Source · Select Committees · Defence Committee

Recommendation 71

71 Accepted

Government acknowledges need for strategic alignment with industry to improve skills and supply chain resilience.

Conclusion
In our March 2023 Report ‘Special Relationships? The US, UK and NATO’ we highlighted the issue of industrial capacity in relation to supply chain capacity and a lack of skilled workers.152 We were told by Government that: Further developing strategic alignment with industry will mean that together we can better understand long-term strategic challenges and identify solutions to issues such as the availability of critical skills, resilience within the supply chain, and productivity. We will outline how we are working more closely with industry in the upcoming Defence Command Paper Refresh.153
Government Response Summary
The government details funding for stockpiles and commits to a transformed partnership with industry, including earlier engagement and a new Integrated Procurement Model, to build a more resilient industrial base and address supply chain and skills challenges, aligning with previous commitments.
Government Response Accepted
HM Government Accepted
£1.95Bn was allocated in the 2023 Spring Budget to address long-standing challenges across the defence programme to improve our resilience, which will make us better able to respond to new threats. This funding is being used to build the department’s munitions and medical stockpiles and support a wide range of critical activity. To date investments include support to deliver a large purchase of 155mm munitions, building storm shadow stockpiles, supply chain mapping, wargaming, enhancements to a range of critical infrastructure, and medical stockpiles. In addition to these uplifts, we have placed almost £1Bn in contracts to replenish UK stocks of equipment and munitions already granted to Ukraine. Contracts have been placed to replenish UK stockpiles include Next Generation Light Anti-Tank Weapons; Starstreak High Velocity Missiles; Lightweight Multirole Missiles; Javelin missiles; Brimstone missiles; 155mm artillery rounds; and 5.56mm rifle rounds. Exact stockpile holdings are held at secret and are not releasable on the grounds of national security. However, the war in Ukraine has highlighted to the UK and allies that we all need to invest more in munitions to increase stockpile levels and ensure we have the industrial base required. In response the MOD has developed a strategy for munitions, and we continue to work with allies and partners, particularly NATO, to ensure the UK and NATO has the munitions it needs. --- On 18th July the Government published the Defence Command Paper 2023 (DCP23). The Defence Command Paper (DCP) built upon the DCP of March 2021. This mid-cycle refresh was needed given three changes in circumstance: i) the evolving threat picture–not least Russia’s invasion of Ukraine and China’s growing assertiveness–and the technological advances since 2021; ii) the increase in the MOD’s budget, now over £50 billion a year for the first time and next year we expect it to rise to around £55.6bn; iii) the publication in March 2023 of a refreshed Integrated Review that set out the Government’s new grand strategic aims and approach. DCP23 articulates a new, clear purpose for Defence: to protect the nation, and to help it prosper. It sets out how we will double-down in certain areas, such as the centrality of NATO, the importance of nuclear and the strength of our alliances and partnerships. As a leading member of NATO–the most successful military alliance in history–the UK and our Allies have a competitive advantage over our adversaries through the solidarity of 32 nations and the multiplying effect of interoperable forces. In NATO, Allies do not fight alone. It is through NATO and the UK’s wider Alliances and partnerships that the UK provides a credible defence from and deterrence to the threats the country faces. The UK can draw on the capabilities of the 32 NATO Allies and not only from our own armed forces. Through our offer to NATO, we offer the Alliance the full spectrum of defence capabilities, including by declaring our Continuous at Sea Nuclear Deterrent to the Alliance as well as our offensive cyber capabilities through the National Cyber Force. NATO has four times as many ships and three times as many submarines as Russia. The UK is the only nuclear power dedicated to supporting NATO and is key to protecting NATO’s vital Atlantic supply lines; this is a uniquely and vitally important role in the Alliance. Re-investment in our warfighting force through the lens of its contribution principally to NATO, that force still underpins our hard-power projection in the world beyond as well. Our aircraft carriers, for example, have been both committed to NATO in the last twenty-four months as well as deployed into the Indo-Pacific to contribute to other UK foreign policy aims in that region. The UK already has a significant recapitalisation programme underway across all domains. Defence has new platforms that are in service, or are coming into service, which will completely transform the Armed Forces’ capability. Through commitments made in DCP23, Defence is prioritising the things that will make those capabilities more lethal and ready, such as stockpiles, munitions, and enablers including storage facilities and our transformed partnership with industry, where we will engage much earlier in strategic conversations to create a more resilient, reliable, and adaptable industrial base. This will not only bolster UK industry and diplomatic influence, but also helps sustain Ukraine in the fight in 2024 and develops its economy beyond. This is highlighted in the new Integrated Procurement Model–a system that will see earlier expert assurance of future military programmes to ensure they will deliver for UK forces on the frontline. The reforms will look to avoid previous challenges where programmes have been over-complex, over-budget, and over time. The reforms will see greater empowerment of subject matter experts across the defence enterprise including Dstl scientists, government export leads, finance