(4 days, 10 hours ago)
Commons ChamberI assure the hon. Gentleman that we are tearing up the way in which procurement works before the national armaments director moves into his place. It is one of the biggest jobs in government, which needs the right salary to attract the right person. I am clear that we will do things differently. The national armaments director will be held accountable for ensuring that we do so.
A lot has happened since the last defence oral questions six weeks ago. The Prime Minister announced the largest sustained increase in defence spending since the end of the cold war, hitting 2.5% of GDP by 2027 and 3% in the next Parliament. I chaired the Ukraine defence contact group of nearly 50 countries—the first European Defence Minister to do so—which secured an extra €1.5 billion of military support for Ukraine. With France, the UK is leading plans to put together a coalition of the willing to secure a peace deal in Ukraine; 31 nations joined a planning meeting last week at the permanent joint headquarters, and there are further meetings there this week as we accelerate that planning. This is a Government stepping up on European security, on Ukraine, on defence spending and in all areas. This is UK leadership in action.
The Government’s commitment to use defence procurement to strengthen our industrial sector is welcome. Will the Secretary of State please outline how the Government are supporting local manufacturers across the UK and ensuring that defence contracts contribute to long-term industrial growth and job creation? In particular, how are they encouraging and supporting companies such as Pargat Housewares in my constituency, which is a private, ethnic minority-owned business and one of the UK’s largest producers of pots, pans and bakeware using advanced and extremely energy-efficient techniques?
My hon. Friend is right that SMEs are often the drivers of productivity and innovation. We recently announced that we will be setting targets for an increasing share of defence contracts to go to SMEs, alongside the formation of a new defence innovation office.