Recommendations & Conclusions
144 items
1
Conclusion
First Report - Defence in Scotland: mil…
Scotland is experiencing a new era of confidence and investment in the defence sector. We welcome the MOD’s clear commitment to Scotland, shown, for example, by making it home to the UK’s submarine service, the new fleets of P8 Maritime Patrol and E-7 Wedgetail aircraft and that Scotland will host …
Government response. Grouped response for 1, 2, 3 MOD is firmly committed to the future of Defence in Scotland and its continued vital role in maintaining UK security. Likewise, we are grateful to the Committee for highlighting the positive role that the …
Scotland Office
2
Conclusion
First Report - Defence in Scotland: mil…
We welcome the increased military capabilities the MOD is gaining in Scotland, especially in light of ongoing increases in Russian aggression, and the importance that Scotland’s military capabilities play in strengthening the UK’s international alliances, such as NATO.
Government response. Grouped response for 1, 2, 3 MOD is firmly committed to the future of Defence in Scotland and its continued vital role in maintaining UK security. Likewise, we are grateful to the Committee for highlighting the positive role that the …
Scotland Office
3
Conclusion
First Report - Defence in Scotland: mil…
We note that the 2014 commitment to increase the number of Regular Armed Forces personnel has been superseded by changing strategic priorities. We welcome the 2021 Future Soldier programme to increase the number of battalions in Scotland and that Scotland will host a greater proportion of the Army in the …
Government response. Grouped response for 1, 2, 3 MOD is firmly committed to the future of Defence in Scotland and its continued vital role in maintaining UK security. Likewise, we are grateful to the Committee for highlighting the positive role that the …
Scotland Office
4
Conclusion
First Report - Defence in Scotland: mil…
Accepted
We welcome the MOD’s high level of spending with Scottish industry (around 10% of total spending with industry) but are concerned that this spending is very heavily skewed towards major international prime contractors rather than SMEs. This is illustrated by the fact that only 2.5% of the MOD’s spending with …
Government response. The MOD recognises the skills offered by Scottish SMEs but rejects the view that there is an engrained hesitancy within the defence sector towards working with them, and outlines various initiatives to support SMEs.
Scotland Office
5
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
The MOD should, with the assistance of the Scotland Office, initiate a culture change process within its own ranks, and in its prime contractors, that addresses perceptions of engrained hesitancy towards working with SMEs in Scotland, with a view to increasing the proportion of SME spending north of the border …
Government response. The MOD notes the Committee’s recommendation and welcomes further involvement from Scottish SMEs in the Defence supply chain and notes the MOD has a target that 25% of its procurement spend will go directly and indirectly to SMEs by the …
Scotland Office
6
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
The military shipbuilding sector provides an important pipeline of highly skilled jobs for Scottish industry. While current Royal Navy Type 26 and Type 31 orders are very welcome, the future of the sector is dependent on favourable UK Government policies and a regular ‘drumbeat’ of orders, which we will explore …
Government response. The Government acknowledged the committee's highlighting the prosperity benefits that shipbuilding brings to Scotland, and mentions the National Shipbuilding Strategy Refresh and investment in UK shipbuilding, including opportunities for Scottish shipbuilders.
Scotland Office
7
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
The UK Government should clarify definitively its position on whether current policies potentially allow for Royal Navy warships (such as destroyers, frigates and fleet solid support ships) to be procured and/or built overseas. If this potential exists—which could have a dramatic impact on shipbuilding in Scotland—the MOD should indicate the …
Government response. The Government acknowledged the committee's concerns about the potential for warships to be procured/built overseas, mentions the National Shipbuilding Strategy Refresh and investment in UK shipbuilding, and says it will consider the long-term industrial impact of different options.
Scotland Office
8
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
MOD base closures, base expansions, speculation on base closures and reversals/ changes in basing decisions can all have major consequences for local communities in Scotland. All of the local authorities we heard from—regardless of whether they were facing MOD increases or decreases—desired greater collaboration with the MOD on basing decisions.
Government response. The MOD acknowledges the committee's conclusion and states it will continue to work closely with stakeholders on the release of surplus Defence land, as well as the maintenance and development of Defence establishments in Scotland.
Scotland Office
9
Conclusion
First Report - Defence in Scotland: mil…
The formal partnership arrangement between the MOD and Argyll and Bute Council has been a great success and should be seen as a model for MOD interactions with Scottish local authorities. The MOD and relevant local authorities in Scotland should work together to increase the use of formal partnership arrangements.
Government response. MOD thanks the Committee for highlighting the success of the Argyll and Bute partnership arrangement and is committed to working with Scottish local authorities including through the use of formal partnership arrangements where appropriate.
Scotland Office
10
Conclusion
First Report - Defence in Scotland: mil…
The MOD should intensify its collaboration efforts with all Scottish local authorities facing base closures or base expansions, and engage with them at earlier stages in those processes. The MOD should also work with Scottish local authorities to jointly produce, and act on, impact assessments to help ease local challenges …
Government response. MOD notes the Committee’s recommendation. As indicated at paragraph 8, basing decisions are made entirely on military requirement after considered assessment and scrutiny. Local economic assessments are not routinely conducted. However, MOD will continue to work with local authorities to …
Scotland Office
11
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
While defence is wholly reserved to the UK Government, MOD decisions on military basing nonetheless have significant implications for areas of devolved competence, such as child education, healthcare and housing.
Government response. The MOD was proud to launch the revised ten-year UK Armed Forces Families Strategy (2022– 32) in January 2022 and will continue to engage with its stakeholders to ensure fair and equitable treatment of service personnel across the UK.
Scotland Office
12
Conclusion
First Report - Defence in Scotland: mil…
MOD engagement processes on military basing decisions currently take place predominantly between the MOD and affected local authorities and health boards. While this approach might work in England, in Scotland an adapted approach is needed in order to recognise the different regulatory frameworks and the role of the Scottish Government …
Government response. MOD acknowledges that basing-related engagement takes place at the operational level with affected local authorities and health boards; this should continue between Officials best placed to handle both the detail of infrastructure delivery and policy issues arising from it, where …
Scotland Office
13
Conclusion
First Report - Defence in Scotland: mil…
The MOD should increase its efforts to collaborate with the Scottish Government on basing decisions. This would facilitate improved information sharing, in both directions—for example, in relation to future basing intentions and the likely impact on local communities.
Government response. We have had to make some difficult decisions to reduce the size of the Defence estate in Scotland and elsewhere in the UK. Whilst basing decisions are based entirely on military requirement after considered assessment and scrutiny, it is recognised …
Scotland Office
14
Conclusion
First Report - Defence in Scotland: mil…
The Scottish Government must commit to properly funding local authorities and health boards local to military bases to ensure there is sufficient provision in place. This was not the case for dental and maternity services for military families in Moray. Defence in Scotland: military landscape 37 Both of these efforts …
Government response. While outwith the locus of the MOD, I have asked my officials to share this recommendation with their SG counterparts. Movement of personnel in and out of Scotland
Scotland Office
15
Conclusion
First Report - Defence in Scotland: mil…
While improvements have been made in this area—for example the Scottish Government’s ‘Welcome to Scotland’ guide—there is scope for the MOD to be more proactive in the information it routinely shares with Armed Forces personnel and their families when they move to bases in Scotland, and from Scotland.
