Recommendations & Conclusions
144 items
1
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
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 …
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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 a greater proportion of the Army, with an increase in the number of battalions, as outlined in the 2021 Future Soldier review. We also welcome the MOD’s significant investment in Scotland, in particular in Argyll & Bute and Moray, and the economic benefits this brings to local communities.
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Government response AI summary
MOD acknowledges the Committee's highlighting the positive role that the MOD and the defence sector play in Scotland and reaffirms its commitment to the future of Defence in Scotland and its continued vital role in maintaining UK security.
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Scotland Office
2
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
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.
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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.
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Government response AI summary
The MOD is committed to the future of Defence in Scotland and appreciates the Committee for highlighting its role in maintaining UK security and strengthening international alliances.
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Scotland Office
3
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
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 …
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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 future. (Paragraph 21) Defence industry in Scotland
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Government response AI summary
MOD acknowledges the Committee's highlighting the positive role that the MOD and the defence sector play in Scotland and reaffirms its commitment to the future of Defence in Scotland and its continued vital role in maintaining UK security.
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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 …
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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 UK SMEs goes to Scottish businesses. While this figure is higher than the MOD’s spending with SMEs in the North West of England, Wales and Northern Ireland, it is far lower than both the UK average and Scotland’s population share of the UK. Scottish SMEs have the skills and ambition to match any other part of the UK yet are losing out. While the MOD’s SME Action Plan is timely and relevant, it is unlikely to tackle engrained hesitancy within the defence sector towards working with Scottish SMEs.
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Government response AI summary
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.
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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 …
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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 to at least 8% by the end of the MOD SME Action Plan implementation period.
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Government response AI summary
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 end of 2022.
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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 …
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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 further in our inquiry into military shipbuilding. (Paragraph 39) 36 Defence in Scotland: military landscape
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Government response AI summary
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.
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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 …
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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 likelihood of any of its warships being procured or built overseas in the next 30 years. (Paragraph 40) MOD base closures and base expansion
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Government response AI summary
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.
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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.
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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.
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Government response AI summary
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.
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Scotland Office
9
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
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.
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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.
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Government response AI summary
The MOD is committed to working with Scottish local authorities including through the use of formal partnership arrangements where appropriate.
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Scotland Office
10
Recommendation
First Report - Defence in Scotland: mil…
Accepted
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 …
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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 caused by MOD basing decisions. These should be produced within a suitable timeframe to inform and enable appropriate action ahead of base closures or major expansions. (Paragraph 62) MOD collaboration with the Scottish Government
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Government response AI summary
The MOD will continue to work with local authorities to determine the impact of basing decisions on communities and how we release surplus military sites for meaningful future use. MOD already employs dedicated locally based estate leads for all of our sites in Scotland to …
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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 AI summary
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.
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Scotland Office
12
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
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 …
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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 in devolved policy areas. Nevertheless, we recognise that engagement with local authorities and health boards is also important due to their operational role.
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Government response AI summary
The MOD acknowledges the need for constructive engagement with the Scottish Government and will seek to prioritise the development of improved knowledge and understanding across Defence where MOD business both impacts, and is impacted by, areas of devolved competence.
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Scotland Office
13
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
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.
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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.
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Government response AI summary
The MOD says that basing decisions are based entirely on military requirement, but it is recognised that the impact of site closures will be felt beyond the Defence community and notification of decisions at the earliest possible opportunity is helpful.
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Scotland Office
14
Recommendation
First Report - Defence in Scotland: mil…
Deferred
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 …
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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 would benefit military communities who rely on locally provided services, and Scottish communities nearby to MOD bases who share the same local services. (Paragraph 76) Movement of personnel in and out of Scotland
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Government response AI summary
The MOD will share the recommendation regarding funding of local authorities and health boards with their Scottish Government counterparts, as it is outside the locus of the MOD.
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Scotland Office
15
Recommendation
First Report - Defence in Scotland: mil…
Accepted
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.
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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.
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Government response AI summary
The MOD commits to working with the Scottish Government and Service Families Federations to refresh the ‘Welcome to Scotland’ publication annually and signpost it to personnel.
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Scotland Office
16
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
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 …
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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 military families moving to Scotland easier. Particular focus should be given to the provision of clear information in relation to the implications of the differing child education, healthcare, tax and professional qualifications systems between UK nations. As part of these reviews, the MOD should ensure that ‘best practice’ is shared between Services and the MOD and Scottish Government should ensure that details of the three service Family Federations and SSAFA are proactively and routinely signposted.
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Government response AI summary
MOD will continue to work with SG and single Service Families Federations to refresh the ‘Welcome to Scotland’ publication annually and signpost it to personnel, including through HIVE information services and will also continue involvement in the SG chaired Scottish Armed Forces Education Strategy Group …
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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 …
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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 in their employment by virtue of their association with the Armed Forces.
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Government response AI summary
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 that spouses may use the …
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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
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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
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Government response AI summary
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.
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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.
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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.
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Government response AI summary
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.
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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 …
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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 how the UK Government assesses the benefits that procuring military ships domestically delivers for the wider economy. It is important these benefits are properly understood so they can inform future decisions about where naval ships are to be built.
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Government response AI summary
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.
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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 …
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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 and HM Treasury. The response should also set out what conclusions were drawn from this work.
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Government response AI summary
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 understand the economic footprint of …
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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 …
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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 supported more jobs in the UK, and Scotland in particular. The UK Government’s decision appears to prioritise short-term savings over longer term economic gains for Scotland and the rest of the UK. Witnesses told us that the FSS decision would be a test of the new National Shipbuilding Strategy.
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Government response AI summary
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 National Shipbuilding Strategy.
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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.
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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.
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Government response AI summary
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 BMT have sites in Northern …
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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.
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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.
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Government response AI summary
The MOD declined to provide further details on why Team UK's bid was non-compliant, citing commercial interests of the bidders.
