Oral Answers to Questions

Grant Shapps Excerpts

Monday 20th November 2023 Commons Chamber

[Kim Johnson (Liverpool, Riverside) (Lab)]

1. What assessment his Department has made of the potential impact of UK arms sales to Israel on (a) civilian deaths and (b) compliance with international humanitarian law in Gaza.

[The Secretary of State for Defence (Grant Shapps)]

All export licence applications are assessed on a case-by-case basis against the strategic export licence criteria. This Government will not use any export licences to any destination where applications are not consistent with the criteria.

[Kim Johnson]

I thank the Secretary of State for that answer, but since the horrendous Hamas attacks on 7 October, 12,000 innocent Palestinian civilians have been killed; and two thirds were women and children. The UN Secretary-General has described Gaza as a “graveyard of children”. Today an Israeli airstrike on a United Nations Relief and Works Agency school has killed 12 people. The Indonesian hospital in Gaza is currently surrounded by Israeli Defence Forces tanks. Can the Minister confirm whether arms sold by the UK have been used in violations of international humanitarian law, and will he explain why arms sales to Israel have not yet been suspended?

[Grant Shapps]

The hon. Lady is right to describe as terrorism the horrendous and heinous attacks by Hamas, without which this would not have started. We call on all parties—the Israelis included—to ensure that they act within international humanitarian law. It will interest her to know that our defence exports to Israel are relatively small—just £42 million last year—and, as I mentioned in my initial answer, they go through a very strict criteria before anything is exported.

[Neil O’Brien (Harborough) (Con)]

2. What steps he is taking to encourage de-escalation of the conflict in Israel and Gaza.

[The Secretary of State for Defence (Grant Shapps)]

We are working with partners across the wider region, urging all sides to de-escalate tension, facilitate the supply of humanitarian aid, and tackle all forms of extremism.

[Neil O’Brien]

We are all absolutely heartbroken—[Interruption.]

[Neil O’Brien]

We are all heartbroken by what is happening in the middle east. As Israel works to root out Hamas terrorists, will my right hon. Friend work to ensure that aid gets to civilians and that Israel works in a way that is compatible with international law? As the Government work to get hostages freed, will they also work for increasingly long humanitarian pauses that can build towards a just and lasting peace?

[Grant Shapps]

My hon. Friend is right about trying to do everything we can in the region. That is why I sent a Royal Navy task group to try to de-escalate tensions, including RFA Lyme Bay and RFA Argus. Those facilities, along with others, are doing everything they can to help lower the tensions and certainly act as deterrents, and to ensure that we can get aid into the region. He will be interested to hear that we have had 51 tonnes of aid delivered so far, and there will be another flight later this month.

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

There are thousands of orphans and displaced families amid an ongoing humanitarian catastrophe. What are the Government doing to ensure that unrestricted aid is reaching all the people who desperately need it, and, importantly, to ensure that Israel lifts the siege conditions?

[Grant Shapps]

As the hon. Lady will know, we are in favour of seeing pauses in the action. Some people, I know, call for a ceasefire, but I would point out that there was a ceasefire on 6 October; the problem is that it was broken by Hamas, who wrought this carnage on the middle east. We are doing everything possible to help get that aid in. With the Royal Navy taskforce, infantry, and other personnel in the region, we now have an uplift of about 600 personnel in the wider region, who are all helping to ensure that we get the aid in and across the border once we have got it to the region itself.

[Mr Tobias Ellwood (Bournemouth East) (Con)]

I welcome the Defence Secretary to his place. Behind Hamas, sits Iran; behind Iran, sits Russia; and, increasingly, behind Russia sits China. That is the geopolitical backdrop that will define the next decade, with growing authoritarianism impacting on our security and our economy. Is it now time to increase the defence budget to 3%?

