Recommendations & Conclusions
70 items
1
Conclusion
First Report - Defence in Scotland: mil…
Scotland is experiencing a new era of confidence and investment in the defence sector. We welcome the MOD’s clear commitment to Scotland, shown, for example, by making it home to the UK’s submarine service, the new fleets of P8 Maritime Patrol and E-7 Wedgetail aircraft and that Scotland will host …
Government response. Grouped response for 1, 2, 3 MOD is firmly committed to the future of Defence in Scotland and its continued vital role in maintaining UK security. Likewise, we are grateful to the Committee for highlighting the positive role that the …
Scotland Office
2
Conclusion
First Report - Defence in Scotland: mil…
We welcome the increased military capabilities the MOD is gaining in Scotland, especially in light of ongoing increases in Russian aggression, and the importance that Scotland’s military capabilities play in strengthening the UK’s international alliances, such as NATO.
Government response. Grouped response for 1, 2, 3 MOD is firmly committed to the future of Defence in Scotland and its continued vital role in maintaining UK security. Likewise, we are grateful to the Committee for highlighting the positive role that the …
Scotland Office
3
Conclusion
First Report - Defence in Scotland: mil…
We note that the 2014 commitment to increase the number of Regular Armed Forces personnel has been superseded by changing strategic priorities. We welcome the 2021 Future Soldier programme to increase the number of battalions in Scotland and that Scotland will host a greater proportion of the Army in the …
Government response. Grouped response for 1, 2, 3 MOD is firmly committed to the future of Defence in Scotland and its continued vital role in maintaining UK security. Likewise, we are grateful to the Committee for highlighting the positive role that the …
Scotland Office
5
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
The MOD should, with the assistance of the Scotland Office, initiate a culture change process within its own ranks, and in its prime contractors, that addresses perceptions of engrained hesitancy towards working with SMEs in Scotland, with a view to increasing the proportion of SME spending north of the border …
Government response. The MOD notes the Committee’s recommendation and welcomes further involvement from Scottish SMEs in the Defence supply chain and notes the MOD has a target that 25% of its procurement spend will go directly and indirectly to SMEs by the …
Scotland Office
6
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
The military shipbuilding sector provides an important pipeline of highly skilled jobs for Scottish industry. While current Royal Navy Type 26 and Type 31 orders are very welcome, the future of the sector is dependent on favourable UK Government policies and a regular ‘drumbeat’ of orders, which we will explore …
Government response. The Government acknowledged the committee's highlighting the prosperity benefits that shipbuilding brings to Scotland, and mentions the National Shipbuilding Strategy Refresh and investment in UK shipbuilding, including opportunities for Scottish shipbuilders.
Scotland Office
7
Recommendation
First Report - Defence in Scotland: mil…
Acknowledged
The UK Government should clarify definitively its position on whether current policies potentially allow for Royal Navy warships (such as destroyers, frigates and fleet solid support ships) to be procured and/or built overseas. If this potential exists—which could have a dramatic impact on shipbuilding in Scotland—the MOD should indicate the …
Government response. The Government acknowledged the committee's concerns about the potential for warships to be procured/built overseas, mentions the National Shipbuilding Strategy Refresh and investment in UK shipbuilding, and says it will consider the long-term industrial impact of different options.
Scotland Office
8
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
MOD base closures, base expansions, speculation on base closures and reversals/ changes in basing decisions can all have major consequences for local communities in Scotland. All of the local authorities we heard from—regardless of whether they were facing MOD increases or decreases—desired greater collaboration with the MOD on basing decisions.
Government response. The MOD acknowledges the committee's conclusion and states it will continue to work closely with stakeholders on the release of surplus Defence land, as well as the maintenance and development of Defence establishments in Scotland.
Scotland Office
9
Conclusion
First Report - Defence in Scotland: mil…
The formal partnership arrangement between the MOD and Argyll and Bute Council has been a great success and should be seen as a model for MOD interactions with Scottish local authorities. The MOD and relevant local authorities in Scotland should work together to increase the use of formal partnership arrangements.
