Source · Select Committees · Scottish Affairs Committee
Recommendation 67
67
Acknowledged
The MOD’s SME Action Plan acknowledges some of the challenges SMEs face.
Conclusion
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
Government Response 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.
Government Response
Acknowledged
HM Government
Acknowledged
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). It recognises that SMEs are at the heart of the vibrant and flexible UK defence industry, supporting a wide variety of high-quality jobs across the UK. The SME Action Plan, sets out how the MOD will further improve the engagement the MOD have with SMEs, focusing on procurement models that are easier to navigate, a recognition of the role the MOD and its major suppliers play in supporting the whole of the defence supply chain, and understanding how best to support innovation and exports for UK suppliers. The MOD also supports the Defence Suppliers Portal which offers SMEs access to view contracting opportunities as both prime contractors and sub-contractors. With the Defence Suppliers Forum SME forum, a number of SMEs and trade bodies collaborate to best inform the MOD how to support SMEs within this area. Through this forum, SME champions have been established within the range of Strategic Suppliers to encourage contracting with SMEs. As part of the overall engagement strategy, the MOD have found digital outreach (including targeted webinars) an effective platform to reach smaller business. Recent outreach activity includes presentations delivered for the Scottish Supplier Development Programme (SDP) at their virtual “Meet the buyer” events. SDP are also part of our trade association network who receive our industry communications for wider dissemination to their membership. With these initiatives, alongside the target to achieve 25% of Defence spend with SMEs to be met this year, the MOD are making in-roads into making it easier for SMEs to do business with Defence. The Department for Transport is the lead Government Department for the Regional Maritime Cluster Development Programme, including the Scottish Maritime Cluster, and they are committed to working together to delivering their shared ambitions.