Oral Answers to Questions

Philip Dunne Excerpts

Monday 7th December 2020 Commons Chamber

[James Heappey]

My hon. Friend is right to acknowledge the important contribution that defence activities make in helping to create the secure conditions essential for sustained economic development. As he may have heard me say to the hon. Member for Oxford West and Abingdon (Layla Moran), to be constrained by the definition would do a disservice to our freedom of manoeuvre as the Ministry of Defence, but we very much hope that ODA rules could be changed to reflect the very wide range of activities that defence is involved in but that currently are not accounted for as part of our ODA spend.

[Philip Dunne (Ludlow) (Con)]

What assessment he has made of the potential effect on his Department’s procurement policies of the November 2020 changes to the Green Book.

[The Secretary of State for Defence (Mr Ben Wallace)]

The MOD makes procurement decisions based on security, capability requirement, cost, supply chain and other social value considerations and will continue to do so. The November 2020 changes to the Green Book will ensure that there is an increased focus on setting clear objectives and consideration of location-based impacts. MOD footprint and spend is widely distributed across the UK and future procurement will continue to reflect this.

[Philip Dunne [V]]

The potential pragmatism of the Treasury towards its Green Book rules on public procurement is welcome, as it was heralded as one of my recommendations in my report on prosperity two and a half years ago. Does my right hon. Friend believe that this will make clear the prosperity metrics, which the Treasury will recognise when it comes to defence procurement, and will the Treasury accept that a pound spent on defence in the UK is worth more than a multiplier of 1 in the levelling-up impact on the UK economy?

[Mr Wallace]

My right hon. Friend is absolutely right, especially in that last observation, and I congratulate him on his prosperity report. He was clearly thinking ahead of the Treasury at the time, and I am delighted that it has recognised the importance and contribution that those changes will make to levelling up and closing the north-south divide. While the end-of-year rules were not changed, the recent £24.1 billion multi-year settlement with the Treasury will now allow the MOD to invest in next generation military capability across the whole United Kingdom.