16 Jul 2018

ADS welcomes Dunne Review into defence spending

Industry trade body ADS has welcomed an independent review exploring the role of the defence sector in securing UK prosperity.

The review, commissioned by Defence Secretary Gavin Williamson and led by former Defence Procurement Minister Philip Dunne, found that defence was vital not only to national security but also our nation’s economy.

“Defence has made a number of important steps in meeting its prosperity objective,” said Dunne. “It makes a major contribution to our economic well-being, with 500,000 people working directly and indirectly in Defence and over 25,500 apprentices developing skills. In several local communities Defence is one of the leading providers of high skilled jobs.”

Crucially, these findings will underpin future proposals for reform to be drafted under the Modernising Defence Programme. Recommendations include additional research into large-scale procurement and the effect on national prosperity; establishing stronger relationships with defence sector suppliers; and considering how UK institutions can be given greater entrepreneurial freedoms.

“The UK benefits from a world leading defence sector worth £22 billion a year to our economy and generates £7 billion in vital high value exports,” said ADS Chief Executive Paul Everitt. “Philip Dunne’s review demonstrates the wider economic, industrial and social benefits flowing from the Ministry of Defence’s procurement of equipment, services and support.

“It is important Government and industry work in partnership to deliver the capabilities required to meet current and future security threats. Philip Dunne’s recommendations will help to build a stronger relationship able to respond more quickly and to sustain a diverse and dynamic industrial base.

“Industry will expect to see the MOD respond to the detailed recommendations’ set out in the review and then to provide a regular update as they take forward this important work.”

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