(2 weeks, 1 day ago)
Commons ChamberI recognise my hon. Friend’s point, and I will of course meet with him and his SMEs. Over the last six months, the Defence Secretary and I have convened stakeholders from industry and finance to discuss this issue and make it clear that defence is an ethical sector that they should support. The strategic defence review committed us to developing a dedicated financial services sector strategy, which we will aim to publish in spring 2026. That should give us a further opportunity to make sure that the finance industries know what a good investment defence can be.
Our UK defence industry can have few better ambassadors around the world than our Red Arrows. As the Hawk aircraft comes to an end, will the Minister look closely at the British-designed modular aircraft being developed by Aeralis, because it would support SMEs right across our country, including by bringing around 600 jobs to StandardAero in Gosport and about 1,000 to the south Hampshire area? Surely that would be a much better way to support our national SMEs than opting for the Italian-Russian Yak-130 aircraft, which the MOD is rumoured to prefer.
I know Aeralis well; I visited it when I was in opposition, as I know the hon. Member for South Suffolk (James Cartlidge) has done, and I have spoken to its representatives since. Of course, an open competition will be held for the new aircraft to deliver advanced jet training and for an aircraft for the RAF aerobatics team, to ensure value for money and positive UK benefit, and I hope that Aeralis will apply for that competition. It will have a very good chance if its product is up to scratch.
(2 weeks, 6 days ago)
Commons ChamberMy hon. Friend is correct. In addition to the industrial benefits that we ought to glean from increasing the F-35 order, it is absolutely right that it strengthens NATO. That is what the strategic defence review said that we should focus on, and NATO first is what we are doing. Rejoining the NATO nuclear mission is a striking commitment. We accepted the recommendation to make that commitment and we are now implementing it.
I also welcome this announcement, but can we talk about money? We already know that 20% of our defence budget is spent on the nuclear deterrent. It is disproportionately expensive. If we are now extending the nuclear capability with these airdrop weapons, what impact will that have on the budget for the rest of our conventional armed forces?
I welcome the hon. Lady’s support. The F-35As are actually cheaper than the F-35Bs, so replacing 12 F-35B orders with 12 F-35A orders is a cheaper option and she does not have to be too concerned about the direct impact of the decision on budgets. The total cost of the next procurement tranche, including the 12 F-35A models, will be an estimated £3.2 billion, but these are plans that were there and that we are now funding.