Defence Industrial Strategy

Tanmanjeet Singh Dhesi Excerpts

Monday 8th September 2025 Commons Chamber

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

I welcome the Minister’s announcement and advance sight of the Government’s defence industrial strategy, which rightly seeks to strengthen our sovereign capabilities and to bolster British defence businesses. One element of the strategy is offsetting, as set out on page 7 of the document, whereby contracts with overseas companies will lead to British jobs and novel technologies. The Minister will be aware, however, that while the practice is used in other nations, previous attempts have been abandoned, because they have led to increased costs and complex contract problems. How will the Minister ensure that the Government get the details correct, that the practice will indeed benefit British workers and that the costs are not merely loaded on to other contracts?

[Luke Pollard]

The offset policy that we will shortly consult on with industry provides not just the opportunity for us to bring our industries closer together, but means that in circumstances where we have to buy from a foreign provider, which could be because of quality or specific opportunities, we have the ability to then invest more in UK businesses. This is commonplace and has featured in the Norway deal and in procurement by the Australian Government and South Korea. It is a model that works and it creates an environment where we can mesh our industries together more closely with those of our allies, helping to share research and development costs for new platforms and ensuring that when we are not able to spend money on British purchases, British industry still benefits from increased skills and increased investment in novel technology. This is an area that will directly benefit UK firms and our entire defence ecosystem, especially with those investments in skills, which will last a lifetime for the workers involved and show a real defence dividend.