PARLIAMENTARY DEBATE
Defence Jobs - 25 March 2024 (Commons/Commons Chamber)

The most recent estimate shows that the Ministry of Defence supports about 209,000 jobs in industries across the UK. I am pleased to say that this figure will be boosted further by the confirmation last week that BAE Systems will partner with a firm in Australia to build its nuclear-powered submarines. That will support 7,000 additional British jobs across the programme’s lifetime.

Would my hon. Friend agree that MOD procurement from small British companies in rural areas such as North Devon can significantly increase defence-related jobs there, and enhance the local economy, especially when those jobs are in high-wage research and development and manufacturing industries? Will he commit to ensuring that the additional high-skilled jobs and economic benefits resulting from contracts are considered in future procurement decisions?

That is an excellent point from my hon. Friend, who is a champion of defence small and medium-sized enterprises in her constituency. As to procurement rules supporting SMEs such as those in North Devon, our new integrated procurement model will ensure that UK industrial capability and exportability considerations are included in procurement evaluation criteria for items such as the new medium helicopter. However, to ensure that we absolutely maximise opportunities for British industry, on Friday, I announced that we will undertake a rapid review of how Cabinet Office social value rules impact on the development of sovereign capability.

The Minister will be aware of the successful export order for high-value naval electric propulsion technology manufactured by GE in my Rugby constituency. That order is going to Singapore, and it was achieved with the assistance of the MOD and the Department for Business and Trade. Does that not show that support for this world-leading British technology enables new business in a fast-developing part of the world, while providing significant, new, high-value jobs for my constituents?

My hon. Friend asks an excellent question. I welcome the valuable contribution of GE in his constituency in supplying high-tech motors, including for Royal Navy ships, such as Type 26 frigates and Queen Elizabeth-class aircraft carriers. It is precisely because the Ministry of Defence recognises the importance of GE’s Rugby facility that we were pleased to reach an agreement with the company in 2019 to ensure that those motors continued to be manufactured there. Finally, he is right about export. It is such a key part of our new integrated procurement model, because it boosts industrial resilience and prosperity in constituencies such as his, while strengthening international alliances, such as, in this case, with the people of Singapore and the Singapore navy.

The Secretary of State will know that Huddersfield is a centre for defence industries; we have David Brown Gears and Reliance Precision, for example. I talk to them regularly. They say to me that one of the things that they miss is trained personnel. The Army, Navy and Air Force used to be the biggest trainer of personnel in the country. The diminished level of training in the armed services is reflected in the sector, which cannot get enough highly trained people to employ.

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.

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?

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.

I call the shadow Minister.

Defence procurement can strengthen UK sovereignty, security and economic growth. We on the Opposition Benches believe that defence investment should be directed first to UK businesses, so that we make, buy and sell more in Britain. With that in mind, what steps is the Minister taking in his rapid review to ensure that social value considerations properly take into account the huge advantages to the UK economy of awarding more contracts to British businesses, so that we create more defence jobs here in the UK? That does not seem to happen at present.

I think there is considerable consensus, because I agree with the right hon. Lady about the importance of sovereign defence capability, and not just because of the economic benefits, although those are crucial. As we enter this era, which has been described as pre-war, it is vital that we have a UK sovereign industrial base. As the Ukrainians have learned, there are certain skills and capabilities that we will need in country, should we get to a hotter military situation, and that is why that is such a priority for us.