[Grant Shapps]

My right hon. Friend will know that we have indeed pledged to increase defence spending to 2.5%, as economic conditions allow. This year, it will probably be around 2.4%, so we are making good progress. Prior to getting this role, I talked about my own desire to see higher defence spending, because we are living in a much less certain world, with many more variables. He is right to point out Iran’s action, with Hezbollah in Lebanon, Syrian militias in Iraq, and Houthis in Yemen very much driving the situation.

[Andrew Gwynne (Denton and Reddish) (Lab)]

The reality is that neither the long-term security of Israel nor justice for the Palestinians will be found through bombs and bullets. As an international community, we need to be doing all we can to move to an enduring cessation of the violence, but while we are doing that, can the Secretary of State say how the UK armed forces will be utilising their capacity to help those getting aid into Gaza to get much bigger quantities in than is happening at the moment?

[Grant Shapps]

The hon. Gentleman is absolutely right about the UK’s desire to do that, and I have talked about how we have deployed a large increase in personnel in the region to work with various Governments. I have personally spoken to most of the middle eastern Governments, and on those calls the first thing they have done is welcome our deterrent and the fact that we have brought such a large amount of aid—now £30 million—to help the Palestinians. It is not just the hostages themselves who are being held hostage; the population of Gaza are being held hostage by Hamas, and therefore the solution is to deal with Hamas themselves.

[Mr Speaker]

I call the shadow Secretary of State.

[John Healey (Wentworth and Dearne) (Lab)]

After nearly three months, it is very good to finally welcome the Defence Secretary to the Dispatch Box for the first time. He reflects the deep concern about the humanitarian catastrophe in Gaza and the risks of wider escalation. Labour totally condemns Hamas terrorism. We back Israel’s right to defend itself, but require it to meet its duties under international law and lift the siege conditions, and we want to see the breaks in fighting extended to get much more aid in and the hostages out. We back the military deployments to the region to support wider security, but with attacks against US personnel rising, what action is the Defence Secretary taking to increase protection for UK personnel in the middle east?

[Grant Shapps]

First, Mr Speaker, it is good to be at the Dispatch Box opposite the right hon. Gentleman. I thank him, as well as yourself and others, for their condolences when I was not able to attend the first Defence questions.

In terms of protecting our own personnel, I have asked the Chief of the Defence Staff to review their position. I made reference to the additional personnel who have moved to the region, but did not mention that several have been moved to Tel Aviv, Beirut and Jordan, all with the aim of protecting both British military personnel and British citizens in the region. We keep that matter under constant review.

[John Healey]

Would the Defence Secretary agree that over the past decade, there has been an international failure to pursue a Palestinian peace settlement and tackle the Hamas threat? Middle east escalation risks were not mentioned in the Government’s defence Command Paper update, nor were Hamas or Palestine. With threats increasing, is the Defence Secretary pursuing that defence plan in full, including further deep cuts to the British Army?

[Grant Shapps]

The right hon. Gentleman is right to say that nobody, including the Israelis, saw what Hamas were about to do coming. That points to the need for much greater surveillance, but also—much wider than that—the need to pursue the two-state solution, which is official British policy and is something that the world must do as this conflict, we hope, comes to an end.

The answer to the right hon. Gentleman’s question about being able to deploy British troops and, indeed, assets is that when I asked the question, the answer came back immediately: “Yes, we can do it, and there is more that we could do should we need to.” I am satisfied that we cut our cloth in order to react to events around the world, which of course came on top of what we are doing in Kosovo and elsewhere. We will certainly make sure that we maintain the resources to carry out those important missions.

[Chris Elmore (Ogmore) (Lab)]

3. What recent assessment he has made of the adequacy of service accommodation for armed forces personnel.

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[Janet Daby (Lewisham East) (Lab)]

13. What steps he is taking to increase the number of RAF aid flights to the middle east.

[The Secretary of State for Defence (Grant Shapps)]

Defence assets continue to be ready to supply humanitarian support to the region. As the hon. Gentleman knows, the delivery of aid is impeded by the many challenges around Gaza, but so far we have airlifted 51 tonnes of aid to the country.

