facet of this programme is to create a stronger Defence centre with clearer accountabilities through the Permanent Secretary, Chief of Defence Staff, National Armaments Director and Chief of Defence Nuclear. This, coupled with our work on our future governance structures, will ensure Defence is optimised to enable faster, streamlined decision making, approvals, and delivery of our outcomes so that we remain ahead of current and future threats.

The Multi-Role Support Ship (MRSS) programme is in its Concept Phase. The Royal Navy and Defence Equipment and Support are conducting detailed work on key user requirements, conceptual designs, affordability, and exportability assessments. Alongside other shipbuilding programmes, they are maintaining engagement with all leading UK shipbuilding entities and the National Shipbuilding Office (NSO) on the best commercial approach for UK to deliver for the Navy and the Nation. The Outline Business Case is due for submission mid-2025 which will detail the schedule for future contract award milestones.

The Type 32 frigate programme is in the concept phrase and has not yet reached the level of maturity to allow publication of a specific timetable for design and procurement. This is consistent with a programme of this size and complexity at this early stage in its development.

All future designs of the Royal Navy will be part of the Strategic Defence Review (SDR) so would be inappropriate to provide further detail until SDR decisions have been made.

This Government inherited a retention and recruitment crisis with every part of our Armed Forces not meeting their recruitment targets. Cyber is a key area for the military and we are seeking to expand the number of people working in cyber. The Defence Secretary announced a new direct entry route into cyber last year and this will be rolled out this year.

Many AI technologies, including machine learning, have dual uses and are developed across a broad technology ecosystem. Defence needs to leverage expertise from this ecosystem to solve critical military problems and maintain its edge. The Defence AI Centre (DAIC) and CommercialX are leading efforts to engage with technology suppliers through simplified processes and better cross-Ministry of Defence (MOD) coordination.

Most Defence AI and ML projects will use both in-house and external expertise. Differentiating between public and private sector involvement at a pan-Defence macro level is challenging and not currently tracked. AI deployments within the Department must follow MOD's Responsible AI policy, as outlined in Joint Services Publication 936 (Dependable AI).

The Procurement Act 2023 introduces reforms intended to make it easier for small businesses to access public sector procurements, including a requirement for contracting authorities to consider barriers to participation and whether they can be removed or reduced.

UK industry partners of all sizes, including SMEs, are at the heart of our One Defence approach and we recognise the vital contribution they make in driving economic growth and strengthening our national security.

The Defence Industrial Strategy will set the conditions to unlock the full potential of SMEs to innovate at pace and seize future opportunities.

Officials from the Ministry of Defence regularly meet with officials from the Cabinet Office and the Department for Science, Innovation and Technology through a number of Cross Whitehall meetings and boards. These forums allow Defence to feed in and engage on broader digital and national security related matters including the development and procurement of digital capabilities.

This Government is committed to improving the UK Defence industrial base to ensure a robust Defence sector and provide greater certainty in procurement processes. The Statement of Intent for the Defence Industrial Strategy, published on 2 December 2024, set out a commitment to prioritise UK businesses for investment, provide certainty and stability and boost sovereign capacity. As part of the Defence Industrial Strategy, we will reform Mininstry of Defence procurement and acquisition processes to ensure we deliver the capabilities defence requires now and in the future, whilst reducing waste, supporting growth and ensuring compliance with our obligations under our international trade agreements.

The Ministry of Defence is committed to supporting micro, small and medium-sized technology companies. Through the Defence Industrial Strategy the department will foster a more diverse community of suppliers, including non-traditional suppliers, through reducing barriers to entry and setting the conditions that unlock the full potential of small and medium sized enterprises (SMEs).

One of the ways we are already doing this is through the Defence and Security Accelerator (DASA) with its remit to find and fund suppliers to deliver innovative projects to meet UK defence and security challenges. DASA also supports funded SMEs with additional business services to help scale up and commercialise their innovative ideas.

The Ministry of Defence (MOD) is taking steps itself to secure important skills in areas such as digital, cyber, STEM subjects (Science, Technology, Engineering and Maths), nuclear and space. As we tackle these challenges we will continue to work closely with industry partners of all sizes. Our strategic suppliers have identified SME Champions and there is now regular engagement between them and the department, focusing upon how industry and MOD should improve their practice to better support SMEs.