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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 …
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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 the decision to select a preferred bidder was made. (Paragraph 27) 4 Defence in Scotland: military shipbuilding
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Government response AI summary
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.
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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 …
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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 in the same way as demand from the Royal Navy.
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Government response AI summary
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.
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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 …
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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 at present.
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Government response AI summary
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 exports have in growing the …
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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.
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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.
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Government response AI summary
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 in support of the delivery …
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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 …
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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 UK Government should specifically consider the question of, and publish conclusions on, whether the National Shipbuilding Office has sufficient powers to achieve its aims and whether it is able to gather adequate data on the military shipbuilding industry.
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Government response AI summary
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 publicly where possible.
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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 AI summary
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.
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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
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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
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Government response AI summary
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 Edinburgh.
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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. …
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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. However, there remains some uncertainty about the pipeline in the 2030s and 2040s, such as the basis on which the Type 45 destroyers will be replaced. The Scottish shipbuilding industry should not be given cause to doubt that it will have a consistent order book in the future, so long as it continues to deliver on its commitments to its Government customers.
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Government response AI summary
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.
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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 …
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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 invest in the future with a clear commitment that it will strategically use its contracts to sustain the national capacity to design and build warships in Scotland, so long as industry continues to Defence in Scotland: military shipbuilding 5 deliver on its own contractual commitments.
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Government response AI summary
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.
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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 …
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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 UK Government have stated: “The strategic and long-term investments continue to be on track and will increase the capability and size of the fleet.”
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Government response AI summary
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 Spending Review.
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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 …
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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 Type 32 frigates as set out in the National Shipbuilding Strategy Refresh, and whether the timeline for the Type 32s has changed as a result of concerns about the affordability of the initial plans. The MOD should also set out whether the cancellation of the National Flagship has created a gap in the pipeline, and if so how this gap will be filled.
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Government response AI summary
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.
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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 …
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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 and increased costs.
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Government response AI summary
The government acknowledged the delays and increased costs of the first batch of Type 26 vessels due to global challenges.
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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 …
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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 an update.
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Government response AI summary
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.
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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 AI summary
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 at risk.
Read full response →
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 …
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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 the latest order of Fleet Solid Support ships. It should also set out what work could potentially make use of that capacity in the absence of the FSS. (Paragraph 63) Scottish SMEs and shipbuilding supply chains
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Government response AI summary
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 recognises that key to delivering …
Read full response →
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 …
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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 is missing an opportunity by not doing more to encourage innovation and collaboration by supporting SME clusters around Scotland’s shipyards. (Paragraph 69) 6 Defence in Scotland: military shipbuilding
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Government response AI summary
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 Development Programme.
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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 …
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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 the growth of the Scottish Maritime Cluster as was promised in the Maritime 2050 strategy in 2019. To support the growth of these clusters the MOD needs to address barriers to Scottish SMEs working with the Ministry.
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Government response AI summary
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.
Read full response →
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 …
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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 spent with Scottish SMEs.
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Government response AI summary
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 statistics for FY21/22 have been …
Read full response →
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.
Read more
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.
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Government response AI summary
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.
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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 …
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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 challenge contractors where targets are in danger of being missed. We encourage the Scottish Government to provide any assistance it can in measuring and monitoring social value of these contracts to local authority areas and economies.
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Government response AI summary
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 with its largest suppliers.
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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 …
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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 help to achieve this aim.
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Government response AI summary
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.
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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.
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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.
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Government response AI summary
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.
Read full response →
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.
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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.
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Government response AI summary
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 Scottish industry.
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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 …
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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 are devolved matters, we equally encourage the Scottish Government to develop its understanding of the skills profile required in the shipbuilding sector. This will help both Governments, education sectors and the shipbuilding industry to anticipate and respond to the needs of Scottish yards. (Paragraph 88) Defence in Scotland: military shipbuilding 7 Skills in Scottish shipbuilding
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Government response AI summary
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.
Read full response →
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 …
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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 the Taskforce’s report in September 2023.
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Government response AI summary
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 Economic Transformation (NSET).
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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.
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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.
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Government response AI summary
The Chair of the UKSST, with support from Government, would be pleased to meet with the Committee following publication of its report.
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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 AI summary
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 technological innovation on these sectors.
Read full response →
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 AI summary
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 technological innovation on these sectors.
Read full response →
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 …
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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 with the UK Government and other devolved administrations to respond to those needs.
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Government response AI summary
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 baseline of work through the …
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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
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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
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Government response AI summary
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.
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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.
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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.
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Government response AI summary
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.
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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, …
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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 UK Government should specifically consider the question of, and publish conclusions on, whether the National Shipbuilding 57 Q139 58 Q129; Q142 59 Q140 60 Q218 61 Q139 62 Q217 (see footnote 2) 63 Q217 18 Defence in Scotland: military shipbuilding Office has sufficient powers to achieve its aims and whether it is able to gather adequate data on the military shipbuilding industry.
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Government response AI summary
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 believe the NSO is suitably …
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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 AI summary
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 involved in delivery of the …
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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’
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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’
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Government response AI summary
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.
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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 …
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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 which required significant forward planning. We were told that in the past shipbuilding in the UK had suffered from a pattern of ‘feast and famine’, with a sporadic and unpredictable pattern of orders, which had discouraged investment in the industry, increased costs and programme risk, and made shipbuilding a less attractive career option.64 The UK Defence Journal reported that the situation had improved in recent years.65 However, the General Secretary of the Confederation of Shipbuilding and Engineering Unions, Ian Waddell, warned that “we could be looking at the same issue again if we do not get the distribution of work correct and the right drumbeat of contracts going through the yards.”66
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Government response AI summary
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 updating the shipbuilding pipeline at …
Read full response →
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 …
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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 a reasonable level of return on their investment, they will put the investment in.67 Richard Powell of the Society of Maritime Industries described how this could lead to a more efficient shipbuilding sector: Achieving true efficiency is not about competition in the procurement process. It is about having the long-term surety that the industry can make the investments necessary to drive down the costs of production. If you are only getting short-term orders and you do not know where the next order will come from, it is very hard to make the business case to get the productivity increase.68 We heard that a consistent drumbeat also made it easier to recruit and retain skilled staff (See Chapter 5).69 The current pipeline
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Government response AI summary
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.
