Recommendations & Conclusions
67 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
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
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
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
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
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
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
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 …
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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
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
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
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.
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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.
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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
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
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.
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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
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.
Read full response →
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.
Read full response →
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 …
Read full response →
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.
Read full response →
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
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
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.
Read full response →
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
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
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
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.
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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.
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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 …
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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.
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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.
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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.
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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
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
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
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