Oral Answers to Questions

Debate between Richard Foord and James Cartlidge

Monday 25th March 2024 Commons Chamber

[James Cartlidge]

I am aware of those companies, which do an excellent job supporting the supply chain, particularly for our primes and for key programmes, especially naval programmes. I do not recognise the hon. Gentleman’s description of training. As he will be aware, defence is the biggest employer of apprentices in the country. We are doing everything we can to support that. The key is to have a close relationship with industry, and to bring it into our requirements early on, so that it can plan and deliver the supply signal, particularly for skills, to match our demand signal.

[Richard Foord (Tiverton and Honiton) (LD)]

I would like to build on the incisive question asked by the right hon. Member for Rayleigh and Wickford (Mr Francois). More than 125,000 applicants to the British Army were rejected in the past five years. It has emerged that 70% of applicants were dropped or withdrew at the paperwork stage. More than 8,000 withdrew their applications, having waited for at least six months. What consequences will Capita face for this record, and when might the Army bring soldier and officer recruitment back in house?

[James Cartlidge]

I encourage the hon. Gentleman to direct questions about recruitment to the Minister for Defence People and Families. As to the company the hon. Gentleman talks about, my focus is on industry and supporting jobs, which the original question was about. I think we have a fantastic record, boosted by not only the exports I referred to earlier, but the ones that my hon. Friend the Member for Rugby (Mark Pawsey) was talking about.

Defence Acquisition Reform

Debate between Richard Foord and James Cartlidge

Wednesday 28th February 2024 Commons Chamber

[James Cartlidge]

I am honoured by my right hon. Friend. We enjoy our robust exchanges, but that was an example that I shall particularly remember.

The phrase “a sense of urgency” is, I think, what the public want to hear. Important as today’s exchanges are, this is really serious; it is above politics. This is about the fact that our adversaries are ramping up their procurement and their technology—frankly, in some instances, at a frightening pace. That is why embracing the deep relationship with industry, the constant feedback loop on data from the frontline and from war gaming, is so crucial. I think the Committee has an important role in this regard. I set out our intention in my statement, but for it to be embedded we will have a key set of milestones that will enable us, if we work together, to show that it is being implemented; if we can do that together, we can put the pressure on to ensure that it becomes manifest.

[Richard Foord (Tiverton and Honiton) (LD)]

I would like to pick up on the point about urgency. We have seen what the UK is capable of in defence acquisition from urgent capability requirements or, previously, urgent operational requirements. These harness the ingenuity of British industry and combine it with the professionalism of the British armed forces personnel. They remove bureaucracy, focus on the capability rather than detailed specifications, and deliver amazing equipment in very short timescales. A great example is the Jackal, the all-terrain mobility platform that was developed at Dunkeswell in my Honiton constituency. How much is the new integrated procurement model informed by the UCR process?

[James Cartlidge]

On matters of defence procurement, it always strikes me how many former service personnel will raise the issue of urgent operational requirements or whatever else we call them, whatever variation of the acronym. The hon. Gentleman is absolutely right to stress their importance. They are not something that can be used at scale for the whole procurement system, but in specific, urgent areas they are critical, and we will continue to use them. I am considering them in a couple of sensitive areas, which obviously I cannot talk about further, but he makes an excellent point. By the way, the Jackal is an excellent platform. My first trade mission on exports was to the Czech Republic, and the Jackal was there. I was proud to receive glowing reviews about it from the defence select committee there.

Ukraine: Military Equipment

Debate between Richard Foord and James Cartlidge

Tuesday 27th February 2024 Commons Chamber

[James Cartlidge]

My right hon. Friend asks about an excellent point. Both the Secretary of State and I have commented on that. I have held meetings at the Treasury and with defence companies about the ESG—environmental, social and governance—issue, as well as with financial institutions, at Rothschild in the City, because it is extraordinary that anyone should think we should not invest in core munitions when we see now that the cause they support is peace, freedom and democracy. If we do not fund our defence sector, we simply will not be able to defend those fine principles.