Government response. MOD thanks the Committee for highlighting the success of the Argyll and Bute partnership arrangement and is committed to working with Scottish local authorities including through the use of formal partnership arrangements where appropriate.
Scotland Office
10
Conclusion
First Report - Defence in Scotland: mil…
The MOD should intensify its collaboration efforts with all Scottish local authorities facing base closures or base expansions, and engage with them at earlier stages in those processes. The MOD should also work with Scottish local authorities to jointly produce, and act on, impact assessments to help ease local challenges …
Government response. MOD notes the Committee’s recommendation. As indicated at paragraph 8, basing decisions are made entirely on military requirement after considered assessment and scrutiny. Local economic assessments are not routinely conducted. However, MOD will continue to work with local authorities to …
Scotland Office
11
Conclusion
First Report - Defence in Scotland: mil…
Acknowledged
While defence is wholly reserved to the UK Government, MOD decisions on military basing nonetheless have significant implications for areas of devolved competence, such as child education, healthcare and housing.
Government response. The MOD was proud to launch the revised ten-year UK Armed Forces Families Strategy (2022– 32) in January 2022 and will continue to engage with its stakeholders to ensure fair and equitable treatment of service personnel across the UK.
Scotland Office
12
Conclusion
First Report - Defence in Scotland: mil…
MOD engagement processes on military basing decisions currently take place predominantly between the MOD and affected local authorities and health boards. While this approach might work in England, in Scotland an adapted approach is needed in order to recognise the different regulatory frameworks and the role of the Scottish Government …
Government response. MOD acknowledges that basing-related engagement takes place at the operational level with affected local authorities and health boards; this should continue between Officials best placed to handle both the detail of infrastructure delivery and policy issues arising from it, where …
Scotland Office
13
Conclusion
First Report - Defence in Scotland: mil…
The MOD should increase its efforts to collaborate with the Scottish Government on basing decisions. This would facilitate improved information sharing, in both directions—for example, in relation to future basing intentions and the likely impact on local communities.
Government response. We have had to make some difficult decisions to reduce the size of the Defence estate in Scotland and elsewhere in the UK. Whilst basing decisions are based entirely on military requirement after considered assessment and scrutiny, it is recognised …
Scotland Office
14
Conclusion
First Report - Defence in Scotland: mil…
The Scottish Government must commit to properly funding local authorities and health boards local to military bases to ensure there is sufficient provision in place. This was not the case for dental and maternity services for military families in Moray. Defence in Scotland: military landscape 37 Both of these efforts …
Government response. While outwith the locus of the MOD, I have asked my officials to share this recommendation with their SG counterparts. Movement of personnel in and out of Scotland
Scotland Office
15
Conclusion
First Report - Defence in Scotland: mil…
While improvements have been made in this area—for example the Scottish Government’s ‘Welcome to Scotland’ guide—there is scope for the MOD to be more proactive in the information it routinely shares with Armed Forces personnel and their families when they move to bases in Scotland, and from Scotland.
Government response. Grouped response for 15, 16 MOD notes the Committee’s recommendation that there should be improved awareness amongst Armed Forces personnel and their families on the differing education, healthcare, tax and professional qualifications systems. We are committed to continuing to work …
Scotland Office
16
Conclusion
First Report - Defence in Scotland: mil…
The MOD should conduct a review of the formats and quality of information it proactively and routinely shares with all Armed Forces personnel and their families when they move to bases in Scotland, and from Scotland. The Scottish Government should also review their own information to make the transition for …
Government response. Grouped response for 15, 16 MOD notes the Committee’s recommendation that there should be improved awareness amongst Armed Forces personnel and their families on the differing education, healthcare, tax and professional qualifications systems. We are committed to continuing to work …
Scotland Office
7
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response to this report, the UK Government should confirm on what date it determined that Team UK’s bid for the Fleet Solid Support ships contract was non- compliant with the terms of the competition, what work was done to resolve the compliance issues identified, and on what date …
Government response. The government stated that bidders were fully aware of the evaluation criteria and that Team Resolute was informed of the decision on 10 November 2022, formally appointed on 15 November 2022.
