Recommendation 7

HM Government Acknowledged

The Government is very clear that the MOD did not view the possible relocation of General Electric’s Rugby facility with indifference. As the then-Minister for Defence Procurement said in the House on 20 May 2019, the MOD worked hard to ensure the equipment for the Type 26 frigates continued to be made in Rugby. During the complex negotiations to secure this welcome outcome, the Department was constrained in its public statements by considerations of commercial confidentiality. This did not reflect a lack of concern. Our review of the Defence and Security Industrial Strategy (DSIS) has considered how we can take a more strategic approach to ensure the UK continues to have competitive, innovative and world-class defence and security industries that underpin national security now and in the future; drive FDI and prosperity across the Union; and contribute to strategic advantage through science and technology. The strategy seeks to ensure the UK maintains the right industrial base to meet our needs–one that delivers the assured support we need in a crisis, and is able to keep up with both the evolving global threat and the opportunities for UK prosperity and capability that new technologies and manufacturing offer. That includes being clear on what we need onshore, either as a strategic imperative or to ensure our operational independence. At the same time, the UK defence industrial base will remain open to partnership with allies and partners.