[Mr Dhesi]

As I have said previously, I want to see an end to the violence in the middle east, although I acknowledge that neither Israel nor Hamas agreed to an immediate ceasefire. While negotiations to deliver an enduring peace are ongoing, we must urgently accelerate the delivery of aid via the RAF to alleviate human suffering on the ground. Can the Secretary of State explain why, within two weeks of the earthquake in Turkey and Syria, nearly 100 tonnes of aid was delivered there, yet since the Israel-Hamas war broke out more than a month ago, only 50 tonnes has been delivered by the RAF?

[Grant Shapps]

I can. The difference is a war zone. When I said that we had delivered “to the country”, I meant, of course, to Egypt. From there we have to get the aid across the Rafah crossing, which, for all the reasons of complexity, is not always open or available. There are many restrictions to getting that aid in, but I am working very hard on that. The problem is not a lack of resource; we have put in £30 million, more than doubling the existing £27 million, and I can assure the hon. Gentleman that there are further flights leaving later this month.

[Janet Daby]

For more than a month we have witnessed a distressing humanitarian disaster unfolding in Gaza. It is welcome that the RAF is flying UK humanitarian aid to the region, but so far we have seen only three RAF flights. When will the Government increase the number of flights and the amount of aid given to Palestinians, who have suffered so much and who deserve, at the very least, the basic essentials to try to survive?

[Grant Shapps]

The issue is not getting the aid to the region; we could fly more aircraft. The issue is getting the aid into Gaza itself, and in that regard we have the problem of Hamas, a terrorist organisation not in the least bit interested in looking after the citizens of Gaza, and, of course, the problem of the Rafah crossing, which is opened and closed on a fairly arbitrary basis. However, I can assure the hon. Lady that we are working very hard with all the different bodies and Governments in the region to get more of that aid in as quickly as possible. The capacity constraint is not flying it to the region.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

10. What steps he is taking to support Afghan citizens who are eligible for the Afghan relocations and assistance policy.

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[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

11. What steps his Department is taking to provide military support to the Ukrainian armed forces.

[The Secretary of State for Defence (Grant Shapps)]

We continue to support Ukraine—we provided £2.3 billion of military support in the last year—and will go on doing so, because Putin must not win in Ukraine.

[Sir Bernard Jenkin]

I thank my right hon. Friend for that answer and for the consistency of support the British Government have shown and the way they have led our NATO allies in support of the Ukrainians right from the start. How are we going to maintain that lead in the face of another war in the middle east, a certain amount of disarray in the Congress and indeed some visible wavering among our European allies?

[Grant Shapps]

My right hon. Friend is right that the UK has led, and we must continue to do so. I have visited Ukraine twice this year, I hosted a Ukrainian family for a year in my own home, and the Government have set up the British-led international fund for Ukraine, which is on its way to delivering, I think, nearly £800 million of support. We have also been first with tanks, with ammunition, with long-range missiles and with permissions, and we intend to be first with this war going forward.

[Derek Twigg (Halton) (Lab)]

It is vital that we continue to give military aid to Ukraine and to show our steadfast support and leadership in Europe. Has the Secretary of State had a chance, since he came into office, to meet with representatives of the defence industry to talk about how we maintain that level of military aid to Ukraine and, if he has had such a meeting, what was the outcome?

[Grant Shapps]

Yes, on several occasions, including in Kyiv and, more recently, last Thursday at the MOD, where I met with large, medium and small defence companies to discuss exactly that issue. There are a whole range of measures in place to increase the amount of arms, particularly arms replenishment, that can come through via UK companies. Having supported Ukraine from the beginning, we must support them all the way through to the end, and we intend to do so.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

12. What steps his Department is taking to ensure that the armed forces have the skills required for the future.

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[Jonathan Gullis (Stoke-on-Trent North) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Defence (Grant Shapps)]

My first months as Defence Secretary have strengthened my long-held belief that we need to strengthen our national defence as the world grows ever-more dangerous. With the challenges in Ukraine, the middle east and the Indo-Pacific, these are more contested times than any since the cold war. The servicemen and women of our armed forces are our greatest asset. As has been mentioned, as we ask them to do extraordinarily difficult things around the world and they do deserve comfort back home. That is why I have put service accommodation at the forefront of my mission.