Scotland Office
8
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The export of the Type 26 and Type 31 design licences is a great success story for the Scottish shipbuilding industry, and we are confident that further exports will follow. At the same time, export opportunities cannot be depended upon to provide consistent work for the Scottish military shipbuilding industry …
Government response. The MOD notes the success of exporting the Global Combat Ship, estimating it will create/sustain 5,000 export-led jobs and enable £6bn in potential export contracts. They state the NSbS Refresh recognizes the role of exports in growing the shipbuilding enterprise.
Scotland Office
9
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The role of exports of military ships/design licences in the National Shipbuilding Strategy should be to supplement, and not to replace, domestic demand. The UK Government should be prepared to use shipbuilding contracts strategically to sustain shipbuilding capacity in Scotland in circumstances where the export environment is more challenging than …
Government response. The MOD noted the success of exports, estimating they will create or sustain 5,000 export-led jobs in the UK and will enable c.£6 billion of potential export contracts to flow to UK suppliers. The NSbS Refresh recognizes the role that …
Scotland Office
10
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the National Shipbuilding Office is a welcome development that can bring greater coherence to shipbuilding planning. At the same time, we note that the NSO does not have formal powers and will therefore rely on its ability to manage and influence stakeholders.
Government response. The NSO is a strategic organization that oversees all of the Government’s shipbuilding interests. The NSO reports to the Secretary of State for Defence, who in his role as Shipbuilding Tsar has the ability to hold other Ministers to account …
Scotland Office
12
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The establishment of a National Shipbuilding Office hub in Edinburgh provides a welcome link to Scottish shipbuilders.
Government response. The Department is pleased that the committee recognizes the importance of the NSO’s physical presence in Scotland and has signed a lease for a base in Queen Elizabeth House in Edinburgh.
Scotland Office
14
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline the importance to Scottish shipyards of maintaining a dependable ‘drumbeat’ of orders to allow them to invest and grow. The days of ‘feast and famine’ must not return. The creation of the National Shipbuilding Strategy suggests that the UK Government appreciates the importance of this point. …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders and the NSbS aims to provide a sustainable demand signal through a 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
15
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Government should provide greater clarity about the work that will fill the whole of the 30-year shipbuilding pipeline into the 2030s and 2040s. It is of course difficult to calculate precise military needs beyond 2050. However, the UK Government should give Scottish shipbuilders the confidence to continue to …
Government response. The MOD recognises the importance of maintaining a regular drumbeat of orders and refers to the NSbS and the 30-year Shipbuilding Pipeline. However, the details of shipbuilding programmes in the later decades will come with time.
Scotland Office
16
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Recent developments have introduced uncertainty about some orders in the pipeline and whether it sets out a clear ‘drumbeat’ of orders needed to sustain Scottish shipyards. The Fleet Solid Support Ships and the National Flagship are two examples. There has been some media speculation about the Type 32s, although the …
Government response. The MOD recognizes the importance of a regular drumbeat of orders. The 30-year cross-Government Shipbuilding Pipeline of over 150 new vessels aims to provide a sustainable demand signal, encouraging industry investment. The NSO will update the pipeline at each multi-year …
Scotland Office
17
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response to this report, and in its annual shipbuilding update to the Defence Select Committee, the UK Government should provide an update on the current status of the military shipbuilding pipeline for Scottish naval yards. In particular, it should confirm whether the MOD still intends to order the …
Government response. The government stated its intention to have more frigates and destroyers. The T32 programme is in concept phase, the National Flagship was suspended to bring forward the Multi Role Ocean Surveillance (MROS) ships.
Scotland Office
18
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The award of the contract to build five additional Type 26 frigates to BAE Systems is welcome news for Scottish shipbuilding, and importantly continues the shipbuilding ‘drumbeat’ into the medium-term. We note that, partly as a consequence of global challenges, the first batch of Type 26 vessels has faced delays …
Government response. The government acknowledged the delays and increased costs of the first batch of Type 26 vessels due to global challenges.
