⚙️ Defence Procurement: Small and Medium-sized Enterprises

• The debate focused on the role of small and medium-sized enterprises (SMEs) in UK defence procurement, highlighting the need to involve SMEs more effectively to enhance national security and economic growth.
• Alan Strickland, MP for Newton Aycliffe and Spennymoor, emphasized the changing nature of warfare, particularly noting the impact of drone technology as seen in Ukraine, and the necessity for the UK to adapt by leveraging SME innovation.
• Several MPs, including Tanmanjeet Singh Dhesi and Jim Shannon, stressed the importance of making defence contracts more accessible to SMEs to support their growth and innovation, noting bureaucratic challenges SMEs often face.
• Examples from various regions across the UK showcased the capabilities of local SMEs, such as Supacat in Devon and Tees Components, which provide precision machining for the Royal Navy.
• The debate highlighted the need for a new proactive and entrepreneurial approach to defence procurement, inspired by successful models like the United States, which spends a significant portion of its military budget directly with SMEs.
• Concerns about the current procurement system were raised, including delays, overspends, and a reliance on large prime contractors, which can sideline smaller, innovative companies.
• MPs suggested practical steps to enhance SME participation, such as reducing reliance on prime contractors, breaking large contracts into smaller, manageable parts, and simplifying contract arrangements.
• Late payments to SMEs were a significant issue raised, with Chris Evans emphasizing the necessity for legislation to enforce prompt payments to improve SME cash flow and stability.
• The new Labour Government’s commitment to include defence as a growth-driving sector in the industrial strategy was welcomed, with expectations to prioritize British businesses in procurement and involve SMEs more directly.
• The Minister for Defence Procurement, Maria Eagle, acknowledged the need for reform and the importance of learning from successful innovations during emergencies, like support for Ukraine. She committed to visiting regions to directly engage with SMEs and to consider their input for the forthcoming defence industrial strategy.
• The debate underscored a shared goal among MPs to use the ingenuity of SMEs to meet evolving global threats, promote economic growth, and enhance national defence capabilities.

The session on ‘Defence Procurement: Small and Medium-sized Enterprises’ shows a low level of disagreement among the participants. Throughout the transcript, there is a strong consensus on the importance and potential benefits of involving SMEs in defence procurement. Members from different political parties, including Labour, Liberal Democrats, Conservatives, Democratic Unionist Party (DUP), and Traditional Unionist Voice (TUV), consistently emphasized the need for increased SME participation and praised the initiatives already taken or planned by the government to support this sector. There were no significant instances of conflict or opposition; instead, the discussions were collaborative, with MPs sharing examples of successful SMEs in their constituencies and suggesting ways to further enhance SME involvement.

Examples of agreement include: - Alan Strickland (Lab) and Tanmanjeet Singh Dhesi (Lab) agreeing that defence contract opportunities should be more accessible to SMEs to support growth and innovation. - Jim Shannon (DUP) and Alan Strickland agreeing on the importance of Northern Ireland’s SMEs and their inclusion in UK defence procurement strategies. - Alison Bennett (LD) and Alan Strickland agreeing on the need to integrate emerging technologies from SMEs into the MOD’s procurement strategy. - Sharon Hodgson (Lab) and Alan Strickland agreeing that supporting SMEs can lead to the growth of larger companies, reinforcing the ‘from small acorns, great oaks grow’ principle. - The Minister for Defence Procurement and Industry (Maria Eagle) expressing a commitment to visiting various regions to engage directly with SMEs, showing support for the proposals discussed by MPs from different constituencies.

The minor point of potential disagreement is from Chris Evans (Lab/Co-op) regarding late payments to SMEs, but even this was more of a concern raised than a direct disagreement with other MPs or the government’s stance. The Minister acknowledged this issue and mentioned efforts to improve payment practices, indicating a willingness to address the concerns rather than a disagreement.

Overall, the session’s focus was on constructive discussion and collective problem-solving, with very little to no disagreement displayed.