GovWire

Good evening. Let me begin by thanking Kevin and his team at ADS for hosting this splendid event and for their work in promoting an industry that is the foundation for our way of life.

ADS is going from strength to strength, with a double digit increase in your membership last year.

You represent a commitment to innovation and excellence that are hallmarks of the British business spirit.

Yours is an industry which proves that we are still at heart a nation of makers and inventors. I know recent times havent been easy. And as Defence Secretary, I am grateful to you all.

This event brings us together from across the UK, across the industry and across the political divide.

I welcome this because defence policy and procurement commitments reach beyond political cycles.

I believe Im the first Defence Secretary whos spoken at this dinner, and tonight, you have two for the price of one with me as the warmup act for Penny Mourdants after dinner speech.

Penny is someone with a lifelong connection and commitment to our armed forces, who rose to become the first woman ever to hold the role of Defence Secretary.

Ive had the privilege of six months in the role, part of a government taking on profound challenges in our economy, our public finances and our national security.

Yet, as a new government, weve already:

• Stepped up and speeded up support for Ukraine
• Increased defence spending by nearly 3 billion
• Launched a first of its kind Strategic Defence Review
• Given service personnel the largest pay rise in over 20 years and still dealt with a multi-billion in-year deficit
• Signed the landmark Trinity House Agreement with Germany
• Secured a huge deal to buy back over 36,000 military homes to improve forces housing and save taxpayers billions
• Set new targets to tackle the recruitment crisis
• Begun a transformational MOD reform programme
• And got the Armed Forces Commissioner Bill through the House of Commons to improve service life.

The point I want to make is that this is a new government that is delivering for defence.

Something which I was able to underline last Friday at Rolls Royce, announcing a major new contract over 8 years, which will boost British jobs, business and national security.

Theres incredible work being done there in Derby, by an incredible team, some of whom are here this evening.

Its a big investment, but behind the numbers are 200 apprentices a year who now feel they have a future.

And suppliers 92 per cent of which are British based who now feel like have certainty.

What really struck me and it happens every time I visit a defence site is the deep sense of pride and purpose.

Defence workers are right to feel that way. Their efforts keep us all safe.

And as an industry, you also invest huge sums in research and development. One of the great strengths of the defence industry is that you force us to reach for the future.

Down the years, youve been responsible for some of the most significant innovations in history. Designed for times of war but which often produce lasting benefits for wider society well beyond the battlefield.

As a nation, were good and rightly so at taking pride in the professionalism of our soldiers, sailors and aviators.

But we know that that they are only as effective as the industry which equips them.

We must be better at celebrating the role of the coders, programmers, scientists and engineers who provide our forces with the tools they need to protect us.

Its why I want us to not only change the way we work with the defence industry, but also change the way we see the defence industry.

On the way we work with industry, I hope the last few months serve as a glimpse of type of partnership we want to forge.

From industry involvement for the first time ever in our war gaming, to the creation of the new Defence Industrial Joint Council.

And on the way we see industry, we know we have much to do.

Right now, theres growing security concerns for defence firms at university careers, you attend to offer young people a route to a better life.

Youre facing harassment and intimidation, forced to cancel events on campus. This is wrong.

This attitude takes for granted the privileged position we enjoy in Britain to live in freedom and security security our defence industry guarantees.

So, today alongside the Business and Education Secretaries Ive written to Universities UK for assurances about your safety on campuses.

Were also seeing defence firms ranked alongside tobacco and gambling in Environmental, Social and Governance audits. And pension funds divest from you.

I have no doubt the intentions arewell-meaning.But theyrefundamentally flawed.

We dont stop wars by boycotting our defence industry.

We stop wars by backing it.

Lets not forget that national security is a pre-condition for economic security, investor confidence and social stability.

I will always be a fierce advocate for you in the Department, to wider government, to the City, to the British public and to whoever needs to hear it.

My challenge to you as an industry is to be louder and confident about your role.

As my friend Jonny Reynolds said to the Presidents Reception earlier:

You are exceptional in your importance in helping to safeguard our national security and our way of life.

But you are also exceptional in your contribution to our economy. Nearly half a million well paid jobs are directly owed to aerospace, defence, security and space sectors.

To meet the challenges of this new era of threats, youve seen the direction we want to take with our Defence Industrial Strategy Statement of Intent.

And let me thank everyone whos shared their insights so far in submissions to both our industrial strategy, and SDR consultations.

I know for some our Statement of Intent may have been met with a degree of scepticism. Youve been here before I get that

New government, new ideas.

But old habits die hard and entrenched interests dig in.

Previous industrial strategies have produced policies many of them good but there wasnt the plan, the structures and the relentless attention to reform needed to make change happen.

So, why will this be different?

First, it has to be different.

The war in Ukraine confronts us with the deep truth that when a country faces conflict or is forced to fight, its armed forces are only as strong as the industry which stands behind them

That innovation and production capacity is a major part of our nations and our alliances deterrence.

And that industrys constant purpose is to give the nations war fighters the advantage over our adversaries.

The last Defence Industrial Strategy was published in 2021, a year before Putin shattered the peace in Europe.

Ours will hardwire in these lessons and so too will the Strategic Defence Review.

Second, Im driving deep reform to defence.

It doesnt make news headlines, but its an essential foundation for implementing both the SDR and Defence Industrial Strategy.

For industry, it means youll be brought in earlier to the conversation on how we should fight

Well ask you how you can help solve our problems rather than giving you a requirement to deliver.

Youll also see the creation of a new role, the National Armaments Director, soon-to-be one of the most senior roles in UK Defence, sitting alongside the Chief of the Defence Staff and Permanent Secretary.

Their responsibilities will include:

• Repairing a broken procurement system
• Ensuring our armed forces have what they need to fulfil their duty of protecting our nation
• And championing your industry at home and abroad.

Third, defence is part of our bigger British drive for growth the governments number one mission.

The Chancellor is speaking tomorrow about how we are going to meet this challenge.

But the message I want to reinforce is that defence is an engine for driving economic growth.

Fourth, weve proved we can do it by supporting Ukraine through Taskforce KINDRED and HIRST.

From the onset, when it took 287 days after Putin invaded to sign contracts for new NLAWs

to today, when weve created industrial bases for new capabilities virtually from scratch

Supplying at scale one of the most effective drone systems in Ukraine.

Restarted artillery barrel manufacturing in the UK to deliver hundreds to the front line.

Enhancing our own capabilities through Stormer and Starstreakwhile Gravehawk, Snapper and Wasp have all been developed with breathtaking speed.

I dont just want this to be the governments new Defence Industrial Strategy, it needs to be a national endeavour private and public SMEs and primes innovators and educators trade associations and trade unions

All creating a defence industry which is better and more integrated

One that can keep our armed forces equipped and innovating at wartime pace, ahead of our adversaries.

The Shadow Defence Secretary is familiar with the challenges.

I know he will play his part in holding us to account.

And I trust he and his Party will play their part in backing reforms that strengthen our countrys defence and i

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