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SPRING BUDGET COMMENT | CHARLES WOODBURN

Investing in defence keeps UK on front line of innovation

Instability across the globe has increased the importance of national security, and the defence industry is well placed to ensure it rises to the challenge

The Times


Instability in Europe, the Middle East and other parts of the world has highlighted the vital role that the defence sector plays in helping the UK government fulfil its primary responsibility — the defence and security of this country.

The work we do, from Glasgow to Portsmouth, provides our armed forces and security services with the capabilities they need to stay ahead of those who wish us harm, as they compete in an increasingly complex battlespace that stretches from the depths of the ocean out into space.

I’m immensely proud of what we do — it’s a team effort involving our workforce, trade unions, suppliers, partners and the customers we serve.

With the peace dividend era now well and truly over, it’s encouraging to see western governments increasing defence spending and recognising the need to maintain and develop a strong supply base in order to sustain and enhance critical sovereign capabilities.

The formation of strategic international alliances such as Aukus, between the United States, the UK and Australia, and the global combat air programme between the UK, Japan and Italy are bringing nations together in new ways to tackle emerging threats. We all want to see an end to the devastating conflicts in Ukraine and the Middle East, but it’s vital that policymakers learn the lessons and retain the focus on our national security for the long term.

A clear demand signal from government gives those of us in industry the confidence we need to invest, not just in our business and facilities but also in partnerships, technology, our people and communities, areas which are essential for the UK’s long-term growth.

Last year, we grew our workforce by almost 7,000 employees globally, including almost 2,500 apprentices and graduates in the UK, and we’re recruiting thousands more this year. It’s why we’re building our third skills academy to help develop generations of future talent for ourselves, our sector and the country as a whole.

And it’s not just in areas such as combat aircraft or submarines. This year, we launched the UK’s first space apprenticeship and we recently acquired Malloy Aeronautics in Berkshire, a heavy lift drone and aeronautical business that can now benefit from our global footprint and technical expertise. Nurturing great British ingenuity in this way has benefits beyond military capability and will help to keep the UK at the forefront of innovation.

Our investments in research and development are also helping to ensure the future of UK manufacturing. In Lancashire, more than 50 large companies, small and medium-sized enterprises (SMEs) and academic institutions have helped to develop our digital “Factory of the Future”, where the brightest engineers use state-of-the-art technology to research and experiment. Our learnings are shared with our suppliers, partners and customers so we can all harness transformative ways of working to build new capabilities more quickly and efficiently.

We know from programmes such as Eurofighter Typhoon that defence can have wider economic benefits. The programme supports about 20,000 jobs a year and export sales have already returned double the government’s £12 billion investment to the UK economy.

It can also be economically transformational for local communities, as we’re seeing at Barrow-in-Furness in Cumbria. More than 12,000 people — almost a third of the town’s working population — work in our shipyard delivering the Royal Navy’s Astute and Dreadnought submarines, and we’ll be recruiting another 5,000 in the coming years as we ramp up to deliver the next class of nuclear submarine, SSN-Aukus.

The growth in the business is a catalyst for further investment in road and rail links, housing, education and healthcare. Close collaboration between the town council, MPs and community groups has helped Barrow to secure additional funding to regenerate the town centre, develop new public open spaces and create a new university campus.

Across the country, there is a network of dedicated and talented people working at companies big and small — often out of sight — helping to keep us safe, while delivering economic prosperity and high-quality skills development. It’s a nationwide effort of which we should all be very proud.

Charles Woodburn is chief executive of BAE Systems, the defence company