Embracing Change and Collaboration
Good afternoon. It’s refreshing to step away from the formalities of a suit and engage in a more hands-on approach at an event like this, where the environment encourages a bit of mud and a lot of interaction. I am genuinely honoured to be participating in DVD 26 today.
I would like to extend my gratitude to Rupert, our new National Armaments Director, and his dedicated team, as well as our colleagues in the British Army, for their hard work and commitment. A special thanks is also due to the industry, which provides an impressive showcase of the British Army’s warfighting capabilities and the exciting potential for future advancements.
The integration of defence, industry, and future innovations is crucial for the successful implementation of both last year’s Strategic Defence Review and the recently released Defence Investment Plan. The land domain plays a pivotal role in the government’s initiative to rearm and reindustrialise the UK, forming a fundamental element of our national deterrence strategy.
The Industrial Sector’s Role in Defence
Within this industrial sector, the land domain not only enhances the fighting power and effectiveness of the British Army but also strengthens the narrative that defence acts as a catalyst for economic growth.
While I am expected to refer to reindustrialisation, I must emphasise that both terms—reindustrialisation and engine for growth—are accurate. By increasing our defence budget and directing more funds towards British companies, we can create more quality jobs at home, boost our industrial capacity, enhance our deterrent capabilities, and ensure that our warfighters receive the latest equipment.
The significance of the land domain cannot be overstated, as it extends beyond a single factory location in the UK. Companies engaged in this sector contribute significantly to every region across the nation, bolstering the supply chain in all corners. This narrative is often overlooked, yet it is vital for illustrating how defence contributes to the country’s reindustrialisation and meets the growing demands of increased defence spending as allocated by the Treasury.
Nationwide Impact of Defence Procurement
We can observe this impact in places like Merthyr and Oakdale, Telford, Stockport, and Newcastle, as well as through the extensive national network of suppliers. It’s encouraging to see not only large corporations but also a growing number of SMEs engaging in the defence supply chain. This exhibition serves as a platform to highlight the innovation and technology being developed, along with the talented individuals driving these advancements. Strengthening the partnership between public and private sectors is more important than ever.
As we work to reform defence procurement processes, it’s fair to acknowledge that speed has historically been a challenge. However, we are committed to accelerating these processes. I will provide examples later that illustrate how we are improving procurement speeds, enabling us to deliver more equipment swiftly and maximise the value of our increased defence spending.
Investment in Land Warfare Capabilities
I am proud of the progress made in collaboration between government and industry over the past two years. The government has implemented the largest sustained increase in defence spending since the Cold War, with the land warfare sector benefiting significantly from this boost and poised for a promising future.
Our Defence Investment Plan outlines a staggering £298 billion in spending over the next four years, which includes a suite of modernisation programmes for land warfare. This investment not only supports British industry but also equips the British Army with the necessary tools while providing opportunities for export in collaboration with our allies.
This funding model is essential for achieving the Recce Strike model, as outlined by the Chief of the General Staff (CGS). This model emphasises improved targeting, enhanced battlefield surveillance, and more effective long-range fire capabilities, ultimately upgrading the lethality of our armed forces. For instance, within the next four years, we plan to invest £190 million in short-range ballistic missiles, £400 million in cost-effective one-way attack drones, and £220 million in Project Nyx to develop advanced armed autonomous drones to operate alongside Apache helicopters.
Enhancing Lethality and Operational Capability
These initiatives are designed to elevate the effectiveness of our operations, aligning with CGS’s 20:40:40 strategy embedded in the Defence Investment Plan. They will collectively provide a more detailed understanding of the battlefield and improve our targeting efficiency.
We are committing a combined £4.4 billion to advance the Boxer, Ajax, and Challenger programmes over the next four years, alongside £370 million for Project Asgard, which has demonstrated its effectiveness in the Recce Strike concept during operations in Estonia, and will be extended to more units within the British Army.