Scotland Office
19
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
Given the ongoing global uncertainties we ask the UK Government to provide annual updates on the construction of the Type 26 vessels to both Houses of Parliament. We note that the Defence Select Committee has made a similar recommendation, but that the Ministry of Defence has not yet provided such …
Government response. The MOD welcomes the committee’s interest in the construction of Type 26 and will consider its request when providing updates to Parliament on key Defence programmes.
Scotland Office
21
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response, the UK Government should set out how much capacity it expects to now be available in the Scottish warship industry in each of the years between 2025– 2032 as a result of the decision to select Team Resolute rather than Team UK as the preferred bidder for …
Government response. The Fleet Solid Support contract will still provide opportunities for Scotland in Harland and Wolff’s Methil and Arnish sites, stating there will be ample opportunity for Scottish naval shipyards to fill their order books over the next decade. The NSO …
Scotland Office
27
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard that historically the Ministry of Defence’s understanding of shipbuilding supply chains had been a vulnerability. The Secretary of State told us this had subsequently improved. The new Defence Supply Chain Strategy’s emphasis on building resilience in supply chains is welcome, and improving understanding of supply chains further will …
Government response. The MOD is operating a Supply Chain Resilience Programme and introducing a new Defence Condition (DEFCON) to improve understanding of supply chains and address vulnerabilities.
Scotland Office
29
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard evidence that the MOD and the Scottish Government could both have a better understanding of the skills profile of the shipbuilding workforce. This makes workforce planning for a highly advanced sector like military shipbuilding more challenging.
Government response. The UK Shipbuilding Skills Taskforce (UKSST) seeks to address this challenge by collaborating across Government, the Devolved Administrations, industry and training providers to develop and implement a future-focussed skills strategy. The UKSST includes representatives from both Skills Development Scotland and …
Scotland Office
31
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the UK Shipbuilding Skills Taskforce shows a welcome recognition of the importance of long-term workforce planning in shipbuilding. This kind of planning is essential if Scottish yards are to have the highly-skilled workers they need to thrive in the future. We look forward to the publication of …
Government response. The NSO agrees that workforce planning by the UKSST is essential. The 30-Year Cross-Government shipbuilding pipeline provides transparency and encourages investment in skills. The NSO also recognizes shared ambitions between the work of the UKSST and Scotland’s National Strategy for …
Scotland Office
33
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline that the additional complexity of building warships demands highly specialised skills and knowledge, and that these will need to be updated and refreshed as warship design and manufacture evolves.
Government response. The UKSST will consider the skills requirements and know-how for the entirety of the shipbuilding enterprise, including the warship, commercial, workboat and leisure market sectors, both in the short and long term. The UKSST will also consider the impact of …
Scotland Office
34
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Shipbuilding Skills Taskforce’s report should identify the skills demands of the warship industry specifically, as well as steps that can be taken to meet those needs.
Government response. The UKSST will consider the skills requirements and know-how for the entirety of the shipbuilding enterprise, including the warship, commercial, workboat and leisure market sectors, both in the short and long term. The UKSST will also consider the impact of …
Scotland Office
35
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Skills policies will best support the shipbuilding industry if the UK and Scottish Governments’ approaches complement each other. For this to happen, education policymakers in Scotland will need to be able to receive clear signals about the skills needs of the defence sector, and will need routes for working together …
Government response. The UKSST, NSO and DfE welcome the signal from the Committee to work collaboratively to meet the skills needs of the sector through the existing education system. The NSO has committed to providing transparency on future orders and a stable …
Scotland Office
36
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Shipbuilding Skills Taskforce should have a specific objective to encourage coordination between different jurisdictions in the UK, so that a common effort can be made towards supporting shipbuilding in Scotland and other parts of the UK. (Paragraph 98) 8 Defence in Scotland: military shipbuilding Introduction Shipbuilding in Scotland
Government response. The UKSST, NSO and DfE welcome the signal to work collaboratively to meet skills needs, recognizing skills is a devolved issue. The UKSST is committed to ensuring its recommendations work for all UK nations and has worked with Devolved Administrations.