Read full response →
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 …
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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 20 Defence in Scotland: military shipbuilding Table 1: Projected ‘pipeline’ of work for Scottish shipyards Name Class Location Launch Period HMS Glasgow Type 26 (Batch 1) Glasgow 2020s HMS Cardiff Type 26 (Batch 1) Glasgow 2020s HMS Belfast Type 26 (Batch 1) Glasgow 2020s HMS Birmingham Type 26 (Batch 2) Glasgow 2020s HMS Sheffield Type 26 (Batch 2) Glasgow 2020s HMS Newcastle Type 26 (Batch 2) Glasgow 2020s HMS Edinburgh Type 26 (Batch 2) Glasgow 2030s HMS London Type 26 (Batch 2) Glasgow 2030s HMS Venturer Type 31 Rosyth 2020s HMS Bulldog Type 31 Rosyth 2020s HMS Campbeltown Type 31 Rosyth 2020s HMS Formidable Type 31 Rosyth 2020s HMS Active Type 31 Rosyth 2020s UNKNOWN* Ukrainian Warship Rosyth UNCERTAIN Unknown Type 32 Rosyth 2020s Unknown Type 32 Rosyth 2030s Unknown Type 32 Rosyth 2030s Unknown Type 32 Rosyth 2030s Unknown Type 32 Rosyth 2030s Unknown Type 83** Glasgow 2030s Unknown Type 83 Glasgow 2030s Unknown Type 83 Glasgow 2030s Unknown Type 83 Glasgow 2030s Unknown Type 83 Glasgow 2030s Unknown Type 83 Glasgow 2040s *The status of the plan to order a warship for Ukraine is unknown due to the invasion of the country **Additionally, the listing of six Type 83 Destroyers presumes the Type 45 Destroyers are replaced on a one for one basis. Source: UK Defence Journal (DIS0022) The above list does not cover the whole of the promised 30-year pipeline. If, as the UK Defence Journal notes, fewer than six Type 83 destroyers are ordered the pipeline may not even extend into the 2040s. Professor Trevor Taylor of the Royal United Services Institute, the specialist adviser to this inquiry, noted in his written evidence that Scottish yards which provide the core of military shipbu
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Government response AI summary
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 provide a more sustainable demand …
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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 …
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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 Scotland: military shipbuilding 21 UK Government would release a 30-year pipeline of all Government vessel procurements.71 However, the Government subsequently clarified, in response to concerns raised by the Defence Select Committee about the surety of the pipeline, that this did not mean work would be guaranteed throughout the 30-year period: The NSbS refresh will not provide a guaranteed pipeline of work for UK yards. However, through the 30 Year Cross-Government Shipbuilding Pipeline, there is ample opportunity to create a baseline of volume to encourage industry investment in facilities, infrastructure, innovation and skills. The NSO will seek to maximise the opportunity for UK industry in this pipeline, within the limits of procurement law and international obligations. Whilst noting the Committee’s concerns regarding assurance of this pipeline, we consider it will create sufficient opportunities for UK yards to thrive.72
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Government response AI summary
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.
Read full response →
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 …
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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 will oversee this pipeline, working with Departments to manage this against UK industrial capacity. As the pipeline spans a 30 year period, it is subject to change and will be agreed through future Spending Reviews. The NSO will update this pipeline at each multi-year Spending Review, however we will be reliant upon industry delivering programmes to cost and time so that we can minimise changes to the pipeline and provide greater certainty.74 Some changes to the pipeline have already been seen, such as the decision to cancel the National Flagship, and consequent acceleration of the Multi-Role Ocean Surveillance Ship (MROSS) procurement, in November 2022.75 In January it was reported that the UK Government had purchased a civilian vessel, the MV Topaz Tangaroa, for conversion into the first MROSS at Cammell Laird on Merseyside. This means the first MROSS will not form part of the shipbuilding pipeline for Scotland. The MOD plans to order a second MROSS, to be built from scratch; the site of this work is currently not known.76
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Government response AI summary
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.
Read full response →
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 …
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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 Type 32 frigates and Multi-Role Support Ships because of “concerns about unaffordability,” and that “the revised costing profile is likely to be significantly higher.”77 The Government said in response to a written question in December 2022 that the Type 32 “remains a key part of the future fleet and is currently in 71 National Shipbuilding Office, National Shipbuilding Strategy Refresh, CP 605, 10 March 2022, p.8 72 Defence Committee, Fifth Special Report of Session 2021–22, “We’re going to need a bigger navy”: Government Response to the Committee’s Third Report, HC 1160, p. 15 73 HC Deb, 15 November 2022, Col. 16WS [Commons Written Ministerial Statement] 74 National Shipbuilding Office, National Shipbuilding Strategy Refresh, CP 605, 10 March 2022, p.19 75 HC Deb, 7 November 2022, Col. 17 [Commons Chamber] 76 PQ 80884 [Multi Role Ocean Surveillance Ship: Contracts], 7 November 2022 77 National Audit Office, The Equipment Plan 2022 to 2032, HC 907, 29 November 2022, p. 20 22 Defence in Scotland: military shipbuilding the concept phase. Work continues to ensure the programme is affordable.”78 In January 2023 it was reported that the ships may be dropped from the pipeline as part of the upcoming defence review.79 Witnesses expressed concern about what the loss of the Type 32 contract would mean for Scottish shipbuilding: Ian Waddell of the Confederation of Shipbuilding and Engineering Unions told the Defence Committee there was a fear that the ‘frigate factory’ at Rosyth could be lost if the Type 32 contract were to go elsewhere.80 Reports suggest that the frigates would directly support 1,200 jobs, as well as thousands more in the wider supply chain.81
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Government response AI summary
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 updating the shipbuilding pipeline at …
Read full response →
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 …
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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 for Scottish yards.