Integrating existing capabilities, such as armoured vehicles and drones, is crucial for establishing a modern deterrence strategy in the 21st century. Our investments also include new medium helicopters from Leonardo in Yeovil, uncrewed ground vehicles, counter-drone technologies, and a successor to the Land Rover. Although the latter may not have drawn much attention, the competitive options available are promising.
Commitment to Innovation and Job Creation
Much of the procurement I oversee arises from single-source contracts, which are appropriate for high-end acquisitions of advanced British technologies. However, for a Land Rover replacement, fostering competition among various companies demonstrates a healthy market in action, and we are making strides in this area.
Over the next four years, we will invest over £19 billion in land warfare capabilities and £11 billion in weapons and ammunition. When I reflect on the state of the forces we inherited, it is clear that while they may have been underfunded, they are staffed by exceptional individuals who possess a genuine desire to renew and reinforce our military capabilities. This increased funding will facilitate the introduction of new technologies.
Highlighting Key Contracts and Innovations
Today, I am excited to announce progress on three crucial investments that are integral to the Recce Strike initiative. Firstly, we have signed contracts with three British SMEs worth £16 million for over a thousand small ISR drones, enhancing our soldiers’ tactical awareness on the battlefield.
Secondly, we are replacing the outdated Watchkeeper system and have contracted Tekever to introduce twenty-four AR5 drones into service by 2029. Together, these systems will provide a versatile mix of spy drones, equipping the Army with agile, rapidly deployable systems alongside sustained high-fidelity intelligence from the AR5.
Lastly, contracts have been awarded to MBDA and Thales to explore the development of a new beyond-line-of-sight anti-armour weapon system, a capability that the British Army has lacked since the Swingfire system was retired over three decades ago. This development has the potential to significantly enhance the striking and survival capabilities of our ground forces.
Responding to Lessons Learned
These three procurements illustrate our operational evolution in light of lessons learned from the situation in Ukraine and demonstrate our reformed procurement processes. We are emphasising collaboration and innovation to ensure our equipment is built to adapt to evolving threats and technologies, with a focus on developing sovereign capabilities to enhance our industrial resilience. Supporting UK SMEs and businesses is critical for creating and sustaining highly skilled, well-paid jobs throughout the nation.
It is paramount that we collectively convey the story of our investment and its impact on our communities. This investment not only fosters opportunities and reindustrialisation but also strengthens our deterrence and warfighting capabilities. These three priorities will be a focus for defence in the coming quarter, and you will hear the new Defence Secretary, Wes Streeting, reiterate them frequently.
Advocating for Defence Spending
We have historically been reticent to articulate the benefits of defence spending in the UK. Our task now, looking towards a decade of increasing defence expenditure, is to demonstrate how such spending creates quality jobs domestically while also enhancing national security, safeguarding the UK and our allies.
I make no apologies for allocating more of this rising budget towards British companies and workers. Although this may appear protectionist, it is a strategic choice that marks a shift from prior government policies. When taxpayers can see both security and economic benefits from increased defence spending, it enhances public support for this investment and strengthens our national defence.
Encouraging Industry Participation
This narrative is vital, and I challenge you all to share your stories as well. While I don’t want to compromise any sensitive information, I urge you to discuss how investments in your businesses and the systems utilised by the British Army contribute to international collaborations and foster opportunities and quality jobs. These narratives will reinforce the case for increased defence spending and help the public understand that there is a clear strategy in place to maintain national safety amidst rising threats.
Stories of innovation, opportunity, and procurement reform—though they may not always sound glamorous—are essential. We must highlight cutting-edge designs, advanced capabilities, and battle-winning equipment, much of which is showcased here today. We also need to convey stories of reindustrialisation that restore pride in our industrial base and communities, showcasing the success of young people within their local environments. These narratives will resonate with taxpayers, demonstrating that defence is effectively utilising their investments in the Ministry of Defence and our national security.
Strategic Investment for the Future
The three contracts I have highlighted today embody these principles. They will sustain and create jobs in SMEs across Hampshire, Surrey, and Exeter,