Defence Industries: West Midlands

Jacob Collier Excerpts

Wednesday 19th March 2025 Westminster Hall

[Sarah Edwards]

I absolutely agree. It is almost as though my hon. Friend predicted what I will speak about next, because I will soon tell a story about a visit that I made. The fact that the company has been in his constituency for 130 years shows that Britain has this prowess, and we do not want to lose it. Through this strategy, we have to ensure that such businesses are still going and that that innovation is being incorporated into technology.

The Business and Trade Committee went to Scotland on Monday. Although ships are manufactured in Scotland, it takes a whole country to build them. The Committee witnessed the incredible shipbuilding work taking place at the BAE Systems site in Govan. The commitment to skills development in Scotland is impressive, with competitive apprenticeship programmes open to all ages, allowing career changes and retraining. The programmes are more competitive than gaining a place at Oxford University, highlighting the value of practical skills and apprenticeships. The narrative that university is the only option to success has, in part, fuelled a shortage in skills.

During our visit, I stood onboard HMS Cardiff in its fit-out stage and saw where HMS Birmingham will soon start the next phase of its construction, in a giant hangar that is large enough for two ships to be built side by side. The Type 26 frigates being built in Scotland are world-class and, when used properly, will be crucial for our trade diplomacy strategy, with many countries eager to buy British.

A key theme raised as being important to the success of the defence industrial strategy was the continuity of work to preserve an essential skills base. For example, steel may come from Port Talbot in Wales, making up 4% of the cost of a ship, but 25% of the cost is in the combat systems, requiring digital engineering and design expertise found in places such as Hertfordshire. Fostering innovation across the defence and civil sectors such as aerospace is crucial, as demonstrated by the evidence given to the Business and Trade Committee yesterday by Airbus, which said that more than 50% of the supply chain is both defence and civil.

Our visit reinforced the importance of a collaborative, nationwide approach to defence. From steel manufacturing to advanced digital systems, every region and nation of the UK contributes to defence and innovation, playing a part in our national security. Will the Minister meet me and defence companies in my constituency to talk about how they can continue to play a part—and, indeed, play a greater part—in the endeavour that the Government have set out? To ensure the long-term security and strength of our defence and industrial sectors, we must build that greater resilience in our supply chains.

[Jacob Collier (Burton and Uttoxeter) (Lab)]

I thank my hon. Friend for securing the debate and for the way she is leading it. In my constituency, we have JCB, which is a major employer and manufacturer, but we also have Crestchic Loadbanks, which is an SME that often finds it difficult to get access to Government contracts. Does she agree that, as we look at the defence industrial strategy, we have to ensure that we are backing British business and that all those companies can make a contribution to our shared national defence?

[Sarah Edwards]

I absolutely agree. We have to back British, we have to buy British, and we have to keep the west midlands in pole position, innovating and ensuring that companies working across civil and defence can get the maximum benefit from the new procurement contracts coming from the MOD.

A comprehensive review of the UK supply chain is essential to ensure that SMEs have visibility and fair access to Government contracts. Smaller businesses often struggle to break into large procurement processes dominated by major players, and access to funding is difficult. Again, the annual funding cycles were cited by Flare Bright and Gibson Robotics as problematic for growing SMEs in the evidence we heard yesterday.