I am grateful to my right hon. Friend for that. It shows why I have repeatedly said that we need to reform defence procurement because of the need to stay competitive with our adversaries.
I agree with the Chair of the PAC, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), and my hon. Friend the Member for Devizes (Danny Kruger), that we cannot just look at what we want to spend and at the future aspiration; we have to look at how we spend the money that we have better. That is why on 28 February I announced our new integrated procurement model, to completely overhaul our approach to acquisition. I said in my speech—and I stand by this—that the current delegated procurement model, under the Levene reforms, has created an inadvertent tendency towards over-programming: as soon as there is financial pressure on the equipment plan, such as we have had through inflation, the single services compete to get their capability on contract. By contrast, the very definition of our integrated approach is pan-defence prioritisation, as we are seeing in practice in our pending munitions plan, which will address many of the concerns of right hon. and hon. Members about getting our industry up to spec in terms of missiles and other key munitions. Let me be clear that such prioritisation would be challenging even if we went to 2.5%, such is the nature of defence.
A particular priority of our new acquisition model, as was referred to by the Chair of the Defence Committee, is spiral development: accepting 60% or 80% of requirements rather than 100% exquisite. The key to that
is ramping up our engagement with industry, so we have held far more engagement events with industry at a secret level. Just this week, for example, we have held engagement between the strategic command and industry about cyber and electronic warfare—at a secret level, because we want to empower industrial innovation.
I have also said that exports are a key part of getting our industrial base as resilient as possible. So I am delighted to confirm the overnight news that BAE Systems will partner in Australia to build its nuclear-powered submarines. This is a major moment for AUKUS, and the collective submarine-building will support 7,000 additional British jobs across the programme’s lifespan.
My right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and the hon. Member for South Shields (Mrs Lewell-Buck), who this week chaired the Sub-Committee on AI, both rightly stressed the importance of technology. To see that, one need only look at the situation in Ukraine and at the extraordinary propensity of electronic warfare, which underlines how the battle space has changed. So a key part of our system will be about learning the lessons from the frontline as rapidly as possible, as we spiral our own developments in response. We are learning those lessons. For example, as part of its drive to incorporate autonomous platforms flying alongside crewed fighters, the RAF is now progressing to procure drones to overwhelm an adversary’s electronic warfare defences. That underlines an important point: that advantage in future warfare and uncrewed combat, will not necessarily be gained by individual platforms and technologies; it will be their smart integration, across crewed and uncrewed systems, that will enable us to develop a force fit for the future. That is why I believe we need an integrated approach to procurement.
To conclude, the brief snapshot of military exercises that I have outlined today does not do justice to the breadth and reach of our armed forces. They are more than ready. They are out there, deployed all over the world, keeping us safe and defending our interests. Meanwhile, the reforms we have made to procurement will help us adapt to emerging threats and evolving technological possibilities. That is a key lesson from Ukraine and from our Defence Command Paper.
This Government will continue to back our armed forces with record levels of defence spending, an ambitious 10-year equipment plan and by forging a new partnership with industry to co-develop cutting-edge capabilities. It is a plan that will ensure that our defence industrial base is more resilient and our armed forces are better equipped. It is a comprehensive strategy for our national security, and I commend it to the House.
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