[Jonathan Gullis]

I thank the Secretary of State for his answer. Will he add his thanks to volunteers such as Trevor Simcock, Mal Mullet and Chris Smith, who work with the Commonwealth War Graves Commission locally in Stoke-on-Trent North, Kidsgrove and Talke? Ahead of the Armistice Weekend, I was proud to join them at Burslem cemetery with my daughter Amelia to clean the headstones of 130 of our brave and fallen heroes. Will he add his thanks and come to visit those great volunteers?

[Grant Shapps]

I am delighted to add my thanks to my hon. Friend’s brilliant volunteers. It is an opportunity to mention from the Dispatch Box the many thousands of people who turned out across the country on Remembrance Weekend to commemorate and remember those who bravely gave of themselves so that we can be here in freedom today.

[Mr Speaker]

I call the shadow Secretary of State.

[John Healey (Wentworth and Dearne) (Lab)]

The Defence Secretary said recently that, despite middle east tensions, we must not forget about Ukraine. I welcome that statement, but the UK’s leadership on support for Ukraine is flagging, so will Wednesday’s autumn statement, as a minimum, confirm the commitment to match this year’s £2.3 billion in military aid funding for next year?

[Grant Shapps]

I do not know when the right hon. Gentleman was last able to visit Kyiv himself, but when he does go, he will discover that the attitude there is that no country in the world has been more forward-leaning and progressive in its support, and that remains the same today as it was before this conflict began. We have trained 52,000 Ukrainian troops since 2014. Our support is not for today or tomorrow or the short term; it is forever.

[Henry Smith (Crawley) (Con)]

T4.   What assessment has the Defence Secretary made of the strategic importance to UK national security, and indeed that of the United States, of retaining British sovereignty over Diego Garcia?

[Grant Shapps]

It is essential that we maintain our position, to be able to assist ourselves and the United States, in Diego Garcia.

[Alistair Strathern (Mid Bedfordshire) (Lab)]

T2. I am proud that my constituency is home to hundreds of armed forces personnel and their families and former families, but as Members on both sides of the House have mentioned, last winter far too many of them found themselves living in accommodation that simply was not fit for purpose. Can the Minister confirm how we will be getting tough with the contractors who are letting down our families this winter, and can we have some clarity on when all armed forces families will finally be able to live in homes that are fit for their heroes?

[Andrew Jones (Harrogate and Knaresborough) (Con)]

T5. Does my right hon. Friend agree that we are more secure as a country when the world is a safer and more peaceful place, and that a successful two-state solution for the Israel and Palestine question is therefore a part of our own national security too?

[Grant Shapps]

My hon. Friend is absolutely right about that. The way that we can start along that path is that Hamas could release the 242 innocent civilians that they are holding hostage, which includes some Brits. That would open the door to starting to be able to get a resolution. That is what they should do, but sadly, I doubt that they are about to.

[Andrew Gwynne (Denton and Reddish) (Lab)]

T3.   Labour Party research on waste in the Ministry of Defence shows that over £15 billion has been squandered since 2010, so when are the Government going to get a grip on defence procurement and secure value for money for the British taxpayer?

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[Kirsten Oswald (East Renfrewshire) (SNP)]

T6. In 2022, 11.2% of British Army recruits were women. That is down from 12.6% in 2020. In 2021, 9% of British Army recruits were from ethnic minority backgrounds, and that is down from 11.7% in 2020. What is the Secretary of State doing to urgently remedy this reduction in the diversity of recruits?