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Government response AI summary
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.
Read full response →
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 …
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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 with this is that all the pieces of the jigsaw are on the table in front of us, and it would not take too much to connect them to make a proper picture. We have the 30-year pipeline of work, which we have been campaigning for, for a long time. Having that visibility of all Government- owned or operated vessels is a big step forward. […] The missing link is to take that pipeline of work and turn it into a drumbeat of work for UK yards.82
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Government response AI summary
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.
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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 …
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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 the Senior Responsible Owners for the Type 26, Type 31, Astute and Dreadnought programmes provide the Committee with an annual report on each of their programmes within six months of the publication of this report, and then annually.83 In its response the Ministry of Defence said it would “provide a single annual update to the Defence Committee which will include an update on Surface Fleet availability and shipbuilding plans.”84 More than a year on from the publication of the Defence Committee’s report, the MOD has not yet published an update, despite indicating in a letter that it would provide one in October 2022.85 78 PQ 109433 [Warships: Procurement], 13 December 2022 79 The Times, Fears for Scots shipbuilding as prime minister prepares to scrap £2.5bn frigate order, 15 January 2023 80 Evidence taken before the Defence Select Committee, 17 May 2022, Q30 81 The Times, Fears for Scots shipbuilding as prime minister prepares to scrap £2.5bn frigate order, 15 January 2023 82 Q3 83 Defence Committee, Third Report of Session, “We’re going to need a bigger Navy”, HC 168, p. 56 84 Defence Committee, Fifth Special Report of Session 2021–22, “We’re going to need a bigger Navy”: Government Response to the Committee’s Third Report, HC1160, p. 14 85 Letter from the Minister of State for Defence Procurement to the Chair of the Defence Select Committee, 13 June 2022 Defence in Scotland: military shipbuilding 23
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Government response AI summary
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.
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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 …
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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 see a Scottish warship building industry in an independent Scotland.”87 John Howie of Babcock, however, indicated that the constitutional debate was not a concern. Discussing recent investment in Babcock’s facilities at Rosyth, he said the reality is that your business can operate from wherever it needs to. We would not have invested that money in the site at Rosyth if we were expecting to have to make changes to it.88
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Government response AI summary
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.
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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. …
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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. However, there remains some uncertainty about the pipeline in the 2030s and 2040s, such as the basis on which the Type 45 destroyers will be replaced. The Scottish shipbuilding industry should not be given cause to doubt that it will have a consistent order book in the future, so long as it continues to deliver on its commitments to its Government customers.
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Government response AI summary
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 provide a more sustainable demand …
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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 …
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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 invest in the future with a clear commitment that it will strategically use its contracts to sustain the national capacity to design and build warships in Scotland, so long as industry continues to deliver on its own contractual commitments.
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Government response AI summary
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 vessels.
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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 …
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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 UK Government have stated: “The strategic and long-term investments continue to be on track and will increase the capability and size of the fleet.”89
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Government response AI summary
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 in Scotland.
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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 …
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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 Type 32 frigates as set out in the National Shipbuilding Strategy Refresh, and whether the timeline for the Type 32s has changed as a result of concerns about the affordability of the initial plans. The MOD should also set out whether the cancellation of the National Flagship has created a gap in the pipeline, and if so how this gap will be filled. 86 Q129 87 Q133 88 Q87 89 The Times, Fears for Scots shipbuilding as prime minister prepares to scrap £2.5bn frigate order, 15 January 2023 24 Defence in Scotland: military shipbuilding Type 26 frigate contract
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Government response AI summary
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 ships are being brought forward.
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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 …
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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 MOD claims the contract will support 1,700 jobs in Govan and Scotstoun, and that as a result of the contract BAE will invest £1.2 billion in the UK supply chain, supporting a further 2,300 jobs. This investment includes the construction of a new covered shipbuilding hall at Govan, which will allow two frigates to be built simultaneously under cover. Prior to the announcement of the decision, Sir Simon Lister told us progress was already being made towards construction because of the Government’s strong commitment to Batch 2; he said the hall would be operational in two years’ time and described it as a “very important fillip for our workforce.”91 In addition to the work generated for BAE directly, the MOD says £248 million of work in the manufacturing supply chain will be in Scotland, compared with £749 million in England.92 Vice Admiral Paul Marshall gave two specific examples of parts of the ships that would be built by the Scottish supply chain: the stabilisers—to be built in Dunfermline—and the mission bay doors—to be built in Edinburgh.93
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Government response AI summary
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 improve efficiency.
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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 …
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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 per cent, or £233 million.94 The Defence Secretary explained the delay as being [d]ue to the impact of covid-19, where the Govan yard was required to shut down for a number of weeks, and challenges typical of those experienced with the first of class ship, including finalising the ship design and timely delivery of key new to service equipment.95 He later clarified in evidence to us that the delay had been due to a fault in the test bed used to test the ship’s gearbox.96
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Government response AI summary
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 revised forecast Initial Operating Capability …
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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
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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
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Government response AI summary
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.
Read full response →
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 …
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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 and increased costs. 90 HC Deb, 15 November 2022, Col. 16WS [Commons Written Ministerial Statement] 91 Q58 92 Ministry of Defence, Press release: British shipyard awarded £4.2 billion to build Royal Navy ships, 15 November 2022 93 Q167 94 HC Deb, 20 November 2022, Col 23WS [Written Ministerial Statement] 95 HC Deb, 20 November 2022, Col 23WS [Written Ministerial Statement] 96 Q236 97 Defence Committee, Third Report of Session, “We’re going to need a bigger Navy”, HC 168, p. 56 Defence in Scotland: military shipbuilding 25
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Government response AI summary
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.
