Defence Industries: North-East

Lola McEvoy Excerpts

Tuesday 13th May 2025 Westminster Hall

[Luke Myer]

I agree. The best way to ensure that we are building the right approach to procurement is by listening directly to the SMEs that operate on the procurement frontline. I am grateful to the Minister for visiting Teesside to meet the defence and innovation cluster, and for visiting NETPark to meet other businesses. It is clear that she is listening, and that is welcome and appreciated.

[Lola McEvoy (Darlington) (Lab)]

This Government are absolutely determined to reset public procurement for SMEs. In places such as Darlington, we have fantastic SMEs that employ local people, drive local growth, have great terms and conditions, and are a source of local pride. For too long, those SMEs have been missing out because they do not have the bandwidth on a day-to-day basis to put in bids for these contracts, let alone to then offer huge incentives and massive savings, as some of the bigger clients and players in the field can. Does my hon. Friend agree that it would be great to hear from the Minister about the work that she is doing with the Cabinet Office to strengthen public procurement, and to make sure that public money gets into our communities in Darlington?

[Luke Myer]

I thank my hon. Friend for that intervention. By boosting SMEs we boost not only the defence industry, but other sectors, because many of these SMEs are working on dual-use technology, which has a strong crossover with other areas.

Ultimately, growing our sovereign capacity by building more in Britain is a smart and strategic move that will pay off in the long run, both for our national security and our economic growth.

[Luke Myer]

Absolutely. One of those innovative projects in my hon. Friend’s constituency is a semiconductor plant, which the Government stepped up to save with £20 million of investment. That is exactly the kind of active Government and leadership that we need.

The previous Government set up procurement processes with a singular focus, which was awarding contracts to the lowest bidder. That may seem sensible on the surface, but in fact, it has stifled British growth and ultimately cost the taxpayer more. To give an example from Middlesbrough, a local company was forced to step in and finish works that were initially being done by a contractor in south-east Asia, which had been chosen purely because it was the cheapest at the time. Time and time again, we have seen Conservative Governments make decisions on industrial policy that erode our manufacturing base, see jobs disappear overseas and weaken British industry. That Middlesbrough business was there to pick up the pieces and finish the job, but the delay was wholly unnecessary. It ended up costing the British taxpayer more than if we had simply built in Britain from the start.

We need an approach that prioritises British values over mere price. This is about not just securing the cheapest deal but ensuring that every pound we spend strengthens our national security. We must grow our sovereign capacity and put British business first, and support our local economies in the process.

It is also time that we took a more intelligent and long-term approach to defence procurement—one that does not cost us more and builds the kind of capacity that we need here at home, especially in the current global climate. For industries to invest and grow, and train apprentices and support communities, we need to move away from short-term projects and annualised budgets. Businesses need long-term clarity. That will give them stability to plan for the future with confidence.

One SME I spoke to feels that the industrial strategy will help with that, but we can do more to give further confidence to the supply chain, especially through rapid and clear decisions on projects and support for the up-front capital investments that they need to make. This is about investment not only in specialised equipment, but in people. In our region, the jobs in this industry are high-skilled, well-paid and secure, and many of the manufacturers invest strongly in skills and apprentices.

[Lola McEvoy]

In my Darlington constituency, we have a fantastic engineering firm called Cummins. I recently visited the plant, and I want to bring hon. Members’ attention to the fact that they have automated a lot of their processes and, in doing so, have grown their workforce. They have upskilled, reskilled and hired more on the basis of bringing in new technologies. That kind of employment practice is second to none, and we want more of that across our region. As I am sure my hon. Friend would agree, our values around hard graft mean that we are ripe for more defence and manufacturing investment.

[Luke Myer]

I thank my hon. Friend for her intervention, which just goes to show there is a false dichotomy between jobs and automation. A business can be grown well by embracing the future, so I commend Cummins on the work it is doing in her constituency.

The industry needs a strong skills pipeline. There is a role for Government to support these businesses by making sure our workforce has the skills to meet the demands of the coming decades. As I mentioned before, there is also a role for our regional mayors to play in making sure there is a more joined-up local skills landscape and working with education providers and manufacturers to get the best people into the best jobs.