Spending Review: defence industry reaction

Land November 26, 2020

On 25th November, the Chancellor, Rishi Sunak, delivered his Spending Review for the upcoming year to the House of Commons and confirmed the Government’s £24 billion investment in defence. Here, Defence Online looks at some of reaction’s coming from those closely connected to the defence marketplace.

Commenting on the funding pledge, Rob Bassett Cross, CEO of UK software company, Adarga, said: “This is an incredibly exciting and important pledge that will enable the Defence Secretary to fulfil the pioneering approach he has set out in the Integrated Operating Concept.

“Most importantly, it will enable the MoD to leverage the UK’s world leading Data Science and Software Engineering talent, to not only help meet the nature of threats now presented in an era of persistent competition, but to benefit the security and prosperity of the UK as a whole.

Julie Heneghan, Business Unit Leader for Industry, Expleo, commented: “At Expleo, we absolutely support the Government’s decision to increase defence spending next year, with a strong focus on AI and cyber warfare.

“We’re moving toward a digital-first society, and this brings a host of new threats that we need to be able to defend ourselves against.

“Against a backdrop of increased political tensions globally, both Europe and the US are recognising the need to grow their naval forces particularly, and develop high-end capabilities.

“Particularly it comes to new platforms and technologies such as Artificial Intelligence (AI), blockchain and autonomy of both vehicles and operations to support speed and agility, there’s a clear need for innovation across the sector. The expanded budget could bring about instrumental changes in this arena.

“Implementing such complex high-tech systems and tools into a traditionally slow-moving industry won’t be easy, however, so assurance and quality management during both implementation stage and beyond will be absolutely pivotal.

Luke Hamm, CEO of R&D and IP specialists, GovGrant, reacted to the Chancellor’s commitment to R&D and levelling up the UK felt the investment didn’t go far enough: “It’s important to remember the £19 bn pledged for R&D and levelling up isn’t new money – it’s just a repeat of the existing commitment. The green industrial revolution needed to take centre stage for R&D spend post crisis, but this isn’t evident in the breakdown of how the money will be spent. For example, just £500m is to be injected in what is a global prize of vehicle battery mass production, but £6.6 bn has been put towards defence AI and ‘battle winning technologies’.

“The Chancellor’s £17million pledge to establish a new unit that ensures public sector knowledge translates to economic growth papers over the cracks. It’s proof that R&D isn’t being commercialised effectively. If businesses were making the most of their intellectual property from the get go, they would already be creating value, greater profit and driving investment.”

The Defence Secretary, Ben Wallace, said the investment would play a crucial role, not just in security but also economically. He said: “This is excellent news for Defence, and provides us with the financial certainty we need to modernise, plan for the future and adapt to the threats we face. It demonstrates the Prime Minister’s recognition of how important Defence is to our resilience and to the reputation of the United Kingdom.

“This settlement secures UK jobs and livelihoods, allows us to invest in our fantastic shipyards and aerospace industry, spreading prosperity to every corner of the UK.

“Next year represents a huge opportunity for this country, and Defence will be at the forefront of creating the jobs and business opportunities that will help us build back from the pandemic.

“Over the next few months, I will set out in more detail our ambitious agenda for Defence.”

Chief of the Defence Staff, General Sir Nick Carter, also welcomed the announcement, saying: “This multi-year settlement is very welcome for the Armed Forces. It funds a pathway to modernisation and the digital force we need for the 2030s, integrated across the domains of maritime, air, land, cyber and space.

“It allows us to adapt in the near-term to deter the range of complex threats we face. It secures the defence of our country, gives meaning to the vision of Global Britain, and sends a powerful message to our allies and opponents.”