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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 …
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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 an update. Fleet Solid Support ships
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Government response AI summary
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.
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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.
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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.
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Government response AI summary
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.
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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 …
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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 as really important. Do they have the capacity to absorb that work? Yes. Would the absence of that FSS work prejudice that continuity and the sustainability of that workforce? Yes, but we go looking for other work to plug that gap.98 Professor Keith Hartley and Hans Pung of RAND Europe also took the view that the FSS was potentially important to the future workload. Responding to the suggestion that the FSS contract was a “litmus test” for the National Shipbuilding Strategy, Professor Hartley said this was something he would “certainly accept and acknowledge.”99 Mr Pung said he was “not sure I would characterise it as a litmus test” but that alternative options would be needed in the future workload in the absence of the FSS.100
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Government response AI summary
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.
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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 AI summary
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.
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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 …
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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 the latest order of Fleet Solid Support ships. It should also set out what work could potentially make use of that capacity in the absence of the FSS. 98 Q87 99 Q156 100 Q157 26 Defence in Scotland: military shipbuilding 3 Scottish SMEs and shipbuilding supply chains MOD spending with SMEs in Scotland
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Government response AI summary
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 vision for UK shipbuilding is …
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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
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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
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Government response AI summary
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.
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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 …
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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 cent of total MOD procurement expenditure was with top ten suppliers.102 The MOD acknowledges this and has a Defence SME Action Plan, with a target that 25 per cent of the department’s procurement spend will go directly and indirectly to SMEs in 2022.103 Vice Admiral Paul Marshall, Director General for Ships at Defence Equipment & Support, told us that at present the proportion stood at 23 per cent, but that MOD was “on track to get there by the end of the financial year.”104
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Government response AI summary
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.
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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 …
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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 £1 billion total spent with SMEs in 2020/21. Scottish SMEs account for 6.2 per cent of all UK SMEs.105 When we put this to the Defence Secretary he accepted that the 2.5 per cent figure sounded “rather low.”106 Our previous report on the military landscape in Scotland noted that 2.5 per cent is far below the UK average for a region, and below Scotland’s population share of the UK. Witnesses we spoke to during that inquiry suggested this was because the MOD was culturally disposed towards working with contractors in the south of England with whom it had existing relationships and was slow to change. This led us to conclude that there was an “engrained hesitancy within the defence sector towards working with Scottish SMEs.”107 The UK Government in its response said it “reject[ed] the Committee’s view.”108
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Government response AI summary
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% of total direct SME spend.
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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, …
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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, 29 September 2022 102 Ministry of Defence, MOD trade, industry and contracts 2022, 29 September 2022 103 Ministry of Defence, Policy paper: Opportunity and Innovation: The Defence Small and Medium-sized Enterprise (SME) Action Plan, 27 January 2022 104 Q241 105 Department for Business, Energy and Industrial Strategy, Business population estimates for the UK and regions 2022: statistical release, 6 October 2022 106 Q245 107 Defence in Scotland: military landscape, First Report of Session 2022–23, HC 82, pp. 14–16 108 Defence in Scotland: military landscape: Government Response to the Committee’s First Report, Third Special Report of Session 2022–23, HC 674, p. 2 109 Ministry of Defence, Policy paper: Opportunity and Innovation: The Defence Small and Medium-sized Enterprise (SME) Action Plan, 27 January 2022 Defence in Scotland: military shipbuilding 27 access for and engagement with SMEs. Neither the Action Plan nor the MOD’s response to our previous report propose actions to specifically addresses the under-representation of Scottish SMEs, however. Indeed, the MOD’s response to our report is explicit that “improving SME engagement is a nation-wide issue and we are taking a national, rather than regional approach.”110
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Government response AI summary
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.
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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 …
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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 really take a hard look at the benefit of industry clusters,” noting that strong maritime clusters in Scotland already exist. The MOD itself recognises the strengths of shipbuilding clusters around the Clyde in the National Shipbuilding Strategy Refresh, and the UK Government’s Maritime 2050 strategy gives a firm commitment to supporting regional maritime clusters, including in Scotland.111 Kevin Craven, Chief Executive Officer of ADS Group, noted that the MOD has already done some work to involve SMEs in defence supply chains through the regional cluster programme.112
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Government response AI summary
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.
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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 …
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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 is missing an opportunity by not doing more to encourage innovation and collaboration by supporting SME clusters around Scotland’s shipyards.
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Government response AI summary
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 in supporting the supply chain, …
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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 …
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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 the growth of the Scottish Maritime Cluster as was promised in the Maritime 2050 strategy in 2019. To support the growth of these clusters the MOD needs to address barriers to Scottish SMEs working with the Ministry.
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Government response AI summary
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.
Read full response →
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 …
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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 spent with Scottish SMEs. Social value
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Government response AI summary
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 SMEs in that year, representing …
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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 …
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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 MOD will use to evaluate social value are tackling economic inequality, fighting climate change and equal opportunity.114 Some 110 Defence in Scotland: military landscape: Government Response to the Committee’s First Report, Third Special Report of Session 2022–23, HC 674, p. 2 111 National Shipbuilding Office, National Shipbuilding Strategy Refresh, CP 605, 10 March 2022, p.51; Department for Transport, Maritime 2050: Navigating the Future, 24 January 2019 112 Q24 113 Ministry of Defence (DIS0031) 114 Q28 28 Defence in Scotland: military shipbuilding witnesses suggested different criteria should be used to measure social value: Ian Waddell of the Confederation of Shipbuilding and Engineering Unions argued in favour of the number of UK jobs supported by a bid, the value put into UK supply chains, and the level of tax to be paid in the UK, among others; Richard Powell of the Society of Maritime Industries argued that skills development should be a criterion.115 In evidence from the MOD it appeared these were used as criteria in at least some contracts. Vice Admiral Paul Marshall told us In terms of what more we can do, we put a heavy premium on social value in the contracting phase, and a big part of that is in supply chain development and encouraging our suppliers to develop the local supply chain for small to medium-sized enterprises. The Type 26 was a single-source contract, with BAE, and the social value framework did not apply. For the Type 31, we definitely applied those rules; we incentivised the development of the supply chain for the Type 31. We did similarly for Fleet Solid Support.116
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Government response AI summary
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.
