Source · Select Committees · Scottish Affairs Committee
Recommendation 65
65
Accepted
The UK defence sector, and the shipbuilding industry in particular, is dominated by a relatively...
Conclusion
The UK defence sector, and the shipbuilding industry in particular, is dominated by a relatively small number of major companies. This is partly as a result of significant rationalisation and consolidation over the years, the highly specialised nature of its work and its limited customer base. In 2021/22, 42 per cent of total MOD procurement expenditure was with top ten suppliers.102 The MOD acknowledges this and has a Defence SME Action Plan, with a target that 25 per cent of the department’s procurement spend will go directly and indirectly to SMEs in 2022.103 Vice Admiral Paul Marshall, Director General for Ships at Defence Equipment & Support, told us that at present the proportion stood at 23 per cent, but that MOD was “on track to get there by the end of the financial year.”104
Government response summary AI-generated
The MOD published the SME Action Plan in 2022, outlining commitments to increasing opportunities for SMEs and supporting the defence supply chain through initiatives such as the Defence Suppliers Portal and digital outreach.
Government Response
The government responded to this report on 6 April 2023. No passage in that response could be matched to this conclusion. Read the response document ↗