Scotland Office
37
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the National Shipbuilding Office is a welcome development that can bring greater coherence to shipbuilding planning. At the same time, we note that the NSO does not have formal powers and will therefore rely on its ability to manage and influence stakeholders.
Government response. The NSO is a strategic organization overseeing the Government’s shipbuilding interests, working with Departments to optimize shipbuilding requirements and reporting to the Secretary of State for Defence.
Scotland Office
39
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The establishment of a National Shipbuilding Office hub in Edinburgh provides a welcome link to Scottish shipbuilders.
Government response. The Department are pleased that the committee recognises the importance of the NSO’s physical presence in Scotland. The NSO is using the Edinburgh base to host staff, support visits and engagement and has made the space available for other Departments …
Scotland Office
42
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Stakeholders also emphasised that a steady ‘drumbeat’ could underpin future investment that would make the industry more productive in the future. Mr Waddell told us: It is a very simple equation. If businesses are faced with uncertainty, they do not invest. If they are faced with certainty and can guarantee …
Government response. The MOD recognises the importance of a regular drumbeat of orders and states the NSbS and 30-year pipeline aim to provide a sustainable demand signal. They also highlight workforce and programme details.
Scotland Office
43
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In written evidence, the UK Defence Journal set out their understanding of the shipbuilding pipeline for BAE Systems and Babcock as of April 2022 (Table 1). 64 BAE Systems (DIS0030) 65 UK Defence Journal (DIS0022) 66 Q2 67 Q3 68 Q12 69 UK Defence Journal (DIS0022); BAE Systems (DIS0030); Q144 …
Government response. The MOD fully recognises the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry. The NSbS is clear that we do not want a return to the “boom and bust” cycles of historic Naval demand, but to …
Scotland Office
44
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In his foreword to the National Shipbuilding Strategy Refresh, the Defence Secretary says the UK Government “will give industry a much clearer demand signal about what we are trying to achieve with our procurement programmes” and that for the first time the 70 Professor Trevor Taylor, RUSI (DIS0033) Defence in …
Government response. The MOD recognises the importance of a regular drumbeat of orders and states the NSbS and 30-year pipeline aim to provide a sustainable demand signal. They also highlight workforce and programme details.
Scotland Office
45
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Some parts of this pipeline have since been confirmed, such as the confirmation that the second batch of Type 26 frigates would be built by BAE at Govan (considered in more detail later in this chapter).73 However, the pipeline is also subject to change. The Refresh explains that The NSO …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and highlights the 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
47
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In addition to uncertainty around the Type 32 frigate, the selection of Team Resolute as the preferred bidder for the Fleet Solid Support ships contract (as discussed in paragraphs 20–27 above) also means that the FSS vessels (considered later in this chapter) will not be forming part of the drumbeat …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and highlights the 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
48
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Representatives from the shipbuilding industry told us that having sight of upcoming shipbuilding projects over the coming decades was helpful, but that it was less clear how this translated into a drumbeat of work for shipyards. Ian Waddell of the Confederation of Shipbuilding and Engineering Unions told us: My frustration …
Government response. The MOD recognises the importance of a regular drumbeat of orders and states the NSbS and 30-year pipeline aim to provide a sustainable demand signal. They also highlight workforce and programme details.
Scotland Office
49
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its December 2021 report “We’re going to need a bigger Navy”, the Defence Select Committee recommended that the Ministry of Defence provide Parliament with an annual shipbuilding plan, including the number of ships planned to enter and leave service each year in the next 30 years. We ask that …
Government response. The MOD acknowledges the committee's interest in the construction of Type 26 and will consider the request when providing updates to Parliament on key Defence programs.