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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 …
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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 Kevin Craven of ADS Group gave us the example of job creation, asking how the MOD would judge “the difference between a bidder offering 200 new jobs for five years compared with someone who commits to maintaining 150 permanent jobs.”118 Hans Pung of RAND Europe said it was not clear whether only social value delivered in the UK would be counted towards the criteria, and if so how that would be measured.119 It was also not clear what penalties contractors would face if they did not deliver the social value they had promised.120 When we asked how delivery of social value was measured, we were told by Vice Admiral Paul Marshall that “we are getting greater detail on where it is working, because we have the governance in place because it is a contractual obligation.”121 He added that apprentice numbers were one measure that was being used.122
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Government response AI summary
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.
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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.
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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.
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Government response AI summary
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.
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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 …
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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 challenge contractors where targets are in danger of being missed. We encourage the Scottish Government to provide any assistance it can in measuring and monitoring social value of these contracts to local authority areas and economies. 115 Qq30–31 116 Q168 117 Evidence taken before the Defence Select Committee, 17 May 2022, Q34 118 Q28 119 Q160 120 Q239 121 Q233 122 Q234 Defence in Scotland: military shipbuilding 29 Understanding shipbuilding supply chains
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Government response AI summary
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 performance management terms.
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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 …
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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 […] These supply chains are very complex, and Governments do not understand them and do not have any knowledge about them. They have knowledge about the first tier suppliers to the primes, but beyond that they really do not understand and have little knowledge.123 Knowledge gaps in this area make it more difficult to assess risks. For example, if a prime contractor sources components from a sole supplier, there is a risk of significant disruption if that supplier goes out of business. The MOD has recognised the importance of building more resilient supply chains in its new Defence Supply Chain Strategy, published in November 2022, which places a new emphasis on resilience in response to challenges like the COVID-19 pandemic and the conflict in Ukraine.124 Improving understanding of supply chains could also bring opportunities. For example, as industry knowledge about regional supply chains grows it could encourage greater collaboration between neighbouring businesses.125
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Government response AI summary
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.
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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 …
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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 system.”126
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Government response AI summary
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.
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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 …
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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 help to achieve this aim.
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Government response AI summary
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.
Read full response →
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 …
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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 Q138 124 Strategic Command Defence Support, Defence Supply Chain Strategy, 15 November 2022 125 Department for Transport, Maritime 2050: Navigating the Future, 24 January 2019 126 Q236 30 Defence in Scotland: military shipbuilding 4 Skills in Scottish shipbuilding
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Government response AI summary
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.
Read full response →
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 …
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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 specialised systems to support military operations. These ships therefore demand an even more highly skilled workforce. Currently much of the UK’s knowledge and expertise in this area is based in Scotland.128
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Government response AI summary
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.
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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, …
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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, Fife College and the University of Strathclyde. Skills challenges in shipbuilding
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Government response AI summary
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.
Read full response →
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 …
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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 Witnesses identified several challenges facing the shipbuilding sector in relation to skills. One example was demographic change, and the difficulties that the sector faces in replacing a large generation of employees due to retire in the next five to ten years.131 Shipbuilders and trade unions told us that the challenge did not lie so much in recruiting younger people and apprentices, but in recruiting and retaining more experienced personnel. Sir Simon Lister of BAE and John Howie of Babcock both identified the recruitment of steelworkers as a particular challenge, noting that these skills were increasingly in demand across many sectors of the economy.132 Sir Simon suggested one reason it might be difficult to recruit experienced staff may be that “the absence of a national shipbuilding strategy in the last 15 years has led to a quiet atrophy of the intake and the training of the next generation,” but added that “in the last five years, progress has begun to accelerate again.”133
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Government response AI summary
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.
Read full response →
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 …
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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 is hard to retain workforces.”134 Richard Powell of the Society of Maritime Industries (SMI) explained that “[i]f you have that uncertainty because you have been four years on a contract or six years on a Type 45 and so on, and there is no prospect of future work, they will go.”135 Professor John Louth 127 Q42; Q95; Q101; Qq148–149 128 Professor Trevor Taylor, RUSI (DIS0033) 129 Q38 130 City of Glasgow College (DIS0035) 131 Q62 132 Q75 133 Q77 134 Q83 135 Q44 Defence in Scotland: military shipbuilding 31 suggested a further factor that might make retaining talented staff difficult: […] there is a suggestion that many young professionals take advantage of excellent corporate graduate schemes to hone their engineering and scientific skills, then leave at an early opportunity to explore more entrepreneurial leanings rather than being trapped in conventional, non-cutting-edge design, build and maintenance bureaucracies.136 He pointed to research showing that around 80 per cent of individuals who leave the defence sector before the normal retirement date do not return to the sector.137
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Government response AI summary
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 of recommended actions in autumn …
Read full response →
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 …
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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 more time [employers] have to understand what the future programme looks like, the more their opportunity should be to grow [their workforce] productively.”139
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Government response AI summary
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.