[Grant Shapps]

I want to make it absolutely clear that I think everyone working within the civil service as part of the Ministry of Defence and, indeed, working in the UK armed forces should feel able to be represented and be a part of it. I want to challenge the hon. Lady’s figures: the numbers I have for female representation between last year and this year are 10.4%, rising to 11.5%—it has actually gone up, not down—and civilian representation at SCS level stands at 45%. None the less, I accept the overall point that we need to see a far more balanced armed forces in the future.

[Sarah Atherton (Wrexham) (Con)]

Two years ago, the Defence Select Committee undertook an inquiry into the experiences of women in the armed forces. While progress has been made, the culture within defence remains unacceptable. We now understand that 60 female senior civil servants at the MOD have made allegations of sexual assault, harassment and abuse. Would my right hon. Friend like to comment?

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[Mark Logan (Bolton North East) (Con)]

Local mosques in Bolton are collecting donations, yet there seem to be major problems in getting those donations and aid into Gaza. What discussions is the Department having with the Foreign, Commonwealth and Development Office and the Israeli Government about ensuring that those donations get to those most in need? Not doing so will only escalate the conflict.

[Grant Shapps]

As I have described, it is a complex position on the ground to get the aid all the way through, but I am happy to either meet or take details from my hon. Friend to ensure that those donations get where they are intended.

[Tony Lloyd (Rochdale) (Lab)]

Defence Ministers will be aware that the situation in Kosovo is deteriorating dramatically. Can the Secretary of State give us an assurance that the current international military presence there is sufficient to counter any threat from Belgrade?

[Grant Shapps]

When the Supreme Allied Commander Europe asked us for additional support for the Kosovo-Serbian border, the answer was immediately yes, that weekend, and we have a battalion there now, which is doing a great job. That has contributed to a lessening of tensions, and we are keeping a close eye on it in our conversations, to ensure that we do not see the situation erupt.

[Dr Matthew Offord (Hendon) (Con)]

This weekend we witnessed the third attack in a year on a commercial vessel in international waters. The cargo ship Galaxy Leader has been described by the Israeli Government as British owned and Japanese operated. What actions will the Minister take to prevent such acts of terrorism on British vessels?

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[Sir Chris Bryant (Rhondda) (Lab)]

We must ensure that Putin does not win. We must co-operate and help with the reconstruction of Ukraine. Is it not time that we started seizing Russian state assets to help pay for the reconstruction of Ukraine?

[Grant Shapps]

A long time ago, when the war started, I was Transport Secretary. We seized quite a lot of yachts and aircraft, which have still not been released, to ensure that they did not benefit from their closeness to Putin. The hon. Gentleman is right that over time we must keep cranking up the different ways by which we ensure that money is not flowing to that regime, and we will continue to keep that under review.

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[Dave Doogan (Angus) (SNP)]

The Secretary of State and his predecessors rightly called out the wanton and unlawful destruction of civilian infrastructure in Ukraine—homes, hospitals and schools. Why can they not show equal uproar at what is happening to civilians in Gaza?

[Grant Shapps]

There is a principle in international law that a country can defend itself. Ukraine was attacked for absolutely no reason whatsoever. While we call on Israel, both privately and publicly, to protect civilians in whatever way it can, Hamas are using civilians as human shields, and deliberately using the infrastructure on top of them to hide behind. I would have thought that the hon. Gentleman could see the difference.

[Sir Julian Lewis (New Forest East) (Con)]

Does the Secretary of State agree that it is vital that his counterparts in the US Administration realise that if Putin does not lose in Ukraine, the peace and security of the whole of Europe is called into question, so it is in their short and medium-term interests to make sure that Putin is seen to fail?

[Grant Shapps]

My right hon. Friend is characteristically correct about this, but I would widen that point: we are talking about the security of not just Europe, but the Indo-Pacific, and indeed the entire world. Putin must not win.