Government response. Grouped response for 15, 16 MOD notes the Committee’s recommendation that there should be improved awareness amongst Armed Forces personnel and their families on the differing education, healthcare, tax and professional qualifications systems. We are committed to continuing to work …
Scotland Office
16
Conclusion
First Report - Defence in Scotland: mil…
The MOD should conduct a review of the formats and quality of information it proactively and routinely shares with all Armed Forces personnel and their families when they move to bases in Scotland, and from Scotland. The Scottish Government should also review their own information to make the transition for …
Government response. Grouped response for 15, 16 MOD notes the Committee’s recommendation that there should be improved awareness amongst Armed Forces personnel and their families on the differing education, healthcare, tax and professional qualifications systems. We are committed to continuing to work …
Scotland Office
17
Recommendation
First Report - Defence in Scotland: mil…
Accepted
The UK Government should accelerate work with relevant responsible bodies across the UK to reduce barriers that military spouses and partners face when attempting to transfer their professional qualifications—for example, teaching qualifications— between UK nations. In line with the Armed Forces Covenant, military spouses and partners should not be disadvantaged …
Government response. The government states that the Scottish Credits and Qualifications Framework Partnership (SCQFP), the Training, Education, Skills, Recruitment and Resettlement team (TESRR) of MOD and Skills Development Scotland, have collaborated to simplify the current system for mapping and translating qualifications and …
Scotland Office
18
Recommendation
First Report - Defence in Scotland: mil…
Deferred
We welcome the MOD’s annual payment to 7,000 Armed Forces personnel in Scotland. However, the Scottish Government should consider an exemption from the extra income tax in Scotland, and for the spouses of Armed Forces personnel. (Paragraph 94) 38 Defence in Scotland: military landscape
Government response. The government says armed forces personnel should be treated equally across the UK, notes that some service personnel in Scotland are compensated for higher income taxes, and has asked officials to share the recommendation with Scottish Government counterparts.
Scotland Office
1
Conclusion
Fourth Report - Defence in Scotland: mi…
Rejected
The UK Government’s approach to procuring warships has shifted in recent years, and it is no longer the default position that warships will be designed and built fully in the UK, which was of concern to some in the Scottish military shipbuilding sector.
Government response. The MOD disagrees that its approach has shifted away from designing and building warships fully in the UK. They state the DSIS provides flexibility and considers long-term industrial impact, and the Shipbuilding Tsar will maximize UK content where possible.
Scotland Office
2
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
If bids from Scottish yards are to be fairly compared with those of their international competitors, this process should be based on a full analysis of their respective benefits, including the benefits to the local economy and in additional tax revenue collected in the UK. However, it is not clear …
Government response. The Government seeks to account for the wider benefits from shipbuilding procurement programmes through the application of the Social Value model and regional assessments. The NSO also works with MOD procurement teams to ensure economic benefits are considered.
Scotland Office
3
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
In its response to this report, the UK Government should set out what work it did, in preparing the National Shipbuilding Strategy Refresh, to estimate and measure the benefits of procuring ships domestically for the Scottish economy and the wider UK economy, and the revenue generated for the Scottish Government …
Government response. The Government stated they seek to account for the wider benefits from shipbuilding procurement programmes through the application of the Social Value model. The National Shipbuilding Office (NSO) and the MOD have undertaken a series of regional assessments to better …
Scotland Office
4
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
The decision to award the Fleet Solid Support (FSS) ships to the international consortium Team Resolute is an example of a shift in the UK Government’s approach to warship procurement. We note that the UK Government chose the Team Resolute bid over a Team UK bid that would reportedly have …
Government response. The MOD states that the decision to award the Fleet Solid Support ship contract to Team Resolute did not prioritise short-term savings and that the decision was the result of a fair and open competition, supporting the objectives of the …
Scotland Office
5
Recommendation
Fourth Report - Defence in Scotland: mi…
Not Addressed
The UK Government should set out its reasoning for selecting Team Resolute as the preferred bidder for building the new order of Fleet Solid Support ships. Specifically, it should confirm whether the bid from Team Resolute offered the lowest price to the UK Government of the bids submitted.
Government response. The government stated that the decision to award the Fleet Solid Support ship contract to Team Resolute did not prioritise short-term savings, that Scottish shipyards are building Type 26 and Type 31 frigates, and that both Harland & Wolff and …
Scotland Office
6
Conclusion
Fourth Report - Defence in Scotland: mi…
Rejected
The Secretary of State told us that Team UK’s bid for the Fleet Solid Support contract was “non-compliant” with the terms of the competition but did not give further details. We would welcome further information to help understand the Government’s reasoning.
Government response. The MOD declined to provide further details on why Team UK's bid was non-compliant, citing commercial interests of the bidders.
Scotland Office
7
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response to this report, the UK Government should confirm on what date it determined that Team UK’s bid for the Fleet Solid Support ships contract was non- compliant with the terms of the competition, what work was done to resolve the compliance issues identified, and on what date …
Government response. The government stated that bidders were fully aware of the evaluation criteria and that Team Resolute was informed of the decision on 10 November 2022, formally appointed on 15 November 2022.
Scotland Office
8
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The export of the Type 26 and Type 31 design licences is a great success story for the Scottish shipbuilding industry, and we are confident that further exports will follow. At the same time, export opportunities cannot be depended upon to provide consistent work for the Scottish military shipbuilding industry …
Government response. The MOD notes the success of exporting the Global Combat Ship, estimating it will create/sustain 5,000 export-led jobs and enable £6bn in potential export contracts. They state the NSbS Refresh recognizes the role of exports in growing the shipbuilding enterprise.
Scotland Office
9
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The role of exports of military ships/design licences in the National Shipbuilding Strategy should be to supplement, and not to replace, domestic demand. The UK Government should be prepared to use shipbuilding contracts strategically to sustain shipbuilding capacity in Scotland in circumstances where the export environment is more challenging than …
Government response. The MOD noted the success of exports, estimating they will create or sustain 5,000 export-led jobs in the UK and will enable c.£6 billion of potential export contracts to flow to UK suppliers. The NSbS Refresh recognizes the role that …
Scotland Office
10
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the National Shipbuilding Office is a welcome development that can bring greater coherence to shipbuilding planning. At the same time, we note that the NSO does not have formal powers and will therefore rely on its ability to manage and influence stakeholders.
Government response. The NSO is a strategic organization that oversees all of the Government’s shipbuilding interests. The NSO reports to the Secretary of State for Defence, who in his role as Shipbuilding Tsar has the ability to hold other Ministers to account …
Scotland Office
11
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
The UK Government should carry out and lay before Parliament a formal evaluation of the contribution of the National Shipbuilding Office after two years, and again after five and ten years, to assess whether it has succeeded in driving better strategic decision-making in shipbuilding. As part of this review, the …
Government response. The NSO is gathering the required data to monitor and assure the delivery of the Refresh and is suitably empowered to provide strategic oversight of all Government activity across the shipbuilding enterprise and is committed to demonstrating accountability and value …
Scotland Office
12
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The establishment of a National Shipbuilding Office hub in Edinburgh provides a welcome link to Scottish shipbuilders.
Government response. The Department is pleased that the committee recognizes the importance of the NSO’s physical presence in Scotland and has signed a lease for a base in Queen Elizabeth House in Edinburgh.
Scotland Office
13
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
To enhance its relationships with the Scottish shipbuilding sector, the National Shipbuilding Office should, by the end of 2023, establish a permanent staff presence in its Edinburgh hub, as the MoD and NSO have indicated. (Paragraph 40) The shipbuilding pipeline
Government response. The Department stated that they have already signed a lease for a base in Queen Elizabeth House in Edinburgh, which will be used by the NSO to host its staff and support visits. The NSO is advertising jobs based in …
Scotland Office
14
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline the importance to Scottish shipyards of maintaining a dependable ‘drumbeat’ of orders to allow them to invest and grow. The days of ‘feast and famine’ must not return. The creation of the National Shipbuilding Strategy suggests that the UK Government appreciates the importance of this point. …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders and the NSbS aims to provide a sustainable demand signal through a 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
15
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Government should provide greater clarity about the work that will fill the whole of the 30-year shipbuilding pipeline into the 2030s and 2040s. It is of course difficult to calculate precise military needs beyond 2050. However, the UK Government should give Scottish shipbuilders the confidence to continue to …
Government response. The MOD recognises the importance of maintaining a regular drumbeat of orders and refers to the NSbS and the 30-year Shipbuilding Pipeline. However, the details of shipbuilding programmes in the later decades will come with time.
Scotland Office
16
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Recent developments have introduced uncertainty about some orders in the pipeline and whether it sets out a clear ‘drumbeat’ of orders needed to sustain Scottish shipyards. The Fleet Solid Support Ships and the National Flagship are two examples. There has been some media speculation about the Type 32s, although the …
Government response. The MOD recognizes the importance of a regular drumbeat of orders. The 30-year cross-Government Shipbuilding Pipeline of over 150 new vessels aims to provide a sustainable demand signal, encouraging industry investment. The NSO will update the pipeline at each multi-year …
Scotland Office
17
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response to this report, and in its annual shipbuilding update to the Defence Select Committee, the UK Government should provide an update on the current status of the military shipbuilding pipeline for Scottish naval yards. In particular, it should confirm whether the MOD still intends to order the …
Government response. The government stated its intention to have more frigates and destroyers. The T32 programme is in concept phase, the National Flagship was suspended to bring forward the Multi Role Ocean Surveillance (MROS) ships.