Read full response →
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, …
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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, in particular, to advances in manufacturing technology for which retraining would be required.140 John Howie gave a practical example of how reskilling could help bring workers from other sectors into shipbuilding: As technology evolves, we need to think about where there might be people with sympathetic skillsets who can be easily retrained. For example, as we move from the world of internal combustion engine cars to electric vehicles, the demands for complex vehicle maintenance will decline, so there is a load of people out there with good mechanical and electrical skills who could be easily retrained to work in complex platforms, because the world of work is evolving.141
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Government response AI summary
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.
Read full response →
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 …
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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 we come to ask questions about the skills, we do not have much published information on the skills composition.”142 He argued that more research was needed to understand what skills were needed in shipbuilding, and therefore what training courses were required.143 Professor John Louth agreed that the UK’s capability gaps were something that “can be identified and known but we generally fail to measure, meaning that private sector workforce competencies, for 136 Professor John Louth (DIS0028) 137 Professor John Louth (DIS0028) 138 City of Glasgow College (DIS0035) 139 Q144 140 City of Glasgow College (DIS0035) 141 Q99 142 Q142 143 Q142 32 Defence in Scotland: military shipbuilding government, remain a strategic vulnerability.”144 One of the tasks of the UK Shipbuilding Skills Taskforce (the work of which we explore in further detail in the next section) is to develop the UK Government’s understanding of shipbuilding skills.145
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Government response AI summary
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.
Read full response →
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.
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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.
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Government response AI summary
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.
Read full response →
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 …
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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 are devolved matters, we equally encourage the Scottish Government to develop its understanding of the skills profile required in the shipbuilding sector. This will help both governments, education sectors and the shipbuilding industry to anticipate and respond to the needs of Scottish yards. The UK Shipbuilding Skills Taskforce
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Government response AI summary
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.
Read full response →
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 …
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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 industry’s skills needs and provide solutions to skills shortages, particularly those related to new and emerging technologies.”147 The UKSST has initially been tasked with building a picture of the skills needs and barriers within the shipbuilding industry; the Taskforce will then prepare a Shipbuilding Skills Strategy by 2023, which will include recommendations to help the UK shipbuilding sector meet its skills requirements, before taking steps to begin implementing those recommendations.148
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Government response AI summary
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.
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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 …
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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 specific skills and knowledge that other areas of shipbuilding do not.150 The UK Shipbuilding Skills Taskforce does not have a specific objective to support the development of the skills needed by the warship industry in particular, although warships are part of its remit.151
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Government response AI summary
The government states the UKSST will consider the skills requirements for the entirety of the shipbuilding enterprise, including the warship sector.
Read full response →
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 …
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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 Department for Education, Terms of reference for the UK shipbuilding skills taskforce, August 2022; City of Glasgow College (DIS0035) 146 National Shipbuilding Office, National Shipbuilding Strategy Refresh, CP 605, 10 March 2022, p.66 147 National Shipbuilding Office, National Shipbuilding Strategy Refresh, CP 605, 10 March 2022, p.66 148 Department for Education, Terms of reference for the UK shipbuilding skills taskforce, August 2022 149 National Shipbuilding Office, National Shipbuilding Strategy Refresh, CP 605, 10 March 2022, p.13 150 Professor Trevor Taylor, RUSI (DIS0033) 151 Department for Education, Terms of reference for the UK shipbuilding skills taskforce, August 2022 152 Q26; ADS Group Ltd (DIS0024); Society of Maritime Industries (DIS0027) Defence in Scotland: military shipbuilding 33 don’t just plug gaps today.153 City of Glasgow College welcomed the National Shipbuilding Strategy Refresh’s “lucid appreciation of the pivotal importance of skills” and the creation of the Taskforce.154
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Government response AI summary
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 to meet with the Committee …
Read full response →
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 …
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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 The National Shipbuilding Strategy Refresh recognises this and states that the Taskforce “will work jointly with the Devolved Administrations in Scotland, Wales and Northern Ireland to ensure the shipbuilders and the supply chain in all parts of the UK can access the skills they need.”156 The Secretary of State told us that “the Scottish Government and the British Government can work hand in hand on…improving STEM skills, science skills and engineering skills to support shipbuilding. Scottish shipbuilders are represented on the Skills Taskforce, and it is chaired by Captain Dr Paul Little, the Principal and Chief Executive of City of Glasgow College.157 Engagement with the Scottish Government appears to have already begun: Minister Ivan McKee MSP welcomed the fact that the Scottish Government had already had opportunities to engage with the Taskforce.158 However, the Taskforce’s terms of reference do not include a specific objective to encourage coordination of skills policies across UK jurisdictions.159
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Government response AI summary
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 its recommendations work for England, …
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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 …
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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 the Taskforce’s report in September 2023.
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Government response AI summary
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 pleased to meet with the …
Read full response →
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.
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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.
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Government response AI summary
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.
Read full response →
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 AI summary
The government states the UKSST will consider the skills requirements for the entirety of the shipbuilding enterprise, including the warship sector.
Read full response →
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 AI summary
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 and long term.
Read full response →
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 …
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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 with the UK Government and other devolved administrations to respond to those needs. 153 Q95 154 City of Glasgow College (DIS0035) 155 Q26 156 National Shipbuilding Office, National Shipbuilding Strategy Refresh, CP 605, 10 March 2022, p.66 157 HM Government, UK Shipbuilding Skills Taskforce membership confirmed, 24 May 2022 158 Q103 159 Department for Education, Terms of reference for the UK shipbuilding skills taskforce, August 2022 34 Defence in Scotland: military shipbuilding
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Government response AI summary
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 Shipbuilding Pipeline.
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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
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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
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Government response AI summary
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 Year Cross-Government Shipbuilding Pipeline.
Read full response →
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 AI summary
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.