We also work with other Government Departments and academia to ensure that we are growing and retaining these skills nationally.

Through the Defence STEM Steering Group, Defence and their national strategic partners are actively promoting engineering as an inclusive career field, supporting teacher training, and coordinating outreach activities to maximise efficiency.

The Ministry of Defence (MOD) is taking steps itself to secure important skills in areas such as digital, cyber, STEM subjects (Science, Technology, Engineering and Maths), nuclear and space. As we tackle these challenges we will continue to work closely with industry partners of all sizes. Our strategic suppliers have identified SME Champions and there is now regular engagement between them and the department, focusing upon how industry and MOD should improve their practice to better support SMEs.

We also work with other Government Departments and academia to ensure that we are growing and retaining these skills nationally.

Through the Defence STEM Steering Group, Defence and their national strategic partners are actively promoting engineering as an inclusive career field, supporting teacher training, and coordinating outreach activities to maximise efficiency.

The Ministry of Defence (MOD) is taking steps itself to secure important skills in areas such as digital, cyber, STEM subjects (Science, Technology, Engineering and Maths), nuclear and space. As we tackle these challenges we will continue to work closely with industry partners of all sizes. Our strategic suppliers have identified SME Champions and there is now regular engagement between them and the department, focusing upon how industry and MOD should improve their practice to better support SMEs.

We also work with other Government Departments and academia to ensure that we are growing and retaining these skills nationally.

Through the Defence STEM Steering Group, Defence and their national strategic partners are actively promoting engineering as an inclusive career field, supporting teacher training, and coordinating outreach activities to maximise efficiency.

The Multi-Role Support Ship programme is progressing well through the Concept Phase. The Royal Navy (RN) and Defence Equipment and Support are conducting detailed work on key user requirements, conceptual designs, affordability, and exportability assessments, while working closely with leading UK shipbuilding entities and the National Shipbuilding Office (NSO) on the best commercial approach for UK to deliver for the RN and the Nation.

The Outline Business Case is due for submission in mid-2025 this will detail the schedule for shifting to the Assessment Phase in 2026.

Defence invests in high-risk, high-reward technology experimentation from across the Defence enterprise. Defence’s core Science, Innovation and Technology budgets (e.g. Defence Science & Technology Programme and Defence Innovation Fund) are led from Head Office and are the main contributors to this. There are further investments from the Capability Portfolios of each Top Level Budget (e.g. Strategic Programmes, Single Service Commands) and utilise constructs such as the RAF’s Rapid Capabilities Office.

Recent examples of such work include the Dragonfire Laser Directed Energy Weapon Demonstrator and the BriteCloud Expendable Active Decoy.

Defence’s Research and Innovation programmes are run according to best practice Portfolio, Programme and Project management Processes which aim to deliver defined outcomes and benefits that are then tracked and monitored.

The Ministry of Defence is currently undertaking the Defence Reform programme, which will determine the delivery and exploitation mechanisms for any ‘high-risk, high-reward’ technologies. This builds on both the current S&T portfolio processes and the ‘Spearhead’ and ‘Gamechanger’ initiatives which are currently experimenting ways to improve delivery.”

The £2.9 billion increase in funding for the Ministry of Defence for financial year 2025-26 has not yet been allocated to any specific programmes or activities. His Majesty's Treasury has confirmed they will provide funding for the increased cost of National Insurance contributions for the Department.

On 17 July 2024, the Prime Minister commissioned the Defence Secretary to oversee the Strategic Defence Review, which is headed by three external Reviewers, Lord Robertson of Port Ellen, General Sir Richard Barrons and Dr Fiona Hill CMG. The Review is being conducted with the best value for money for Defence in mind, within current budgets. Costs will be provided after the review has concluded.

While the design, headcount and organisational structure of the future Military Strategic Head Quarters (MSHQ) is still in the development stage, it is expected that the establishment of the MSHQ will be cost neutral and contained within the overall Defence budget.

The Ministry of Defence regularly liaises with the Home Office on a range of issues, but there are no plans for Defence to undertake actions in relation to migration in the UK currently outside the Afghan relocations work.

The decision to formally decommission HM Ships ALBION and BULWARK reflects the decision of the last Government. This has been in full consultation with the Service Chiefs and the SDR reviewers and neither ship could realistically be put to sea again ahead of their planned decommissioning in 2032 and 2033 respectively.