Independent Inquiry relating to Afghanistan: Revised Terms of Reference

Grant Shapps Excerpts

Tuesday 19th September 2023 Written Statements

[The Secretary of State for Defence (Grant Shapps)]

Further to the statement by my right hon. Friend the Member for Wyre and Preston North (Mr Wallace) dated 5 July 2023, I can confirm that the terms of reference of the independent inquiry relating to Afghanistan have been amended by agreement with the chair, the right hon. Lord Justice Haddon-Cave.

I have placed a copy of the revised terms of reference in the Library of the House.

The amendments reflect the written ministerial statement, which avowed the involvement of special forces in alleged unlawful activity in Afghanistan in the period mid-2010 to mid-2013.

In my new capacity as Secretary of State for Defence, I would like to reiterate my strong support for this inquiry commissioned my right hon. Friend the Member for Wyre and Preston North.

Attachments can be viewed online at:

http://questions-statements.parliament.uk/written-statements/detail/2023-09-19/HCWS1043

[HCWS1043]

Combat Air Strategy

Grant Shapps Excerpts

Tuesday 12th September 2023 Written Statements

[The Secretary of State for Defence (Grant Shapps)]

The last update to the House on delivery of the combat air strategy was given during Farnborough international air show in July last year. DSEI London has brought the eyes of the world once again to the UK’s world-leading defence capabilities, making this a fitting time to provide a further update on the progress made over the last year.

The Government published the integrated review refresh in March, which lays out a strategic approach based on four pillars: shaping the international environment; deterring, defending and competing across all domains; bolstering our national resilience; and securing strategic advantage. The Defence Command Paper 2023 sets out how Defence will help the UK meet these aims through the interlinked objectives of protecting the nation and helping it prosper. With the world becoming increasingly contested and volatile it is clear, now more than at any time in a generation, that strong and capable combat air is crucial in enabling the UK to meet its core strategic objectives.

It is in this context that RAF fast jets have been conducting an intense schedule of operations and exercises, from eastern Europe to the middle east, and from the high north to Australia. It was with a keen eye to the UK’s future security and prosperity that in December 2022 we launched the global combat air programme (GCAP) with Japan and Italy.

Operations and exercises

Russia’s illegal, full-scale invasion of Ukraine has seen the UK step up its efforts to reassure our NATO allies in eastern Europe. In late 2022, RAF F-35B aircraft deployed on HMS Queen Elizabeth took part in operations with our NATO allies and joint expeditionary force partners above the waters of northern Europe, underscoring our shared commitment to European security. From March to July this year, the RAF led NATO’s Baltic air policing mission, intercepting 50 Russian aircraft and flying for a combined total of more than 500 hours. Operating from Amari air base in Estonia, RAF Typhoons conducted quick reaction alert (QRA) intercepts, demonstrating our willingness and ability to defend our allies. Typhoons have continued to operate from RAF Akrotiri in Cyprus and from the Falkland Islands, simultaneously safeguarding our security and projecting UK influence. And of course, RAF Typhoons are on constant standby in the UK itself, to protect our own skies and intercept adversary aircraft when they approach our airspace.

Exercises also continue to play a fundamental role in demonstrating our military capability, interoperability with allies and partners, and our shared resolve. Major global deployments have been conducted, with F-35B Lightning aircraft taking part in Exercise Northern Edge in Alaska, and Typhoon playing a key role in Exercise Pitch Black in Australia. Exercises such as these make clear the RAF’s truly global reach and our commitment to Indo-Pacific security. Closer to home, the RAF has taken part in exercises that underline our commitment to Euro-Atlantic security, such as Air Defender in Germany and Tempest Strike/Tower Guardian with Norway and Estonia. In January, Typhoons from RAF Akrotiri exercised with Saudi Arabia, and in March we agreed a statement of intent to further strengthen our combat air relationship.

