(1 week, 5 days ago)
Commons ChamberMy hon. Friend is quite right about the fact that capabilities are now changing in weeks, not months or even years. He is also right about finance. That is why I went to the London stock exchange last week and closed the markets—I think it was the first time a Defence Secretary has ever done that. I wanted to signal that this Government want a new partnership with not just industry and innovators, but investors, and that means changing the way in which defence does its work.
I have met outstanding UK SMEs, such as Supacat, 4GD and many others, which contribute to the sovereign industrial base that our security depends on. However, under the last Government, the percentage of Ministry of Defence direct expenditure going to SMEs fell, from 5% to 4%. Will my right hon. Friend confirm when this Government expect to surpass that record and therefore back the innovation we need to equip our forces and support our allies?
I congratulate and thank my hon. Friend, as well as my hon. Friend the Member for Aldershot (Alex Baker), for the work that they are doing on innovative finance, which will help SMEs in future. I look forward to the publication of their Royal United Services Institute report shortly. I can confirm that SME involvement in the defence supply chain will be boosted by new spending targets that I will set in June to produce exactly the sort of result that my hon. Friend the Member for York Outer (Mr Charters) is looking for.
(1 month, 1 week ago)
Commons ChamberThere was a moment when intelligence sharing with Ukraine was paused, but it was restarted with the momentum behind the talks, at the point at which Ukraine and the US were back on the same page. I am proud to say that the UK played a part in doing that and those arrangements are an important part of Ukraine being able to withstand the onslaught from President Putin.
To support our Ukrainian friends, we need a robust sovereign industrial base. One proposal to help finance that and enhance supply chain security is the creation of a multilateral armament bank, such as the proposed Defence, Security and Resilience Bank. Does the Secretary of State agree with me that the Government should explore that potentially game-changing solution?
Yes, I agree with my hon. Friend, and we are. That is part of the preparation for the defence industrial strategy. We want to find ways to maximise the investment going to British firms and British jobs, while making an important contribution not just to the defence and security of our own country, but to those of our allies as well.