Oral Answers to Questions

Robin Walker Excerpts

Monday 19th October 2015 Commons Chamber

[Mr Dunne]

As the hon. Gentleman knows, the Type 26 global combat ship programme is designed to replace the existing frigate fleet—the Type 23. We generally find when updating naval capability that ships with more power and capability can be manned with fewer men, so we do not see any particular challenge with this programme, apart from the natural challenge of recruiting to the armed forces during periods of economic growth.

[Mr Robin Walker (Worcester) (Con)]

10. What steps he is taking to increase the proportion of his Department’s procurement spending that goes to SMEs.

[The Minister for Defence Procurement (Mr Philip Dunne)]

That is me again. Small businesses provide a vital source of innovation and flexibility in meeting defence and security requirements. As I have already said, there was an announcement of a new target earlier this month to increase the proportion of MOD procurement to be spent with small and medium-sized enterprises to 25% by 2020.

[Mr Walker]

Worcestershire hosts many small businesses in the defence, aerospace and cybersecurity sectors. How can these smaller businesses, such as Aeromet in my constituency, access the £70 million investment in innovation announced by the Secretary of State last week?

[Mr Dunne]

We see small businesses and academia as playing a vital part in developing technical innovation, so it is important that they can access this and other funding to maintain the operational advantage of our armed forces. We are doing this in a number of ways. Last month at Defence and Security Equipment International I announced the winners of one of the £10 million defence growth partnership innovation challenges. There were over 100 applications and 23 winners were announced, many of which were small businesses.