Scotland Office
50
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard differing views over how decisions about how Scotland’s constitutional future might affect the shipbuilding pipeline. Professor Keith Hartley told us that “at the moment, the industry’s future depends on the Royal Navy. Without the Royal Navy, you would not have an industry.”86 He concluded that “I do not …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and highlights the 30-year cross-Government Shipbuilding Pipeline.
Scotland Office
51
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline the importance to Scottish shipyards of maintaining a dependable ‘drumbeat’ of orders to allow them to invest and grow. The days of ‘feast and famine’ must not return. The creation of the National Shipbuilding Strategy suggests that the UK Government appreciates the importance of this point. …
Government response. The MOD fully recognises the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry. The NSbS is clear that we do not want a return to the “boom and bust” cycles of historic Naval demand, but to …
Scotland Office
52
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Government should provide greater clarity about the work that will fill the whole of the 30-year shipbuilding pipeline into the 2030s and 2040s. It is of course difficult to calculate precise military needs beyond 2050. However, the UK Government should give Scottish shipbuilders the confidence to continue to …
Government response. The MOD recognizes the importance of maintaining a regular drumbeat of orders across the Shipbuilding industry and aims to provide a more sustainable demand signal from Government as a whole through the 30-year cross-Government Shipbuilding Pipeline of over 150 new …
Scotland Office
53
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Recent developments have introduced uncertainty about some orders in the pipeline and whether it sets out a clear ‘drumbeat’ of orders needed to sustain Scottish shipyards. The Fleet Solid Support Ships and the National Flagship are two examples. There has been some media speculation about the Type 32s, although the …
Government response. The MOD recognizes the importance of a regular drumbeat of orders and highlights the 30-year cross-Government Shipbuilding Pipeline. Scotland plays a vital role in defence shipbuilding, and the Type 26 Batch 2 contract reaffirms the UK Government's commitment to shipbuilding …
Scotland Office
55
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
During our inquiry the Prime Minister announced the decision that the second batch of Type 26 anti-submarine warfare frigates would be built by BAE in Glasgow.90 This means that, in addition to the three Type 26 ships already being built, five more vessels will be built on the Clyde. The …
Government response. The government acknowledges the importance of the Type 26 frigates, but reports that the Initial Operating Capability date of the first ship will be a year later than anticipated with additional costs, but work is underway to increase productivity and …
Scotland Office
57
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
As noted in the section above, the Defence Select Committee has recommended that the Ministry of Defence provides an annual shipbuilding update to Parliament, and annual updates on particular programmes including the Type 26 frigate. No such update has yet been provided.97
Government response. The MOD acknowledges the committee's interest in the construction of Type 26 and will consider the request when providing updates to Parliament on key Defence programs.
Scotland Office
58
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The award of the contract to build five additional Type 26 frigates to BAE Systems is welcome news for Scottish shipbuilding, and importantly continues the shipbuilding ‘drumbeat’ into the medium-term. We note that, partly as a consequence of global challenges, the first batch of Type 26 vessels has faced delays …
Government response. The MOD welcomes the committee’s interest in the construction of Type 26 and will consider its request when providing updates to Parliament on key Defence programmes.
Scotland Office
63
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
In its response, the UK Government should set out how much capacity it expects to now be available in the Scottish warship industry in each of the years between 2025– 2032 as a result of the decision to select Team Resolute rather than Team UK as the preferred bidder for …
Government response. The government states that the Fleet Solid Support contract will still provide opportunities for Scotland, and Scottish shipyards will have ample opportunity to fill their order books over the next decade, the NSO recognises that key to delivering this Government’s …
Scotland Office
64
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
In addition to its large shipyards, Scotland is home to a large number of Small and Medium-sized Enterprises (SMEs) which contribute to Scottish shipbuilding and to the wider defence sector. An SME is defined as a company with annual turnover of less than €50 million and fewer than 250 employees.101
Government response. The MOD published the SME Action Plan in 2022, which outlines the commitments being made to increasing and supporting opportunities for Small and Medium Enterprises (SMEs) and supports the Defence Suppliers Portal which offers SMEs access to view contracting opportunities.