[Richard Foord (Tiverton and Honiton) (LD)]

President Zelensky said yesterday that without new military aid from the United States, Ukraine would be unable to defend the Black sea shipping corridor, which has enabled the export of 33 million metric tonnes of Ukrainian grain. That has been enabled in part by the supply by the UK of the Storm Shadow missile and by France’s supply of the SCALP missile. What are the Government discussing with German counterparts about their potential to supply their equivalent, the Taurus missile system?

Oral Answers to Questions

Debate between Richard Foord and James Cartlidge

Monday 19th February 2024 Commons Chamber

[James Cartlidge]

My hon. Friend asks an excellent question. It helps that we have lots of school groups and young people in the Gallery today, it being half term. I can confirm that last year’s defence Command Paper identified skills as a priority, including the shortage of engineering, digital, cyber, STEM, nuclear, and space-based skills. The defence head of profession for engineering, who also supports the Government science and engineering head of profession, has a defence youth engagement strategy that drives STEM outreach activities and the encouragement of engineering uptake in individuals aged four to 14.

[Richard Foord (Tiverton and Honiton) (LD)]

13. What recent discussions he has had with international partners on future military support for Ukraine.

Ukraine

Debate between Richard Foord and James Cartlidge

Tuesday 19th December 2023 Commons Chamber

[James Cartlidge]

Well of course, this is the last sitting day. I would simply say—[Interruption.] I might sound like a stuck record, but this is so important. In this game, what matters is what we actually do on the ground. We have just announced a maritime coalition. We continue to send air defence systems, which are incredibly important. We have sent 300,000 artillery shells, thousands and thousands of helmets, 4 million pieces of small arms ammo. This is what matters. This is the action that delivers. We know there is more to do, and we are going to keep playing that role.

[Richard Foord (Tiverton and Honiton) (LD)]

The Russian energy giant Gazprom earned £39 million last year from the North sea Sillimanite gas field, which is partly underneath UK waters. Gazprom is majority owned by the Russian state and is Russia’s largest taxpayer. Will the Minister talk to his counterparts in the Department for Business and Trade to avoid a situation where UK defence is giving generous military aid while the new Office of Trade Sanctions Implementation overlooks the Russian state funding of its aggression from the proceeds of the sale of North sea gas?

[James Cartlidge]

I am happy to look into that further.

Oral Answers to Questions

Debate between Richard Foord and James Cartlidge

Monday 20th November 2023 Commons Chamber

[James Cartlidge]

My hon. Friend makes an excellent point. Obviously, we strongly want to see defence expenditure benefiting every part of the Union. I can confirm expenditure with industry in Wales amounting to about £744 million. Just to reassure him and show him how importantly we regard Wales, the week before last I heard I held my small and medium-sized enterprise forum in Cardiff at Space Forge, a brilliant Welsh SME that we are supporting with half a million pounds of funding to develop in-space manufacturing of semiconductors. That is a strong example of how we are supporting Welsh SMEs in the defence sector.

[Richard Foord (Tiverton and Honiton) (LD)]

19. What assessment his Department has made of the potential impact of RAF surveillance aircraft on UK strategy and operations overseas.

Oral Answers to Questions

Debate between Richard Foord and James Cartlidge

Monday 11th September 2023 Commons Chamber

[James Cartlidge]

My hon. Friend has been an absolute champion of all matters relating to our relationship with Ukraine. We have seen very rapid procurement, particularly in relation to urgent requirements going into Abbey Wood in his constituency. I understand that he will hold a meeting shortly with some major Ukrainian defence industrialists, which he has kindly invited me to, and I look forward to engaging with him and those companies soon.

[Richard Foord (Tiverton and Honiton) (LD)]

Last September, the right hon. Member for South West Norfolk (Elizabeth Truss) announced £2.3 billion to be made available for Ukraine in this financial year. We are now in another September, with a new Secretary of State. When can we expect that sum of money to be made available to Ukraine?

Armoured Cavalry Programme: Sheldon Review

Debate between Richard Foord and James Cartlidge

Thursday 15th June 2023 Commons Chamber

[James Cartlidge]

I am grateful to my hon. Friend. We are hoping to publish the Command Paper imminently, and it is certainly my hope that it will contain important statements on the issue of acquisition reform. For me, it is an absolute priority; obviously, I would say that as the Minister for Defence Procurement.