Scotland Office
18
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The award of the contract to build five additional Type 26 frigates to BAE Systems is welcome news for Scottish shipbuilding, and importantly continues the shipbuilding ‘drumbeat’ into the medium-term. We note that, partly as a consequence of global challenges, the first batch of Type 26 vessels has faced delays …
Government response. The government acknowledged the delays and increased costs of the first batch of Type 26 vessels due to global challenges.
Scotland Office
19
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
Given the ongoing global uncertainties we ask the UK Government to provide annual updates on the construction of the Type 26 vessels to both Houses of Parliament. We note that the Defence Select Committee has made a similar recommendation, but that the Ministry of Defence has not yet provided such …
Government response. The MOD welcomes the committee’s interest in the construction of Type 26 and will consider its request when providing updates to Parliament on key Defence programmes.
Scotland Office
20
Conclusion
Fourth Report - Defence in Scotland: mi…
Rejected
The decision to select Team Resolute bid as the preferred bidder for the upcoming order of Fleet Solid Support ships could create a potential gap in the workstream for the Scottish warship industry.
Government response. The MOD disagrees that the Fleet Solid Support contract creates a gap in work for Scottish shipyards, citing ongoing Type 31 and Type 26 frigate construction. They claim delaying the build of Fleet Solid Support ships would put vital capability …
Scotland Office
21
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response, the UK Government should set out how much capacity it expects to now be available in the Scottish warship industry in each of the years between 2025– 2032 as a result of the decision to select Team Resolute rather than Team UK as the preferred bidder for …
Government response. The Fleet Solid Support contract will still provide opportunities for Scotland in Harland and Wolff’s Methil and Arnish sites, stating there will be ample opportunity for Scottish naval shipyards to fill their order books over the next decade. The NSO …
Scotland Office
22
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
We note that the MOD did not agree with the concerns expressed by Scottish SMEs during our Defence in Scotland: military landscape inquiry about the difficulties they experienced engaging with the Ministry. The steps the UK Government outlined in its response to our report are encouraging; however, we believe the …
Government response. The MOD published the SME Action Plan in 2022 which outlines the commitments being made to increasing and supporting opportunities for Small and Medium Enterprises (SMEs). The Department for Transport is the lead Government Department for the Regional Maritime Cluster …
Scotland Office
23
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
The Ministry of Defence should, in line with its commitments in the National Shipbuilding Strategy and the UK Government’s commitments in Maritime 2050, work specifically to develop shipbuilding clusters in Scotland. In responding to this report, the UK Government should update us on what it has already done to support …
Government response. The MOD referenced its SME Action Plan and engagement with the Scottish Supplier Development Programme as actions already in place to support shipbuilding clusters and address barriers to Scottish SMEs.
Scotland Office
24
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
The Ministry of Defence should report back to us at the end of the financial year to confirm whether it met its target of spending 25 per cent of its procurement spend with SMEs. In addition, it should provide an update on what proportion of its spend with SMEs is …
Government response. The MOD stated that they had a target of 25% SME procurement spend by the end of 2022, with Scottish SMEs playing a significant role, and that figures are being gathered and will be published. They also stated that regional …
Scotland Office
25
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
We heard that including a social value component in shipbuilding contracts can help deliver benefits for the wider economy and in shipbuilding communities. However, there are challenges in measuring how effectively those commitments are being delivered on.
Government response. The NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered. Under the Cabinet Office Social Value Model, the contracting authority is also mandated to assess the supplier’s performance.
Scotland Office
26
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
The MOD should set out how it evaluates social value in competitions, how it measures the delivery of social value in the contracts it negotiates, and how it holds contractors accountable to ensure they meet those targets. It should also, as contracts progress, track the delivery of social value and …
Government response. The MOD uses the Cabinet Office Social Value Model, measures delivery through standard reporting metrics, contract-specific metrics, and a Social Value Key Performance Indicator, and manages performance through reporting obligations, performance management terms, and a formal framework for managing relationships …
Scotland Office
27
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard that historically the Ministry of Defence’s understanding of shipbuilding supply chains had been a vulnerability. The Secretary of State told us this had subsequently improved. The new Defence Supply Chain Strategy’s emphasis on building resilience in supply chains is welcome, and improving understanding of supply chains further will …
Government response. The MOD is operating a Supply Chain Resilience Programme and introducing a new Defence Condition (DEFCON) to improve understanding of supply chains and address vulnerabilities.
Scotland Office
28
Recommendation
Fourth Report - Defence in Scotland: mi…
Rejected
The Ministry of Defence should publish data on the composition of shipbuilding supply chains, to assist understanding of how the UK shipbuilding industry is structured. This should include regional breakdowns so that the extent of local supply chains and industry clusters can be better understood by Government and industry.
Government response. The MOD did not commit to publishing data on the composition of shipbuilding supply chains and instead outlined existing initiatives to understand and improve supply chain resilience.
Scotland Office
29
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard evidence that the MOD and the Scottish Government could both have a better understanding of the skills profile of the shipbuilding workforce. This makes workforce planning for a highly advanced sector like military shipbuilding more challenging.
Government response. The UK Shipbuilding Skills Taskforce (UKSST) seeks to address this challenge by collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy. The UKSST includes representatives from both Skills Development Scotland and …
Scotland Office
30
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
Building on the work of the UK Shipbuilding Skills Taskforce, the Ministry of Defence should commission regular research to develop and keep up to date its understanding of the current and future skills profile of the shipbuilding workforce, and the skills needed by the shipbuilding sector. Given education and skills …
Government response. The government states that the UK Shipbuilding Skills Taskforce (UKSST) is already addressing this challenge and includes representatives from Skills Development Scotland and Scottish industry.
Scotland Office
31
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the UK Shipbuilding Skills Taskforce shows a welcome recognition of the importance of long-term workforce planning in shipbuilding. This kind of planning is essential if Scottish yards are to have the highly-skilled workers they need to thrive in the future. We look forward to the publication of …
Government response. The NSO agrees that workforce planning by the UKSST is essential. The 30-Year Cross-Government shipbuilding pipeline provides transparency and encourages investment in skills. The NSO also recognizes shared ambitions between the work of the UKSST and Scotland’s National Strategy for …
Scotland Office
32
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted in Part
We invite the UK Shipbuilding Taskforce, together with UK Government Ministers, to give oral evidence to the Committee when the UKSST’s report is published in autumn 2023, so that its findings can be discussed further and priorities identified to ensure Scottish shipyards have the skills they need.
Government response. The Chair of the UKSST, with support from Government, would be pleased to meet with the Committee following publication of its report.
Scotland Office
33
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline that the additional complexity of building warships demands highly specialised skills and knowledge, and that these will need to be updated and refreshed as warship design and manufacture evolves.
Government response. The UKSST will consider the skills requirements and know-how for the entirety of the shipbuilding enterprise, including the warship, commercial, workboat and leisure market sectors, both in the short and long term. The UKSST will also consider the impact of …
Scotland Office
34
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Shipbuilding Skills Taskforce’s report should identify the skills demands of the warship industry specifically, as well as steps that can be taken to meet those needs.
Government response. The UKSST will consider the skills requirements and know-how for the entirety of the shipbuilding enterprise, including the warship, commercial, workboat and leisure market sectors, both in the short and long term. The UKSST will also consider the impact of …
Scotland Office
35
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Skills policies will best support the shipbuilding industry if the UK and Scottish Governments’ approaches complement each other. For this to happen, education policymakers in Scotland will need to be able to receive clear signals about the skills needs of the defence sector, and will need routes for working together …
Government response. The UKSST, NSO and DfE welcome the signal from the Committee to work collaboratively to meet the skills needs of the sector through the existing education system. The NSO has committed to providing transparency on future orders and a stable …
Scotland Office
36
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Shipbuilding Skills Taskforce should have a specific objective to encourage coordination between different jurisdictions in the UK, so that a common effort can be made towards supporting shipbuilding in Scotland and other parts of the UK. (Paragraph 98) 8 Defence in Scotland: military shipbuilding Introduction Shipbuilding in Scotland
Government response. The UKSST, NSO and DfE welcome the signal to work collaboratively to meet skills needs, recognizing skills is a devolved issue. The UKSST is committed to ensuring its recommendations work for all UK nations and has worked with Devolved Administrations.