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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 …
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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 additional resources as appropriate in response to new security threats, whether those come from malign actors or from climate change. The implications of this evolution will affect defence activities in Scotland in particular. The Russian invasion of Ukraine, which occurred shortly before the publication of the MOD’s paper and which has significant implications for the security of the region, illustrates this point. In the next section of this report, we explore several factors which are contributing to the region’s growing importance.
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Government response AI summary
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.
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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, …
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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, the Defence Command Paper will properly reflect the changed situation in the North Atlantic and the High North resulting from Russia’s illegal invasion of Ukraine.
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Government response AI summary
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 Command Paper had already been …
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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.
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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.
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Government response AI summary
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.
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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 …
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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 UK Government should set out its most recent assessment of these challenges. Among the most important issues the UK Government must consider are: • increasing Russian belligerence; • growing Chinese interest in Arctic politics; • the opening of new sea routes and the potential for increased maritime traffic as a consequence; • increasing resource competition; and • the vulnerability of offshore and subsea infrastructure. Defence in Scotland: the North Atlantic and the High North 41 Regardless of how the UK’s priorities in the region evolve, it is likely Scotland as part of the UK will continue to play a prominent role in meeting those aims.
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Government response AI summary
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 the 2021 and 2023 Integrated …
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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 …
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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 become more possible in the future. Increased maritime traffic presents economic and trade opportunities but also has practical and strategic implications, such as the increased risk of accidents and the probability that navigation rights will be asserted and challenged. It is highly likely that increasing maritime activity in the High North will create new responsibilities for the Royal Navy, and Scotland’s geography means it would be likely to play a role in fulfilling those duties.
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Government response AI summary
The government response is truncated and contains no substantive content regarding the recommendation.
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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 …
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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 Sea (UNCLOS) such as the right of innocent passage, and we believe that the MOD’s paper, The UK’s Defence Contribution in the High North, is right to make this a priority.
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Government response AI summary
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 and freedom of navigation, but …
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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 …
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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 own Exclusive Economic Zone. Investment in subsea surveillance like the Multi-Role Ocean Support Ships is welcome, but vulnerabilities remain. We heard that weaknesses in the legal regime governing subsea cables makes them a tempting target for malign actors. The UK Government told us that repair of subsea cables was a matter for the cables’ commercial owners; we are concerned that the UK Government did not have more to say about how such important infrastructure could be repaired in the event of sabotage or failure.
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Government response AI summary
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.
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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.
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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.
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Government response AI summary
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 that any deliberate attack would …
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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 …
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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 to be built in Scotland.
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Government response AI summary
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 regarding its capability or build …
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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 …
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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 is true of the Joint Expeditionary Force, which may need to respond to new challenges in 42 Defence in Scotland: the North Atlantic and the High North the North Atlantic and the High North. It is highly likely that UK capabilities based in Scotland will be an important part of the contribution to NATO and JEF in the region.
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Government response AI summary
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 participates in JEF discussions on …
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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.
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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.
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Government response AI summary
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 challenges and prepare for any …
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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 AI summary
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 ambassadorial rank to strengthen engagement …
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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 …
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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 region.
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Government response AI summary
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 UK.
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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.
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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.
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Government response AI summary
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.
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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 …
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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 Atlantic and the High North
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Government response AI summary
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.
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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 …
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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 the naval base at Faslane plays a critical role in UK and NATO defence strategy, because of its location close to the strategically critical Greenland-Iceland UK (GIUK) gap and the role it plays in hosting and protecting the Continuous At-Sea Deterrent. We also heard that the RAF base at Lossiemouth provides vital surveillance and threat response capabilities, including Quick Reaction Alert (QRA).
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Government response AI summary
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.
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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 …
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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 deterrent as essential to its defence policy, and Scottish bases are important to the deployment and protection of that deterrent. (Paragraph 87) Defence in Scotland: the North Atlantic and the High North 43
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Government response AI summary
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.
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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 …
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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 support this view, we do recognise the serious implications for the UK and NATO should the nuclear fleet ever be removed from Faslane.
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Government response AI summary
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.
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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 …
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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 should consider how rapidly capacity for basing and operating assets from Scottish bases could be increased if required.
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Government response AI summary
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 bases for basing assets, including …
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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 …
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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 has sufficient aircraft to maintain the necessary presence in the North Atlantic and the High North without withdrawing resources from elsewhere.
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Government response AI summary
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 fleet, stating it remains confident …
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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, …
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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, and whether any increase in activity required in the region will require resources to be diverted from objectives elsewhere. The MOD must review whether the complement of aircraft it has available is sufficient to meet the increasing security demands in the North Atlantic and the High North.
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Government response AI summary
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 existing P-8 procurement decisions, maintaining …
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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 …
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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 complementary capabilities operated by our NATO allies, this will need to be addressed.
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Government response AI summary
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 in Q1 2024 and ratified …
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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 …
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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 and technology might be needed, and whether there are sufficient numbers of appropriately trained personnel to operate in such environments. Because of Scotland’s Arctic-facing geography, Scotland- based capabilities must be a focus of this review. The UK Government should report its findings to the House before Parliament dissolves for the next general election.
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Government response AI summary
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.
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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 …
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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 the Department for Science, Innovation and Technology will be publishing a space 44 Defence in Scotland: the North Atlantic and the High North sector policy before the end of the year. We plan to explore UK Government support for the space sector in greater detail in our upcoming inquiry on Scotland’s space sector.
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Government response AI summary
The government response is a header and contains no substantive information.
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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 AI summary
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.
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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 …
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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 Parliament is dissolved for the next general election.
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Government response AI summary
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.
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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 …
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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 for Science, Innovation and Technology’s upcoming space sector policy should clearly identify how to harness the potential of Scotland’s burgeoning space sector to support defence objectives, and set clear and measurable targets against which the success of the policy can be measured. (Paragraph 111) Defence in Scotland: the North Atlantic and the High North 45
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Government response AI summary
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.
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Scotland Office