Source · Select Committees · Defence Committee
Recommendation 131
131
Accepted
MOD recognizes importance of long-term munitions contracts and industry commitment for skills development.
Conclusion
In December 2023, the Deputy Chief of the Defence Staff (Financial and Military Capability) told us that there had been recognition of the importance of trying “to make sure that our pipeline of munitions is always on, rather than boom and bust” and that the MOD were now working with industry to secure long-term contracts. He explained that the UK Armed Forces have “shifted from what we would say in the military as ‘operating’ in various parts of the world to now ‘deterring’, but being prepared to war-fight if necessary [which] means long-term commitment to industry”.265 The Director General Strategic Enablers and Deputy CEO at Defence Equipment & Support explained that those long term commitments allowed industry to invest in skills generation: There is scaling of things in the munitions complex, where we need to build long-term pipelines. The surety of contract you talked about allows [industry] to build the skills pipelines and training academies that need to be there.266 There is a broader economic argument for investing in the skills being taught through apprenticeships and training in defence industry and the Armed Forces as they are also required in other sectors of the economy that the UK is seeking to grow. For instance, skills required in the Defence Nuclear Enterprise are also needed in the civil nuclear workforce.267 Similarly, digital skills required for defence are also of benefit to the wider UK economy.268
Government Response Summary
The government highlighted its new Integrated Procurement Model and transformed partnership with industry, which aims for earlier strategic engagement, expert assurance, and spiral development to create a resilient industrial base and align with long-term commitments.
Government Response
Accepted
HM Government
Accepted
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 experts and industry partners to challenge and shape proposals before they receive the go-ahead. Driving pace is key to the overall reforms and the concept of ‘spiral’ development will be at the forefront as new programmes are initiated, avoiding capabilities that are not adaptable to the changing environment or are overly complex and too bespoke to export.