Scotland Office
67
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The MOD’s SME Action Plan acknowledges some of the challenges SMEs face. The Plan notes that “improving access to opportunities for SMEs also requires support from MOD as the end customer”109 and proposes a number of actions aimed at improving 101 Ministry of Defence, MOD trade, industry and contracts 2022, …
Government response. The MOD refers to its existing SME Action Plan and digital outreach to support SMEs, and mentions the Department for Transport's lead role in the Regional Maritime Cluster Development Programme.
Scotland Office
73
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We heard there was some uncertainty over how MOD assessed social value, and how delivery of social value would be measured. Industry representatives told the Defence Committee that social value was “probably the biggest factor in deciding who will win these contracts, and we don’t understand what the criteria are.”117 …
Government response. Both the NSO and the MOD are committed to ensuring that social value commitments through Government shipbuilding procurements and investments are delivered, with the contracting authority mandated to assess the supplier’s performance.
Scotland Office
86
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Some contributors to our inquiry argued that addressing skills challenges was made more difficult by a lack of data on the skills composition of the UK workforce. Professor Keith Hartley told us that while the UK has “decent data on both direct and indirect employment in the UK’s defence industries…when …
Government response. The government states that the UK Shipbuilding Skills Taskforce (UKSST) is collaborating to develop and implement a skills strategy and will publish a report of recommended actions in autumn 2023.
Scotland Office
89
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The National Shipbuilding Strategy Refresh recognised the importance of skills as an issue, and in response announced the establishment of a UK Shipbuilding Skills Taskforce (UKSST). The Taskforce is run by the Department for Education, working with the National Shipbuilding Office.146 The Taskforce’s role is to “build a picture of …
Government response. The government states that the scope of the UKSST aligns with the NSbS Refresh and will consider the skills requirements for the entirety of the shipbuilding enterprise, as well as the impact of technological innovation.
Scotland Office
90
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The National Shipbuilding Strategy Refresh implicitly recognises that the design and building of warships is significantly more complex than for many other vessels, and includes warships as a discrete category when listing types of shipbuilding undertaken in the UK.149 It does not acknowledge as explicitly that the warship industry demands …
Government response. The government states the UKSST will consider the skills requirements for the entirety of the shipbuilding enterprise, including the warship sector.
Scotland Office
91
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the UKSST was widely welcomed by contributors to our inquiry.152 John Howie of Babcock described it as “a key example of…the longer term planning that is needed to ensure that we generate the next generation of the workforce, and that we 144 Professor John Louth (DIS0028) 145 …
Government response. The NSO agrees that workforce planning by the UKSST is essential, and that the 30 Year Cross-Government shipbuilding pipeline provides transparency to plan and manage its workforce, and encourages investment in skills; the Chair of the UKSST would be pleased …
Scotland Office
92
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
A complicating factor in the work of the Taskforce is the devolved nature of skills policy in parts of the UK, including in Scotland. Kevin Craven of ADS Group said “the devolved nature of the work involved means that co-ordination and collaboration, working together on these things, is desperately important.”155 …
Government response. The UKSST, NSO and DfE welcome this signal from the Committee to work collaboratively to meet the skills needs of the sector through the existing education system. The UKSST recognises skills is a devolved issue and is committed to ensuring …
Scotland Office
93
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
The creation of the UK Shipbuilding Skills Taskforce shows a welcome recognition of the importance of long-term workforce planning in shipbuilding. This kind of planning is essential if Scottish yards are to have the highly-skilled workers they need to thrive in the future. We look forward to the publication of …
Government response. The government agrees that workforce planning by the UKSST is essential and that the 30-year shipbuilding pipeline will provide industry with transparency to plan and manage its workforce and encourage investment in skills. The Chair of the UKSST would be …
Scotland Office
94
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We invite the UK Shipbuilding Taskforce, together with UK Government Ministers, to give oral evidence to the Committee when the UKSST’s report is published in autumn 2023, so that its findings can be discussed further and priorities identified to ensure Scottish shipyards have the skills they need.