Scotland Office
37
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the National Shipbuilding Office is a welcome development that can bring greater coherence to shipbuilding planning. At the same time, we note that the NSO does not have formal powers and will therefore rely on its ability to manage and influence stakeholders.
Government response. The NSO is a strategic organization overseeing the Government’s shipbuilding interests, working with Departments to optimize shipbuilding requirements and reporting to the Secretary of State for Defence.
Scotland Office
38
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
The UK Government should carry out and lay before Parliament a formal evaluation of the contribution of the National Shipbuilding Office after two years, and again after five and ten years, to assess whether it has succeeded in driving better strategic decision- making in shipbuilding. As part of this review, …
Government response. The government states that the NSO is gathering the required data to monitor and assure the delivery of the Refresh, and reports to the Secretary of State for Defence who has the ability to hold other Ministers to account. They …
Scotland Office
39
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The establishment of a National Shipbuilding Office hub in Edinburgh provides a welcome link to Scottish shipbuilders.
Government response. The Department are pleased that the committee recognises the importance of the NSO’s physical presence in Scotland. The NSO is using the Edinburgh base to host staff, support visits and engagement and has made the space available for other Departments …
Scotland Office
40
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
To enhance its relationships with the Scottish shipbuilding sector, the National Shipbuilding Office should, by the end of 2023, establish a permanent staff presence in its Edinburgh hub, as the MOD and NSO have indicated. Defence in Scotland: military shipbuilding 19 2 The shipbuilding pipeline Benefits of a shipbuilding ‘drumbeat’
Government response. The NSO has signed a lease for a base in Queen Elizabeth House in Edinburgh to host its staff and support engagement. The NSO advertises all its job vacancies to be based from either its Edinburgh or London offices.
Scotland Office
41
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
A theme we heard repeatedly emphasised during our inquiry was the importance of a regular ‘drumbeat’ of orders to provide a consistent workload that could help industry plan for the future. Stakeholders from all parts of the sector stressed that shipbuilding is an industry that operates on long timescales and …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and the NSbS aims to provide a more sustainable demand signal from Government through a 30-year cross-Government Shipbuilding Pipeline. The NSO has committed to …
Scotland Office
42
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Stakeholders also emphasised that a steady ‘drumbeat’ could underpin future investment that would make the industry more productive in the future. Mr Waddell told us: It is a very simple equation. If businesses are faced with uncertainty, they do not invest. If they are faced with certainty and can guarantee …
Government response. The MOD recognises the importance of a regular drumbeat of orders and states the NSbS and 30-year pipeline aim to provide a sustainable demand signal. They also highlight workforce and programme details.
Scotland Office
43
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In written evidence, the UK Defence Journal set out their understanding of the shipbuilding pipeline for BAE Systems and Babcock as of April 2022 (Table 1). 64 BAE Systems (DIS0030) 65 UK Defence Journal (DIS0022) 66 Q2 67 Q3 68 Q12 69 UK Defence Journal (DIS0022); BAE Systems (DIS0030); Q144 …
Government response. The MOD fully recognises the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry. The NSbS is clear that we do not want a return to the “boom and bust” cycles of historic Naval demand, but to …
Scotland Office
44
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In his foreword to the National Shipbuilding Strategy Refresh, the Defence Secretary says the UK Government “will give industry a much clearer demand signal about what we are trying to achieve with our procurement programmes” and that for the first time the 70 Professor Trevor Taylor, RUSI (DIS0033) Defence in …
Government response. The MOD recognises the importance of a regular drumbeat of orders and states the NSbS and 30-year pipeline aim to provide a sustainable demand signal. They also highlight workforce and programme details.
Scotland Office
45
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Some parts of this pipeline have since been confirmed, such as the confirmation that the second batch of Type 26 frigates would be built by BAE at Govan (considered in more detail later in this chapter).73 However, the pipeline is also subject to change. The Refresh explains that The NSO …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and highlights the 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
46
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
Other elements of the pipeline face questions, including the Type 32 frigates, which under the pipeline suggested above would be built by Babcock at Rosyth from 2028 into the late 2030s. A National Audit Office report in November noted that, in July 2022, Navy Command withdrew its initial plans for …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and the NSbS aims to provide a more sustainable demand signal from Government through a 30-year cross-Government Shipbuilding Pipeline. The NSO has committed to …
Scotland Office
47
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In addition to uncertainty around the Type 32 frigate, the selection of Team Resolute as the preferred bidder for the Fleet Solid Support ships contract (as discussed in paragraphs 20–27 above) also means that the FSS vessels (considered later in this chapter) will not be forming part of the drumbeat …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and highlights the 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
48
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Representatives from the shipbuilding industry told us that having sight of upcoming shipbuilding projects over the coming decades was helpful, but that it was less clear how this translated into a drumbeat of work for shipyards. Ian Waddell of the Confederation of Shipbuilding and Engineering Unions told us: My frustration …
Government response. The MOD recognises the importance of a regular drumbeat of orders and states the NSbS and 30-year pipeline aim to provide a sustainable demand signal. They also highlight workforce and programme details.
Scotland Office
49
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its December 2021 report “We’re going to need a bigger Navy”, the Defence Select Committee recommended that the Ministry of Defence provide Parliament with an annual shipbuilding plan, including the number of ships planned to enter and leave service each year in the next 30 years. We ask that …
Government response. The MOD acknowledges the committee's interest in the construction of Type 26 and will consider the request when providing updates to Parliament on key Defence programs.
Scotland Office
50
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard differing views over how decisions about how Scotland’s constitutional future might affect the shipbuilding pipeline. Professor Keith Hartley told us that “at the moment, the industry’s future depends on the Royal Navy. Without the Royal Navy, you would not have an industry.”86 He concluded that “I do not …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and highlights the 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
51
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline the importance to Scottish shipyards of maintaining a dependable ‘drumbeat’ of orders to allow them to invest and grow. The days of ‘feast and famine’ must not return. The creation of the National Shipbuilding Strategy suggests that the UK Government appreciates the importance of this point. …
Government response. The MOD fully recognises the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry. The NSbS is clear that we do not want a return to the “boom and bust” cycles of historic Naval demand, but to …
Scotland Office
52
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Government should provide greater clarity about the work that will fill the whole of the 30-year shipbuilding pipeline into the 2030s and 2040s. It is of course difficult to calculate precise military needs beyond 2050. However, the UK Government should give Scottish shipbuilders the confidence to continue to …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and aims to provide a more sustainable demand signal from Government as a whole through the 30-year cross-Government Shipbuilding Pipeline of over 150 new …
Scotland Office
53
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Recent developments have introduced uncertainty about some orders in the pipeline and whether it sets out a clear ‘drumbeat’ of orders needed to sustain Scottish shipyards. The Fleet Solid Support Ships and the National Flagship are two examples. There has been some media speculation about the Type 32s, although the …
Government response. The MOD recognizes the importance of a regular drumbeat of orders and highlights the 30-year cross-Government Shipbuilding Pipeline. Scotland plays a vital role in defence shipbuilding, and the Type 26 Batch 2 contract reaffirms the UK Government's commitment to shipbuilding …
Scotland Office
54
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
In its response to this report, and in its annual shipbuilding update to the Defence Select Committee, the UK Government should provide an update on the current status of the military shipbuilding pipeline for Scottish naval yards. In particular, it should confirm whether the MOD still intends to order the …
Government response. The government confirms the Royal Navy intends to procure more frigates and destroyers, states the T32 program is in the concept phase, and the suspension of the National Flagship has not created a gap in the pipeline as the MROS …
Scotland Office
55
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
During our inquiry the Prime Minister announced the decision that the second batch of Type 26 anti-submarine warfare frigates would be built by BAE in Glasgow.90 This means that, in addition to the three Type 26 ships already being built, five more vessels will be built on the Clyde. The …
Government response. The government acknowledges the importance of the Type 26 frigates, but reports that the Initial Operating Capability date of the first ship will be a year later than anticipated with additional costs, but work is underway to increase productivity and …
Scotland Office
56
Conclusion
Fourth Report - Defence in Scotland: mi…
Not Addressed
Prior to the announcement of the Batch 2 contract, the Defence Secretary informed the House in a Written Ministerial Statement that there would be a 12-month delay to the Batch 1 frigates becoming operational, from October 2027 to October 2028. The cost of the project would therefore grow by 4.2 …
Government response. The response acknowledges the delay in the Initial Operating Capability date of the first Type 26, HMS Glasgow, due to a number of complex reasons including global challenges, and that work is underway to increase productivity and improve on the …
Scotland Office
57
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
As noted in the section above, the Defence Select Committee has recommended that the Ministry of Defence provides an annual shipbuilding update to Parliament, and annual updates on particular programmes including the Type 26 frigate. No such update has yet been provided.97
Government response. The MOD acknowledges the committee's interest in the construction of Type 26 and will consider the request when providing updates to Parliament on key Defence programs.