Across both operations and exercises, the way in which RAF fast jets operate has become fundamentally more agile, with air-to-air refuelling from both home bases and deployed locations, supported by a global network of allies and partners. This has helped the RAF to take part in operations and exercises with over 30 nations over the last 12 months, across Europe, the high north, the middle east and Indo-Pacific.

In addition to evolving how we operate, we continue to invest in our Typhoon and F-35B fleets to keep them ahead of the threat. In July, an £870 million five-year contract was awarded to BAE Systems and Leonardo UK to fit RAF Typhoons with the European common radar system (ECRS) Mk2, one the world’s most advanced, sustaining 600 UK engineering jobs in Edinburgh, Luton and Lancashire. Typhoon has already proven its export potential and we are working closely with industry to pursue further exports to close international partners. Meanwhile, the RAF continues to grow its F-35 fleet, with the next key programme milestone being the stand-up of 809 Naval Air Squadron in December.

The global combat air programme (GCAP)

In December 2022, the Prime Minister and his Japanese and Italian counterparts launched a partnership to design a next-generation combat aircraft to keep us ahead of the threat well into the second half of the century. We are currently in the early but crucial phases of the programme, developing and assessing concepts for a system with the most advanced capabilities, including machine learning to support human operators, open systems architecture to allow rapid and continual upgrade, and extensive digital networks linking forces across air, land and sea to bolster our overall operational advantage.

This is a strategic endeavour in which Japan and Italy are strong partners. Japan, renowned for its industrial base and with a commitment to increasing investment in its self-defence, has invested heavily in advanced combat air R&D, while Italy brings decades of shared experience on the Eurofighter programme. All three partners operate F-35. Progress is well under way, with the UK, Japan and Italy already working together across a range of areas, including concept design, a trilateral engine demonstrator, and advanced on-board electronics to ensure information advantage. The founding partners are open to exploring how others could become involved going forwards, to mutual benefit and aligned to programme schedule.

Here in the UK, the Ministry of Defence continues to work closely with BAE Systems, Leonardo UK, Rolls-Royce and MBDA UK, under the Team Tempest partnership. We are delivering at pace and in April awarded BAE Systems, on behalf of Team Tempest industry partners, a £656 million contract extension to progress vital concepting and technology work. In July, a £115 million contract was awarded to Leonardo UK to develop a flight test aircraft, to be delivered in partnership with 2Excel. Rapid progress is also being made on an advanced flying demonstrator that was announced at Farnborough air show last year, with over 150 hours of simulated flight trials and key aerodynamic engine and ejector seat testing undertaken.

This progress is being enabled by the long-term approach to capability delivery outlined in the 2018 combat air strategy, which recognised the vital importance of a strong and sustainable UK combat air sector. MOD has invested over £1.1 billion in R&D through the future combat air system technology initiative (FCAS TI), with a further £600 million from our Team Tempest industry partners to date, delivering advanced industrial technologies such as digital design and additive manufacturing. These technologies are revolutionising how we deliver advanced combat air, driving efficiency and cutting timelines. Looking ahead, the UK has a proposed budget of over £12 billion over the next 10 years, alongside robust funding from Japan and Italy. Funding requirements will continue to be refined as the programme matures.

In addition to investing in advanced industrial technologies, we are continually working to develop the skills base needed to succeed, now and in the future. The number of skilled people working on the programme is growing quickly, with approximately 3,000 across the UK’s Team Tempest partners, in major combat air hubs including the south-west and north-west of England and Edinburgh. We recognise that today’s students are tomorrow’s lead engineers, which is why we are reaching out to schools and universities, recruiting graduates and apprentices, and propelling them into long-term STEM careers while continuing to attract mature talent.

Next steps

UK combat air will remain crucial for our security and prosperity and that of our allies and partners, both on NATO’s borders with Russia and in the wider world. The RAF will continue to exercise its global reach, conducting operations and exercises from the Euro-Atlantic to the Indo-Pacific. We will continue to invest in our Typhoon and F-35 fleets. On GCAP, we are working intensively with Japan and Italy to establish the core platform concept and the joint structures needed to launch the development phase in 2025, targeting entry into service in 2035.

