Oral Answers to Questions

Luke Murphy Excerpts

Monday 30th June 2025 Commons Chamber

[Al Carns]

That is an exceptionally valid point. Just last week, I held a consultation with the Disability Minister to ensure that veterans charities, which really speak loudly for veterans, and I could highlight any concerns to him. That was included within the consultation.

[Luke Murphy (Basingstoke) (Lab)]

3. What steps his Department plans to take through the defence industrial strategy to support SMEs.

[Sadik Al-Hassan (North Somerset) (Lab)]

8. What steps he is taking to ensure that SMEs are able to participate in defence procurement contracts.

[The Minister for Defence Procurement and Industry (Maria Eagle)]

The Government’s modern industrial strategy, launched last week, announced a 50% increase in MOD spending with small and medium-sized enterprises to £7.5 billion a year by 2028, reversing the downward trend under the previous Government. Our new SME hub will help small firms to access better opportunities, and our reform of defence procurement, along with ringfenced innovation funds, will give SMEs access to the defence dividend. This Government’s increase in defence spending will provide jobs and growth across the UK.

[Luke Murphy]

Basingstoke is home to some fantastic defence SMEs, including Nightball Technologies and Bertin Exensor, but one issue that has been raised with me is that Government procurement agencies cannot specify UK sovereign tech or sole-source contracts, even where UK capabilities exist. That results in lengthy competitive tenders, where there is a high risk that end users do not get the capabilities that they need and equipment is bought from foreign suppliers. Will the Minister meet with me and firms from Basingstoke to discuss how we can prioritise UK defence SMEs over foreign suppliers, especially where UK sovereign tech exists?

[Maria Eagle]

My hon. Friend makes an interesting point. There is some flexibility under our procurement rules to specify national security grounds upon which to make a decision. Half our spend is already through sole-source contracts. I am of course happy to meet him and his SMEs. We are delivering for defence by promoting new procurement models that are easier for small firms to access, and our SME hub will engage directly with SMEs to help them to access defence supply chains.