Scotland Office
58
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The award of the contract to build five additional Type 26 frigates to BAE Systems is welcome news for Scottish shipbuilding, and importantly continues the shipbuilding ‘drumbeat’ into the medium-term. We note that, partly as a consequence of global challenges, the first batch of Type 26 vessels has faced delays …
Government response. The MOD welcomes the committee’s interest in the construction of Type 26 and will consider its request when providing updates to Parliament on key Defence programmes.
Scotland Office
59
Recommendation
Fourth Report - Defence in Scotland: mi…
Rejected
Given the ongoing global uncertainties we ask the UK Government to provide annual updates on the construction of the Type 26 vessels to both Houses of Parliament. We note that the Defence Select Committee has made a similar recommendation, but that the Ministry of Defence has not yet provided such …
Government response. The MOD does not disclose details of losing bids in commercial competitions and states that the FSS contract award resulted from a fair and open competition, supporting the objectives of the National Shipbuilding Strategy.
Scotland Office
60
Conclusion
Fourth Report - Defence in Scotland: mi…
Not Addressed
As discussed in Chapter 2, in November 2022 the MOD took the decision to select Team Resolute as the preferred bidder for the Fleet Solid Support ships contract. The MOD did not select a bid from Team UK, a consortium which included BAE Systems and Babcock.
Government response. The government defends its decision to award the Fleet Solid Support ship contract to Team Resolute, citing ongoing work in Scottish shipyards, investment in the UK, and adherence to the National Shipbuilding Strategy.
Scotland Office
61
Conclusion
Fourth Report - Defence in Scotland: mi…
Not Addressed
Sir Simon Lister of BAE told us that were the FSS vessels not to be built in Scotland it would create a gap in the continuity of orders for workers in the Scottish warship industry, but added that this gap could still be filled by other work: I see continuity …
Government response. The government defends its decision to award the Fleet Solid Support ship contract to Team Resolute, citing ongoing work in Scottish shipyards, investment in the UK, and adherence to the National Shipbuilding Strategy.
Scotland Office
62
Conclusion
Fourth Report - Defence in Scotland: mi…
Rejected
The decision to select Team Resolute bid as the preferred bidder for the upcoming order of Fleet Solid Support ships could create a potential gap in the workstream for the Scottish warship industry.
Government response. The MOD does not agree that the decision to award the Fleet Solid Support contract to Team Resolute creates a potential gap in the workstream for the Scottish warship industry, citing ongoing construction of Type 31 and Type 26 frigates.
Scotland Office
63
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response, the UK Government should set out how much capacity it expects to now be available in the Scottish warship industry in each of the years between 2025– 2032 as a result of the decision to select Team Resolute rather than Team UK as the preferred bidder for …
Government response. The government states that the Fleet Solid Support contract will still provide opportunities for Scotland, and Scottish shipyards will have ample opportunity to fill their order books over the next decade, the NSO recognises that key to delivering this Government’s …
Scotland Office
64
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In addition to its large shipyards, Scotland is home to a large number of Small and Medium-sized Enterprises (SMEs) which contribute to Scottish shipbuilding and to the wider defence sector. An SME is defined as a company with annual turnover of less than €50 million and fewer than 250 employees.101
Government response. The MOD published the SME Action Plan in 2022, which outlines the commitments being made to increasing and supporting opportunities for Small and Medium Enterprises (SMEs) and supports the Defence Suppliers Portal which offers SMEs access to view contracting opportunities.
Scotland Office
65
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
The UK defence sector, and the shipbuilding industry in particular, is dominated by a relatively small number of major companies. This is partly as a result of significant rationalisation and consolidation over the years, the highly specialised nature of its work and its limited customer base. In 2021/22, 42 per …
Government response. The MOD published the SME Action Plan in 2022, outlining commitments to increasing opportunities for SMEs and supporting the defence supply chain through initiatives such as the Defence Suppliers Portal and digital outreach.
Scotland Office
66
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
Only a small proportion of MOD spending with SMEs goes to Scottish SMEs, however. During our previous defence inquiry into Scotland’s military landscape, the MOD told us that Scottish SMEs accounted for just over £25 million of the MOD’s total spend. This is around 2.5 per cent of the approximate …
Government response. The MOD had a target of 25% of procurement spend going to SMEs by the end of 2022 and expects Scottish SMEs played a significant role in this. Figures for FY21/22 show £67M went directly to Scottish SMEs, representing 7% …
Scotland Office
67
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The MOD’s SME Action Plan acknowledges some of the challenges SMEs face. The Plan notes that “improving access to opportunities for SMEs also requires support from MOD as the end customer”109 and proposes a number of actions aimed at improving 101 Ministry of Defence, MOD trade, industry and contracts 2022, …
Government response. The MOD refers to its existing SME Action Plan and digital outreach to support SMEs, and mentions the Department for Transport's lead role in the Regional Maritime Cluster Development Programme.
Scotland Office
68
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
We heard that geographically targeted measures could be an effective way of involving SMEs in defence supply chains, such as fostering the growth of industry clusters. Hans Pung of RAND Europe, when asked what the UK Government could do to promote SME involvement, suggested that “the MOD working-with-industry group should …
Government response. The MOD outlines the SME Action Plan and initiatives to support SMEs, including the Defence Suppliers Portal, SME champions, and digital outreach. They also note the Department for Transport is the lead for the Regional Maritime Cluster Development Programme.
Scotland Office
69
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
We note that the MOD did not agree with the concerns expressed by Scottish SMEs during our Defence in Scotland: military landscape inquiry about the difficulties they experienced engaging with the Ministry. The steps the UK Government outlined in its response to our report are encouraging; however, we believe the …
Government response. The MOD published the SME Action Plan in 2022 which outlines the commitments being made to increasing and supporting opportunities for Small and Medium Enterprises (SMEs), including easier procurement models, recognition of the role of the MOD and its suppliers …
Scotland Office
70
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted in Part
The Ministry of Defence should, in line with its commitments in the National Shipbuilding Strategy and the UK Government’s commitments in Maritime 2050, work specifically to develop shipbuilding clusters in Scotland. In responding to this report, the UK Government should update us on what it has already done to support …
Government response. The MOD refers to its existing SME Action Plan and digital outreach to support SMEs, and mentions the Department for Transport's lead role in the Regional Maritime Cluster Development Programme.
Scotland Office
71
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted in Part
The Ministry of Defence should report back to us at the end of the financial year to confirm whether it met its target of spending 25 per cent of its procurement spend with SMEs. In addition, it should provide an update on what proportion of its spend with SMEs is …
Government response. The MOD is gathering figures for Financial Year 2021/22, and will publish on Gov.uk in as part of the annual data on central government SME spend; regional statistics have recently been published that confirm that £67M went directly to Scottish …
Scotland Office
72
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
Another tool the MOD uses to attempt to deliver benefits for local economies and communities is through using social value criteria to evaluate contracts. The MOD has a minimum 20 per cent weighting for social value. which will be applied to shipbuilding competitions.113 We heard that the three areas the …
Government response. The NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered. Under the Cabinet Office Social Value Model, the contracting authority is also mandated to assess the supplier’s performance.
