22 June 22. Culture change needed at the Ministry of Defence to ensure SMEs in Scotland receive a fair share of defence contracts. The Scottish Affairs Committee today, on the eve of Armed Forces Day, argues that small and medium enterprises (SMEs) in Scotland are being overlooked by the Ministry of Defence (MOD) and its prime contractors when they select companies to fulfil defence contracts.
This is despite Scottish industry having the skills and ambition to match any other part of the UK and the nation being pivotal to the UK’s military infrastructure. While nearly 10% of the MOD’s spending with industry is spent in Scotland, this spending is heavily skewed towards major international prime contractors. Spending with Scottish SMEs accounted for only 2.5% of the MOD’s total spending with SMEs in 2020/21. The Committee heard how Scottish SMEs find it “extremely difficult” to access the UK defence sector and that that “culture change is required” to address UK disparities in spending with SMEs.
Defence in Scotland is however a positive story to tell. In its report, Defence in Scotland: military landscape, the Committee highlights evidence that Scotland’s diverse military capabilities are vital to the UK, for example RAF Lossiemouth’s role in intercepting foreign aircraft in UK airspace. Scottish bases – such as HMNB Clyde and RAF Lossiemouth – are already benefiting from increased funding the UK Government has allocated to defence this Parliament. This funding is having a positive impact on communities and local economies around bases.
The Committee considered the impact of military personnel and their families moving between bases in Scotland and the rest of the UK. The Committee heard how moves can be disruptive for individuals and families adjusting to different education and healthcare systems, and different tax rates. Discussed with UK Defence Minister Baroness Goldie at an evidence session, difficulties transferring professional qualifications such as teaching can be barrier for Armed Forces families moving between England and Scotland. To ease this burden, the Committee recommends that the MOD conduct a review of the information it shares with military personnel moving to bases in Scotland and accelerates efforts to reduce barriers regarding the transfer of professional qualifications.
The UK Government has announced its goal to reduce the defence estate by 30% by 2040, creating fewer and larger sites. The Committee collected evidence that the impacts of base closures in Scotland can vary depending on location. In prosperous areas, bases can become much-needed sites for housing or businesses but, in less affluent areas, the consequences can be damaging and long-lasting, with instances where local people need to leave the area to seek new employment opportunities. To mitigate negative impacts, the Committee recommends that the MOD intensifies its collaboration with Scottish local authorities, including engagement at earlier stages, and that impact assessments for proposed base closures and major expansions be compiled and acted on.
Scottish Affairs Committee Chair Pete Wishart MP said: “Scotland’s contribution to UK defence is undeniable. Our varied Scottish defence estate, ranging from land, sea and air, is pivotal to UK security and vital to our military allies. It’s brilliant news that the UK Government’s increased defence spending is benefiting MOD bases and local communities in Scotland.
“Scotland’s impressive reputation in defence can be enhanced further if more Scottish SMEs are engaged by the MOD to fulfil UK defence orders. The overlooking of Scottish SMEs must change so that different areas of the UK can benefit and contribute to our national security and allow more local economies to thrive.
“The MOD must acknowledge the numerous barriers that Armed Forces personnel and their families face when they move between UK bases. This is an issue likely to be exacerbated with base closures and expansions elsewhere, in Scotland and around the UK, as the MOD looks to reduce its defence estate by 30%. Guidance on differing healthcare and education services, tax and even transferring professional qualifications needs to be reassessed to make sure moves are as smooth as possible.”
In its report, the Committee also requests clarity on the UK Government’s policy on military shipbuilding procurement: an issue that will likely be revisited in its inquiry Defence in Scotland: Military Shipbuilding.
House of Commons and House of Lords Hansard Written Answers
Joint Strike Fighter Aircraft: Procurement
Question for Ministry of Defence
Question
Mr Kevan Jones
Labour
North Durham
Commons
To ask the Secretary of State for Defence, pursuant to the Answer of 20 June 2022 to Question 18824, on Joint Strike Fighter Aircraft Procurement, when his Department plans to sign a contract for the second tranche of 27 F-35 aircraft.
Answer
Jeremy Quin
Conservative
Horsham
Commons
Answered on 23 June 2022
We have informed the US led F-35 Joint Program Office (JPO) of our Tranche 2 purchase intention; however, we do not anticipate being required to complete the next stage of contract activity until 2024.
Army
Question for Ministry of Defence
Mr Tobias Ellwood
Conservative
Bournemouth East
Commons
To ask the Secretary of State for Defence, what recent assessment he has made of the British Army’s capability of engaging a near peer threat.
Answer
James Heappey
Conservative
Wells
Commons
Answered on 23 June 2022
The ability to conduct high-end warfighting remains at the core of the British Army, including remaining a leading contributor to the NATO alliance and the ability to field a warfighting Division.
In accordance with Defence’s corporate governance structures and processes, the Army reports quarterly on its Performance against the goals and objectives set by the Defence Strategy and Defence Plan. The Army is always ready to fulfil the task of protecting the nation and holds various people, units and equipment at various levels of readiness.
Ukraine: Military Aid
Question for Ministry of Defence
John Healey
Labour
Wentworth and Dearne
Commons
To ask the Secretary of State for Defence, when he expects the M190 long-range weapons purchased by his Department for Ukraine to arrive in that country.
Answer
James Heappey
Conservative
Wells
Commons
Answered on 22 June 2022
We expect the M109 to begin arriving in Ukraine imminently.
Ukraine: Military Aid
Question for Ministry of Defence
John Healey
Labour
Wentworth and Dearne
Commons
To ask the Secretary of State for Defence, how many M109 long-range weapons his Department has purchased to gift to Ukraine.
Answer
Jeremy Quin
Conservative
Horsham
Commons
Answered on 22 June 2022
As the Defence Secretary announced on 15 June, the UK has purchased and refurbished more than 20 M109 for delivery to the Armed Forces of Ukraine.
European Fighter Aircraft
Question for Ministry of Defence
Dave Doogan
Scottish National Party
Angus
Commons
To ask the Secretary of State for Defence, how many Typhoon aircraft are in (a) service and (b) storage by tranche as on 16 June 2022; and what are the planned end-of-service dates for each tranche.
Answer
Jeremy Quin
Conservative
Horsham
Commons
Answered on 21 June 2022
There are currently 137 Typhoons either in service or storage with the RAF, the breakdown by tranche is as follows:
Tranche 1- 30 (20 in service / 10 in storage)
Tranche 2- 67 (all in service)
Tranche 3- 40 (all in service)
Although Typhoon’s final out of service date (OSD) remains under consideration, the assumed OSD by each tranche is as follows:
Tranche 1- 31 December 2024
Tranche 2- 31 March 2040
Tranche 3- 31 March 2040
Ukraine: Military Aid
Question for Ministry of Defence
Mr Toby Perkins
Labour
Chesterfield
Commons
To ask the Secretary of State for Defence, what steps his Department is taking to ensure that Ukraine has the military weapons required to defend its territories.
Answer
James Heappey
Conservative
Wells
Commons
Answered on 21 June 2022
Defence continues to play a leading role in helping Ukraine defend its territories, working with Allies and partners to support Ukraine’s right to be a sovereign, independent and democratic nation.
We have already committed £1.3 bn for military operations and aid, including giving Multiple Launch Rocket Systems, to meet Ukrainian Armed Forces’ requests for assistance. We are also making a major contribution to the coordination of military support from our Allies and partners to enable Ukraine to repel Russian aggression.