My hon. Friend referred to the defence and security industrial strategy. The key point about that is that we see the defence industry as part of our military capability. That has never been more the case, because of the urgent strategy that we need to get replenishment under way due to the stocks we have gifted—for entirely the right reasons—to Ukraine. He makes a very good point.

[Richard Foord (Tiverton and Honiton) (LD)]

I would like to build on the searching question from the right hon. Member for Warley (John Spellar). The Government announced in March that they would resume payments for Ajax towards the £5.5 billion cost. We had been expecting the CVR(T)––combat vehicle reconnaissance (tracked)—to be retired this year and for Warrior to be retired in 2025, but if Ajax is not to reach full operating capability until 2029 at the earliest, how will the capability gap be closed? If that is by extending Warrior, how much additional taxpayer’s money will be spent on extending the life of Warrior?

[James Cartlidge]

The hon. Gentleman asks a very good question. Obviously, it is important that the Army is satisfied with the capability it has, so that it can fulfil its key operational requirements. I am assured that that is the case. Inevitably, if there is delay in one capability coming forward, there will be some impact. We estimate that there is a cost of roughly £200 million to extend the life of Warrior and Challenger 2 in response to delay in this programme and the timescale in relation to Boxer coming forward.

Finance Bill

Debate between Richard Foord and James Cartlidge

2nd reading
Monday 28th November 2022 Commons Chamber

[James Cartlidge]

I am grateful to my hon. Friend. Of course, he was in the Department and has a business background, so he knows the detail and the importance of R&D tax reliefs. I am sure that my hon. Friend the Financial Secretary to the Treasury will have a chance to look at that later. I believe that we will be having a meeting about a separate issue of concern—a certain railway project that matters to him—when we can also discuss these points.

I turn to the specific detail. For expenditure on or after 1 April 2023, the research and development expenditure credit rate will increase from 13% to 20%. The small and medium-sized enterprise additional deduction will decrease from 130% to 86%, and the SME scheme credit rate will decrease from 14.5% to 10%. That reform will ensure that the taxpayer support is as effective as possible. It improves the competitiveness of the RDEC scheme and is a step towards a simplified RDEC-like scheme for all.

That means that Government support for the reliefs will continue to rise in cost to the Exchequer—from £6.6 billion in 2021 to more than £9 billion in 2027-28—but in a way that ensures value for money. To be clear, the R&D reliefs will support £60 billion of business R&D in 2027-28, which is a 60% increase from £40 billion in 2020-21. The Government will consult on the design of a single scheme and, ahead of the spring Budget, work with industry to understand whether further support is necessary for R&D-intensive SMEs without significant change to the overall cost.

[Richard Foord (Tiverton and Honiton) (LD)]

It was indeed welcome to hear the Chancellor talking in the autumn statement about additional money for research and development, but what seemed to be lacking was investment in skills. He talked about skills only loosely, and actually there was not one mention of colleges. Will there be any additional money for colleges as a result of the Bill?

[James Cartlidge]

I am grateful to the hon. Gentleman. In raising education, I hope he will have noted and strongly welcomed the fact that, despite the tough fiscal situation, the Chancellor was able to find additional spending for education—indeed, £2.2 billion this year and next year for our schools. I hope he agrees that that is crucial.

[Richard Foord]

Colleges?

[James Cartlidge]

The hon. Gentleman is right to raise further education. We also announced in the statement that there will be a review by Michael Barber looking at the many positive initiatives that the Government have in place for training and increasing technical and vocational skills—T-levels, for example. We want to see maximum support for such schemes, so we will be reviewing them to ensure that we deliver them as effectively as possible. He makes an important point.

I turn to the measures on personal taxation. We know that difficult decisions are needed to ensure that the tax system supports strong public finances. To begin with, we are asking those with the broadest shoulders to carry the most weight. The Government are therefore reducing the threshold at which the 45p rate becomes payable from £150,000 to £125,140.