Scotland Office
73
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard there was some uncertainty over how MOD assessed social value, and how delivery of social value would be measured. Industry representatives told the Defence Committee that social value was “probably the biggest factor in deciding who will win these contracts, and we don’t understand what the criteria are.”117 …
Government response. Both the NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered, with the contracting authority mandated to assess the supplier’s performance.
Scotland Office
74
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
We heard that including a social value component in shipbuilding contracts can help deliver benefits for the wider economy and in shipbuilding communities. However, there are challenges in measuring how effectively those commitments are being delivered on.
Government response. The NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered. Under the Cabinet Office Social Value Model, the contracting authority is also mandated to assess the supplier’s performance.
Scotland Office
75
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
The MOD should set out how it evaluates social value in competitions, how it measures the delivery of social value in the contracts it negotiates, and how it holds contractors accountable to ensure they meet those targets. It should also, as contracts progress, track the delivery of social value and …
Government response. The MOD uses the Cabinet Office Social Value Model as the framework, measures social value delivery using standard metrics, contract-specific metrics, and a Social Value Key Performance Indicator, and manages performance like any other contractual obligation with appropriate reporting and …
Scotland Office
76
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
Professor Keith Hartley of the University of York told us that there was a limited understanding of shipbuilding supply chains: The problem we face in the Scottish shipbuilding industry is that, although we know the major primes like BAE and have a limited amount of information on their supply chains …
Government response. The MOD operates initiatives to improve understanding of supply chains, including the Supply Chain Resilience Programme and a new Defence Condition (DEFCON) requiring contractors to provide supply chain maps.
Scotland Office
77
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
The Defence Secretary acknowledged that the MOD’s understanding of supply chains had been “one of our vulnerabilities” in the past, but said that since then “there has been a real drive across Government, and certainly in our department, to map and understand your supply chain right the way through the …
Government response. The MOD operates a series of initiatives to improve understanding of supply chains and address vulnerabilities, including a Supply Chain Resilience Programme and the introduction of a new Defence Condition (DEFCON) in contracts to map supply chains.
Scotland Office
78
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
We heard that historically the Ministry of Defence’s understanding of shipbuilding supply chains had been a vulnerability. The Secretary of State told us this had subsequently improved. The new Defence Supply Chain Strategy’s emphasis on building resilience in supply chains is welcome, and improving understanding of supply chains further will …
Government response. The MOD states that it already operates several initiatives to improve the understanding of supply chains, including a Supply Chain Resilience Programme and a new Defence Condition (DEFCON) in contracts.
Scotland Office
79
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
The Ministry of Defence should publish data on the composition of shipbuilding supply chains, to assist understanding of how the UK shipbuilding industry is structured. This should include regional breakdowns so that the extent of local supply chains and industry clusters can be better understood by Government and industry. 123 …
Government response. The MOD states it already has initiatives to improve understanding of supply chains, including a Supply Chain Resilience Programme and a new Defence Condition (DEFCON) requiring supply chain maps.
Scotland Office
80
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
A number of contributors to our inquiry highlighted that shipbuilding is an industry that requires a highly trained and specialised workforce.127 This is particularly true in the warship industry because warships are built to more demanding specifications: they must be built to withstand combat, and they incorporate a number of …
Government response. The UK Shipbuilding Skills Taskforce (UKSST) seeks to address this challenge by collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy, with a report of recommended actions expected in autumn 2023.
Scotland Office
81
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
As well as employing large numbers of skilled workers in its shipyards, Scotland also trains highly specialised workers at its higher and further education institutions, many of which go on to work for BAE and Babcock. Among the institutions which provide shipbuilding qualifications in Scotland are City of Glasgow College, …
Government response. The UK Shipbuilding Skills Taskforce (UKSST) seeks to address this challenge by collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy, with a report of recommended actions expected in autumn 2023.
Scotland Office
82
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
The Confederation of Shipbuilding and Engineering Unions said workforce recruitment, skills and retention were “the biggest challenge for the industry and the enterprise collectively.”129 City of Glasgow College, one of the biggest trainers of Scottish shipbuilders, agreed that “Scottish shipbuilding cannot succeed without addressing chronic shortages in labour and skills.”130 …
Government response. The UK Shipbuilding Skills Taskforce (UKSST) is collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy and intends to publish a report of recommended actions in autumn 2023.
Scotland Office
83
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
A further challenge relates to retaining existing staff. Witnesses told us that uncertainty about future workloads could lead to staff leaving their roles. John Howie of Babcock said: “There are inherent inefficiencies in ordering a batch of ships and then not ordering anything for four, five or six years. It …
Government response. The UK Shipbuilding Skills Taskforce (UKSST) seeks to address the challenge of retaining existing staff by developing and implementing a future-focussed skills strategy. The UKSST includes representatives from Skills Development Scotland and Scottish industry and intends to publish a report …
Scotland Office
84
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
Witnesses emphasised the importance of a reliable drumbeat of work to help them recruit and retain staff. City of Glasgow College called for “a clearer demand signal to trigger both the public and private sector investment needed to expand the shipbuilding workforce.”138 Hans Pung of RAND Europe agreed that “the …
Government response. The government is addressing this challenge through the UK Shipbuilding Skills Taskforce (UKSST), which aims to develop and implement a future-focused skills strategy and publish a report of recommended actions in autumn 2023.
Scotland Office
85
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
Another challenge identified by contributors related to retraining and lifelong learning for the existing workforce. City of Glasgow College told us “a skilled workforce which is regularly upskilled and reskilled across a lifetime is vital to sustaining a world-class shipbuilding industry in Scotland and the UK.” The College drew attention, …
Government response. The UK Shipbuilding Skills Taskforce (UKSST) is collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy and intends to publish a report of recommended actions in autumn 2023.
Scotland Office
86
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Some contributors to our inquiry argued that addressing skills challenges was made more difficult by a lack of data on the skills composition of the UK workforce. Professor Keith Hartley told us that while the UK has “decent data on both direct and indirect employment in the UK’s defence industries…when …
Government response. The government states that the UK Shipbuilding Skills Taskforce (UKSST) is collaborating to develop and implement a skills strategy and will publish a report of recommended actions in autumn 2023.
Scotland Office
87
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
We heard evidence that the MOD and the Scottish Government could both have a better understanding of the skills profile of the shipbuilding workforce. This makes workforce planning for a highly advanced sector like military shipbuilding more challenging.
Government response. The government is addressing this challenge through the UK Shipbuilding Skills Taskforce (UKSST), which aims to develop and implement a future-focused skills strategy and publish a report of recommended actions in autumn 2023.
Scotland Office
88
Recommendation
Fourth Report - Defence in Scotland: mi…
Accepted
Building on the work of the UK Shipbuilding Skills Taskforce, the Ministry of Defence should commission regular research to develop and keep up to date its understanding of the current and future skills profile of the shipbuilding workforce, and the skills needed by the shipbuilding sector. Given education and skills …
Government response. The UK Shipbuilding Skills Taskforce (UKSST) is collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy and intends to publish a report of recommended actions in autumn 2023.
Scotland Office
89
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The National Shipbuilding Strategy Refresh recognised the importance of skills as an issue, and in response announced the establishment of a UK Shipbuilding Skills Taskforce (UKSST). The Taskforce is run by the Department for Education, working with the National Shipbuilding Office.146 The Taskforce’s role is to “build a picture of …
Government response. The government states that the scope of the UKSST aligns with the NSbS Refresh and will consider the skills requirements for the entirety of the shipbuilding enterprise, as well as the impact of technological innovation.
Scotland Office
90
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The National Shipbuilding Strategy Refresh implicitly recognises that the design and building of warships is significantly more complex than for many other vessels, and includes warships as a discrete category when listing types of shipbuilding undertaken in the UK.149 It does not acknowledge as explicitly that the warship industry demands …
Government response. The government states the UKSST will consider the skills requirements for the entirety of the shipbuilding enterprise, including the warship sector.
