Source · Select Committees · Scottish Affairs Committee
Recommendation 5
5
Acknowledged
Paragraph: 33
The MOD should, with the assistance of the Scotland Office, initiate a culture change process...
Recommendation
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.
Government Response 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.
Paragraph Reference:
33
Government Response
Acknowledged
HM Government
Acknowledged
MOD notes the Committee’s recommendation and welcomes further involvement from Scottish SMEs in the Defence supply chain. We will continue to champion and support Scottish Defence SMEs, in any, and all ways we can, to ensure they continue their vital role in supporting our Armed Forces. MOD has a stretching but achievable target that 25% of its procurement spend will go directly and indirectly to SMEs by the end of 2022. We are making good progress towards this goal, and in Financial Year 2020/21, the latest year for which figures are available, 23% of our procurement spend was with SMEs. The commitments that we have made in our SME Action Plan will benefit all SMEs, including those based in Scotland, by removing unnecessary barriers to their participation in our supply-chain and by improving the way that MOD and its major suppliers engage and support them.