Source · Select Committees · Scottish Affairs Committee
Recommendation 3
3
Accepted
Paragraph: 19
In its response to this report, the UK Government should set out what work it...
Recommendation
In its response to this report, the UK Government should set out what work it did, in preparing the National Shipbuilding Strategy Refresh, to estimate and measure the benefits of procuring ships domestically for the Scottish economy and the wider UK economy, and the revenue generated for the Scottish Government and HM Treasury. The response should also set out what conclusions were drawn from this work.
Government Response Summary
The Government stated they seek to account for the wider benefits from shipbuilding procurement programmes through the application of the Social Value model. The National Shipbuilding Office (NSO) and the MOD have undertaken a series of regional assessments to better understand the economic footprint of the UK shipbuilding industry.
Paragraph Reference:
19
Government Response
Accepted
HM Government
Accepted
2 & 3: The Government seeks to account for the wider benefits from shipbuilding procurement programmes through the application of the Social Value model. Specific criteria will vary for each programme, but alongside delivering the capability to time, cost and specification, we value themes such as incentivising investment, tackling economic inequality and supporting local communities. Additionally, the National Shipbuilding Office (NSO) and the MOD have undertaken a series of regional assessments to better understand the economic footprint of the UK shipbuilding industry, which in turn has helped inform the Government’s knowledge of the economic impacts of building military vessels domestically. Since its establishment, the NSO has also worked with MOD procurement teams to ensure economic benefits are considered whilst determining the procurement approach for each class of naval ship. Lastly, His Majesty’s Treasury is responsible for determining how much revenue it wishes to raise through taxation and borrowing. This is done separately from, and in advance of, individual departmental spending decisions. Departments are then funded to maximise social welfare for the Government. Nonetheless, the MOD recognises that BAE Systems and Babcock are major employers in Scotland and therefore contribute significant value at both regional and national levels.