Scotland Office
91
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the UKSST was widely welcomed by contributors to our inquiry.152 John Howie of Babcock described it as “a key example of…the longer term planning that is needed to ensure that we generate the next generation of the workforce, and that we 144 Professor John Louth (DIS0028) 145 …
Government response. The NSO agrees that workforce planning by the UKSST is essential, and that the 30 Year Cross-Government shipbuilding pipeline provides transparency to plan and manage its workforce, and encourages investment in skills; the Chair of the UKSST would be pleased …
Scotland Office
92
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
A complicating factor in the work of the Taskforce is the devolved nature of skills policy in parts of the UK, including in Scotland. Kevin Craven of ADS Group said “the devolved nature of the work involved means that co-ordination and collaboration, working together on these things, is desperately important.”155 …
Government response. The UKSST, NSO and DfE welcome this signal from the Committee to work collaboratively to meet the skills needs of the sector through the existing education system. The UKSST recognises skills is a devolved issue and is committed to ensuring …
Scotland Office
93
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the UK Shipbuilding Skills Taskforce shows a welcome recognition of the importance of long-term workforce planning in shipbuilding. This kind of planning is essential if Scottish yards are to have the highly-skilled workers they need to thrive in the future. We look forward to the publication of …
Government response. The government agrees that workforce planning by the UKSST is essential and that the 30-year shipbuilding pipeline will provide industry with transparency to plan and manage its workforce and encourage investment in skills. The Chair of the UKSST would be …
Scotland Office
94
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We invite the UK Shipbuilding Taskforce, together with UK Government Ministers, to give oral evidence to the Committee when the UKSST’s report is published in autumn 2023, so that its findings can be discussed further and priorities identified to ensure Scottish shipyards have the skills they need.
Government response. The government agrees the workforce planning is essential and the Chair of the UKSST would be pleased to meet with the Committee following publication of its report.
Scotland Office
95
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline that the additional complexity of building warships demands highly specialised skills and knowledge, and that these will need to be updated and refreshed as warship design and manufacture evolves.
Government response. The government states the UKSST will consider the skills requirements for the entirety of the shipbuilding enterprise, including the warship sector.
Scotland Office
96
Conclusion
Fourth Report - Defence in Scotland: mi…
Accepted
The UK Shipbuilding Skills Taskforce’s report should identify the skills demands of the warship industry specifically, as well as steps that can be taken to meet those needs.
Government response. The scope of the UKSST aligns with the NSbS Refresh and it will therefore consider the skills requirements and know-how for the entirety of the shipbuilding enterprise, including the warship, commercial, workboat and leisure market sectors, both in the short …
Scotland Office
97
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Skills policies will best support the shipbuilding industry if the UK and Scottish Governments’ approaches complement each other. For this to happen, education policymakers in Scotland will need to be able to receive clear signals about the skills needs of the defence sector, and will need routes for working together …
Government response. The UKSST, NSO and DfE welcome the signal to work collaboratively and state the UKSST is committed to ensuring its recommendations work for all UK nations, and the NSO will provide transparency on future orders via the 30 Year Cross-Government …
Scotland Office
98
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Shipbuilding Skills Taskforce should have a specific objective to encourage coordination between different jurisdictions in the UK, so that a common effort can be made towards supporting shipbuilding in Scotland and other parts of the UK. Defence in Scotland: military shipbuilding 35
Government response. The UKSST, NSO and DfE welcome the signal to work collaboratively and are committed to ensuring its recommendations work for all UK nations, with the NSO providing transparency on future orders and a stable baseline of work through the 30 …
Scotland Office
1
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK Government is clear that Scotland’s geography, and the capabilities located there, is critical to meeting the UK and NATO’s defence and security objectives in the North Atlantic and the High North.
Government response. The government welcomed the report, agreeing that Scotland's geography and defence assets are critical to UK and NATO objectives, and reiterated its existing commitment to using these capabilities as part of a UK-wide defence strategy.
Scotland Office
2
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
The UK Government’s policy document, The UK’s Defence Contribution in the High North, adopts appropriate strategic priorities for the region. At the same time, the geopolitics of the North Atlantic and the High North are evolving and the UK will need to be prepared to adapt its approach and commit …
Government response. The government recognized the need to adapt its approach to new security threats in the High North and committed to improving its understanding of the region and its evolving geopolitics, affirming a UK-wide strategy for any changes.
Scotland Office
3
Conclusion
Seventh Report - Defence in Scotland: t…
Rejected
The Ministry of Defence should commit to updating its Arctic defence strategy every five years, to reflect the strategic acceleration in the region and to bring it into line with the FCDO’s Arctic Strategy for the whole of Government, which is updated every five years. We hope that, before then, …
Government response. The government rejected the recommendation to update its Arctic defence strategy every five years, stating its 2022 strategy is designed for 10 years and that reviews are conducted regularly, but not on a fixed five-year cycle. It noted the Defence …
Scotland Office
4
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK and NATO face new challenges in the North Atlantic in the High North. In particular, the Arctic faces new environmental and political challenges which must be navigated carefully if the region is to remain one of high co-operation and low tension.
Government response. The government states that its 10-year strategy already commits to improving understanding of the region, monitoring challenges, and regularly reviewing priorities, reiterating existing Integrated Review analysis. It also describes ongoing monitoring of subsea infrastructure vulnerability.
Scotland Office
5
Recommendation
Seventh Report - Defence in Scotland: t…
Accepted
The UK Government should continue to be proactive in considering how the UK’s defence and security priorities in the North Atlantic and the High North may change in the future, in response to the changing geopolitical context and the effects of climate change. In its response to this report, the …
Government response. The government states that its 10-year strategy commits to improving understanding of the region and regularly reviewing defence and security priorities. It outlines its current assessment of challenges, including Russian belligerence, resource competition, and subsea infrastructure vulnerability, reiterating points from …
Scotland Office
6
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
Climate change is likely to lead to the opening of new sea routes due to the retreat of Arctic ice. While the overriding priority should be to minimise the effects of climate change, the UK Government must also be prepared for the likelihood that navigation via these routes will gradually …
Government response. The government response is truncated and contains no substantive content regarding the recommendation.
Scotland Office
7
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK Government should consider how the effects of climate change might create new defence and security responsibilities in the future, in particular for naval policing and search and rescue. The UK should also seek to promote and uphold the principles of the UN Convention on the Law of the …
Government response. The government states it is monitoring climate change implications for the region. It clarifies that search and rescue is primarily an Arctic State responsibility, though the UK has North Atlantic duties and cooperates. It affirms its commitment to upholding UNCLOS …
Scotland Office
8
Conclusion
Seventh Report - Defence in Scotland: t…
Deferred
Events like the sabotage of the Nord Stream pipeline have shown that Critical National Infrastructure that is based offshore or beneath the sea can be vulnerable to interference. This is a concern in the North Atlantic, where transatlantic cables are critical lines of communication, as well as in the UK’s …
Government response. The Ministry of Defence states it cannot comment on the repair of transatlantic cables and indicates that wider government efforts, coordinated by the Cabinet Office, involve several departments to assure UK interests, but provides no further detail on repair plans.
Scotland Office
9
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK Government should produce and publish a strategy for protecting offshore infrastructure. This should include a plan for how attempts by malign actors to interfere with Critical National Infrastructure can be deterred or prevented, and how damaged infrastructure can be repaired quickly by their commercial owners.
Government response. The government states that protecting subsea infrastructure is already a core part of its National Strategy for Maritime Security. It describes ongoing efforts, including inter-departmental cooperation, monitoring, naval patrols, and working with allies to deter threats and ensure resilience, stating …
Scotland Office
10
Recommendation
Seventh Report - Defence in Scotland: t…
Accepted
The UK Government should set out the timeline for the refitted Multi-Role Ocean Surveillance Ship, RFA Proteus, and the future purpose-built Multi-Role Ocean Surveillance Ship to come into service. It should state whether it is still the intention, as set out in the 2021 Integrated Review, for the purpose-built MROSS …
Government response. The government committed RFA PROTEUS to reach Initial Operating Capability by mid-2024 and Full Operating Capability by the end of 2024. For the future Multi-Role Ocean Surveillance Ship-2, the program is in the pre-concept phase with no decisions yet made …
Scotland Office
11
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK’s role and responsibilities in NATO may evolve in response to changing geopolitics, including increasing tensions with Russia and the consequent accession of Finland and (as seems likely) Sweden to the alliance. This may entail new or changed responsibilities in the North Atlantic and the High North. The same …
Government response. The government states it will continue to monitor developments and regularly engage with NATO, JEF, and the Northern Group, acknowledging that its role and responsibilities may evolve. It agrees with the importance of NATO in the High North and actively …
Scotland Office
12
Recommendation
Seventh Report - Defence in Scotland: t…
Accepted
We recommend that the UK Government convene discussions with its NATO and Joint Expeditionary Force allies about how these alliances should respond to new challenges in the North Atlantic and the High North, and be prepared to take an expanded role in the region if required.