Government response. The government agrees the workforce planning is essential and the Chair of the UKSST would be pleased to meet with the Committee following publication of its report.
Scotland Office
95
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
We wish to underline that the additional complexity of building warships demands highly specialised skills and knowledge, and that these will need to be updated and refreshed as warship design and manufacture evolves.
Government response. The government states the UKSST will consider the skills requirements for the entirety of the shipbuilding enterprise, including the warship sector.
Scotland Office
97
Conclusion
Fourth Report - Defence in Scotland: mi…
Acknowledged
Skills policies will best support the shipbuilding industry if the UK and Scottish Governments’ approaches complement each other. For this to happen, education policymakers in Scotland will need to be able to receive clear signals about the skills needs of the defence sector, and will need routes for working together …
Government response. The UKSST, NSO and DfE welcome the signal to work collaboratively and state the UKSST is committed to ensuring its recommendations work for all UK nations, and the NSO will provide transparency on future orders via the 30 Year Cross-Government …
Scotland Office
98
Recommendation
Fourth Report - Defence in Scotland: mi…
Acknowledged
The UK Shipbuilding Skills Taskforce should have a specific objective to encourage coordination between different jurisdictions in the UK, so that a common effort can be made towards supporting shipbuilding in Scotland and other parts of the UK. Defence in Scotland: military shipbuilding 35
Government response. The UKSST, NSO and DfE welcome the signal to work collaboratively and are committed to ensuring its recommendations work for all UK nations, with the NSO providing transparency on future orders and a stable baseline of work through the 30 …
Scotland Office
2
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
The UK Government’s policy document, The UK’s Defence Contribution in the High North, adopts appropriate strategic priorities for the region. At the same time, the geopolitics of the North Atlantic and the High North are evolving and the UK will need to be prepared to adapt its approach and commit …
Government response. The government recognized the need to adapt its approach to new security threats in the High North and committed to improving its understanding of the region and its evolving geopolitics, affirming a UK-wide strategy for any changes.
Scotland Office
6
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
Climate change is likely to lead to the opening of new sea routes due to the retreat of Arctic ice. While the overriding priority should be to minimise the effects of climate change, the UK Government must also be prepared for the likelihood that navigation via these routes will gradually …
Government response. The government response is truncated and contains no substantive content regarding the recommendation.
Scotland Office
17
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
Scotland’s geography means it will continue to play an important role in meeting UK and NATO defence and security objectives in the North Atlantic and the High North. This means that, should the situation in the region change, Scotland could become home to a larger defence presence. We heard that …
Government response. The government acknowledges Scotland's critical role in UK defence and states it regularly reviews its defence posture across the UK in response to regional changes, without committing to a specific increase in presence.
Scotland Office
25
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
We heard that space-based capabilities provide numerous advantages for surveillance at high latitudes. Scotland, with its burgeoning space sector and a northerly location that is suitable for launch into polar orbits, is well-placed to take advantage of this opportunity. We were encouraged to hear that the Ministry of Defence and …
Government response. The government response is a header and contains no substantive information.
Scotland Office
26
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
We heard that drones can provide an advantage in cold weather environments, but that not all drones were suited to operating in the extreme cold and that specialised systems might be needed to operate in the High North.
Government response. The government states a Defence Uncrewed Systems (UxS) Strategy is in the final stages of approval, which will ensure UK UxSs are developed to meet challenges across all operating environments, including extreme cold.
Scotland Office
27
Conclusion
Seventh Report - Defence in Scotland: t…
Acknowledged
As part of the review into cold-weather capability recommended above, the UK Government should consider what contribution a) drones and b) space technology should make to meeting defence and security objectives in the North Atlantic and the High North. Its conclusions should be published as part of that report, before …
Government response. The government details its National Space Strategy, £50 million funding for UK space markets including Scottish launches, and the upcoming Defence Uncrewed Systems (UxS) Strategy which aims to ensure UxS meet challenges in all operating environments.
Scotland Office