[HCWS1015]

Defence Industry: Environmental, Social and Governance Considerations

Grant Shapps Excerpts

Tuesday 12th September 2023 Written Statements

[The Secretary of State for Defence (Grant Shapps)]

I wish to make a joint statement with HM Treasury, on behalf of His Majesty’s Government.

The Government are clear that the UK’s defence sector has an integral role in supporting the first duty of Government: to promote and protect the United Kingdom’s core national interests—the sovereignty, security and prosperity of the British people. That includes supporting allies and partners and contributing to broader international security.

Nowhere is this clearer than in Ukraine, where we continue to have a leading role in providing our Ukrainian friends with our support and with vital military aid to resist President Putin’s illegal and brutal war.

Our defence industrial base underpins our armed forces, maintains our continuous at-sea nuclear deterrent, and safeguards our critical infrastructure. The private sector is essential to our national security, whether in peacetime or times of emergency. The ongoing maintenance of critical industrial facilities, skills and intellectual property onshore, and the approach we take to sustain these, gives us confidence that we can continue to operate independently, in defence of the country’s interests, without external political influence and protecting the sensitive technologies that underpin our military capability.

Despite this, defence companies are being excluded from access to debt and equity capital, citing environmental, social and governance (ESG) grounds. This not only threatens an important part of the economy that, through MOD expenditure alone, directly and indirectly supports over 200,000 jobs, but fails to recognise that the UK’s defence industry is essential to protecting our way of life. Such divestment also threatens to increase the cost of procurement, diverting taxpayers’ money away from other defence spending and from public services. The industry’s value to us as a key strategic asset is only increasing at a time of global uncertainty.

As outlined in the Defence Command Paper refresh, this Government assert that there is nothing contradictory between the principles within ESG and the defence industry. On the contrary, a strong national defence, including our nuclear deterrent, is a pre-requisite for the freedoms, including social liberties, that we often take for granted, and the aspirations that investors and financial services companies seek to address using ESG considerations.

As stated in the green finance strategy published this spring, the Government believe that continued private investment in the UK defence industry and our NATO allies is essential to protect the UK national interest, the UK economy and broader environmental and social goals.

Moreover, the UK defence sector has reflected ESG considerations in a range of ways. Industry is driving innovation in new technologies to improve sustainability and companies are embedding ESG metrics into their remuneration structures. Additionally, defence companies are exploring how to raise standards across the board, improve access to information and communicate the positive vision of what they are achieving on these subjects.

While investors must always be free to make their own choices, they should do so on the basis of the facts, and those seeking to inform those choices through providing ESG ratings should be clearer on their methodology and more prompt to correct errors when these are pointed out. Defence spending helps prevent war and helps support the British way of life, and those of our NATO allies and partners.

The MOD is showing leadership itself on the environmental and social agenda, including the application of the social value model within its procurement process —we are focused on tackling economic disparities, tackling climate change and promoting equal opportunity. Through the defence suppliers forum, we are working with industry at a strategic level to build sustainability into defence supply chains and tackle greenhouse gas emissions reduction. Crucially, HM Treasury has also published a consultation on a potential regulatory framework for ESG ratings providers with the aim of improving transparency and promoting good conduct in the ESG ratings business. The Government will, with our industrial partners, continue to explore and champion the wider environmental and social benefit of the defence sector and ensure it continues to represent the highest standards of corporate governance. The Economic Secretary to the Treasury, my hon. Friend the Member for Arundel and South Downs (Andrew Griffith), and I will continue to engage with defence companies and the financial sector on access to investment and financial services for industries critical to our national security.

This Government believe that the important values within ESG should not undermine capabilities developed to help us preserve peace and security, without which sustaining those values would not be possible.

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