Government response. The government states it routinely convenes discussions with NATO and JEF allies at all levels, with High North and North Atlantic security being a priority for these engagements. It commits to continue monitoring developments and engaging partners to assess new …
Scotland Office
13
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK’s relationships with its Arctic allies are essential to meeting common security objectives in the North Atlantic and the High North. These relationships will become more important should the challenges in the region become more prominent.
Government response. The government states its High North Strategy commits to working with regional allies through various forums and regularly attends Arctic meetings. While rejecting the appointment of a political Arctic Ambassador, it is recruiting a new UK Senior Arctic lead at …
Scotland Office
14
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK should continue considering how it can best contribute to diplomacy and collaborative problem-solving in the North Atlantic and the High North. Actions it could take include stepping up its participation in existing fora where appropriate and considering the appointment of a dedicated ambassador or envoy to the Arctic …
Government response. The government will continue to send delegations to Arctic forums and is recruiting a new UK Senior Arctic lead at ambassadorial rank to strengthen engagement. It does not believe appointing a political Arctic Ambassador is the right approach for the …
Scotland Office
15
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
Cooperation around the P-8A Poseidon Maritime Patrol Aircraft, which has enabled Norwegian aircraft to be maintained at RAF Lossiemouth, and RAF aircraft to be supported in Norway, has been a success, and provides a model for similar defence cooperation in the future.
Government response. The government details existing and expanding defence cooperation in the High North, including cold weather training, P8 deployments, and the establishment of a dedicated Littoral Response Group (North), aligning with the successful P-8A cooperation model.
Scotland Office
16
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
Alongside its efforts to develop defence and security cooperation in the North Atlantic and the High North through multilateral institutions, the UK Government should pursue further opportunities for direct bilateral cooperation with Arctic allies, including new NATO members Finland and Sweden. (Paragraph 63) Scotland’s contribution to defence in the North …
Government response. The government is expanding cold weather training and defence cooperation with Arctic partners, including Finland and Sweden, and is committed to bilateral collaboration, citing a strong track record of joint exercises and aligned activities.
Scotland Office
17
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
Scotland’s geography means it will continue to play an important role in meeting UK and NATO defence and security objectives in the North Atlantic and the High North. This means that, should the situation in the region change, Scotland could become home to a larger defence presence. We heard that …
Government response. The government acknowledges Scotland's critical role in UK defence and states it regularly reviews its defence posture across the UK in response to regional changes, without committing to a specific increase in presence.
Scotland Office
18
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK’s ability to project assets into the North Atlantic and High North if required must be maintained, as this is key to both the UK and NATO’s defence strategy. Currently this capability is based primarily at HMNB Clyde and RAF Lossiemouth. NATO views the continued presence of a nuclear …
Government response. The government is committed to maintaining its ability to project assets, investing in new Anti-Submarine Warfare frigates, spending over £3 billion on Scottish defence sites including £1.6 billion on HMNB Clyde, and £470 million on RAF Lossiemouth infrastructure.
Scotland Office
19
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The committee heard evidence during this inquiry of the need to maintain HM Naval Base Clyde as home to the Royal Navy’s nuclear-armed Vanguard 15 class submarines that form the UK’s Continuous At-Sea Deterrent, as well as the Astute Class of attack submarines. Whilst not all Members of the Committee …
Government response. The government welcomes the committee's recognition of HM Naval Base Clyde's strategic importance, confirming it will remain the single operational home for Vanguard and Astute Class submarines, and that investment in it as the UK’s Submarine Centre of Specialisation continues.
Scotland Office
20
Recommendation
Seventh Report - Defence in Scotland: t…
Accepted
In its response to this report, the UK Government should set out what scope it considers for the defence presence in Scotland to be sufficiently scaled up to respond to a scenario where the UK has greater obligations in the North Atlantic and the High North. In particular, its response …
Government response. The government states that UK Armed Forces would respond to increased obligations, with the RAF able to rapidly increase assets by revising operational plans for agility. The Army would bolster RAF resilience and could rapidly increase capacity at its Scottish …
Scotland Office
21
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
RAF assets based in Scotland contribute to defence in the North Atlantic and the High North in a number of important ways, including surveillance, anti-submarine warfare and threat response by way of the Quick Reaction Alert jets stationed at RAF Lossiemouth. Several witnesses expressed doubts as to whether the UK …
Government response. The government asserts that its force structure is regularly tested and that capability is not solely measured by aircraft numbers, but by the totality of platforms, systems, and coalition operations. It highlights the 2021 Defence Command Paper and the P-8 …
Scotland Office
22
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
In its response to this report, the UK Government should address the concerns raised in evidence both to this inquiry and to the Defence Committee over whether the number of P-8A, E7 and Typhoon aircraft is sufficient to provide the coverage required in the North Atlantic and the High North, …
Government response. The government addresses concerns by stating that its force structure is regularly tested and capability is assessed by the totality of platforms and systems, including NATO cooperation, not just aircraft numbers. It refers to the 2021 Defence Command Paper and …
Scotland Office
23
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK needs a clear sense of what kind of specialised cold weather capability it will need to meet its objectives in the High North. We heard that the UK currently has limited capability for operating in extremely cold environments. Where there are gaps, and these cannot be filled by …
Government response. The government has committed to developing sustainable cold weather capability, will examine options to bolster its cold weather equipment and infrastructure, and plans to conduct regular cold weather training with partners. Its refreshed Cold Weather Warfare doctrine will be tested …
Scotland Office
24
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
The UK Government must review, and report to the House, the extent to which, now and in the future, what capability is needed to operate in extremely cold environments at the scale required to meet evolving defence and security objectives in the High North. The review should consider what equipment …
Government response. The government states it is already developing, testing, and analysing cold weather capabilities through existing programmes and exercises. Its Cold Weather Warfare doctrine has been refreshed and will be tested in Q1 2024 and ratified in Q2 2024.
Scotland Office
25
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
We heard that space-based capabilities provide numerous advantages for surveillance at high latitudes. Scotland, with its burgeoning space sector and a northerly location that is suitable for launch into polar orbits, is well-placed to take advantage of this opportunity. We were encouraged to hear that the Ministry of Defence and …
Government response. The government response is a header and contains no substantive information.
Scotland Office
26
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
We heard that drones can provide an advantage in cold weather environments, but that not all drones were suited to operating in the extreme cold and that specialised systems might be needed to operate in the High North.
Government response. The government states a Defence Uncrewed Systems (UxS) Strategy is in the final stages of approval, which will ensure UK UxSs are developed to meet challenges across all operating environments, including extreme cold.
Scotland Office
27
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
As part of the review into cold-weather capability recommended above, the UK Government should consider what contribution a) drones and b) space technology should make to meeting defence and security objectives in the North Atlantic and the High North. Its conclusions should be published as part of that report, before …
Government response. The government details its National Space Strategy, £50 million funding for UK space markets including Scottish launches, and the upcoming Defence Uncrewed Systems (UxS) Strategy which aims to ensure UxS meet challenges in all operating environments.
Scotland Office
28
Conclusion
Seventh Report - Defence in Scotland: t…
Accepted
When developing and deploying new space-based technologies in support of defence objectives in the High North, the UK Government should make the most of Scotland’s innovative and rapidly growing space sector, and its geographical advantages as a base for launching satellites into polar orbits. The Ministry of Defence and Department …
Government response. The government details its National Space Strategy, DSIT's work with Scottish stakeholders, and £50 million funding (including £31.5 million for vertical launch from Scotland) to develop the UK space sector and harness Scotland's potential.
Scotland Office