Report Outlines Importance Of Defence To UK Prosperity

(Picture: MoD/Crown Copyright).

An independent report has revealed the importance the defence industry has on UK prosperity. 

The report was carried out by former Defence Minister Philip Dunne and revealed the Ministry of Defence is responsible for half a million jobs and the industry is worth £22 billion to the UK economy every year.

The review was commissioned by Defence Secretary Gavin Williamson MP after the launch of the Modernising Defence Programme (MDP) which aimed to strengthen the power of the UK Armed Forces.

The report details the MoD's contribution to national economic and social value across the industry in order to provide a detailed picture to inform proposals for reform into the MDP.

Last week, the government was unable to confirm whether the outcomes of the MDP would be delivered on time.

The report

Mr Dunne's review found defence is the third largest landowner in the country with 220,000 hectares, often benefiting remote and rural communities. 

The report reveals that around 500,000 people support defence across the UK.

It outlines the MoD has a turnover of £22 billion supporting 260,000 jobs, many of which are highly skilled and well-paid.

Mr Dunne's report also acknowledged that defence is a major contributor to the nation's skills and one of the largest employer of apprentices with more than 25,000 currently employed. 

The MoD's budget is almost £37 billion and contributes more than £7 billion worth of exports on average each year, according to the report.

The Ministry of Defence says they will now consider the findings of Mr Dunne’s report as work continues on the MDP.

The report also includes a number of recommendations for review, including: further research into the impact of significant procurements on national prosperity, building on the strong relationships with industry suppliers and considering how the UK’s world-leading institutions could be given greater entrepreneurial freedoms.

Mr Dunne said: “I am pleased to have been able to undertake this review and am grateful for the help of all those in and outside the Department who have contributed.

“This is the first time for some years that an independent report has sought to look at the whole impact of Defence on the UK economy, its devolved nations and regions in England.

"Defence has made a number of important steps in meeting its prosperity objective. 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.

"But there is more that can be done as Defence has to adapt to rapidly evolving technological threats, so too should it seize the opportunities to adapt and improve its own processes to help meet the challenges of the high-tech defence future.

"I look forward to seeing how the MoD responds to this report and have confirmed to the Defence Secretary that I am willing to revisit in some months’ time how the Department has considered and where it has decided to implement these ideas."

In response, Defence Secretary Gavin Williamson said: "Philip Dunne’s review shows how vital defence is, not only protecting us from global dangers and safeguarding our national prosperity, but also to our economy by creating thousands of specialist and highly-skilled jobs and creating billions in exports.

"He paints a clear picture of how defence and defence industry reaches every corner of the UK and is central to employment in so many cities and towns.

"He lays down some key challenges to consider as our Modernising Defence Programme continues to ensure defence is the best it can be in a post-Brexit Britain."

The Press Association report the review could be used by Mr Williamson in his battle to earn extra military spending.

There have long been concerns over the MoD's funding and ability to afford the MDP.

A report by the Public Accounts Committee released in May 2018 suggested the MoD does not have enough money to buy all the equipment it needs and that there an estimated affordability gap sits somewhere in the region of £4.9 billion to £20.8 billion, with a further £9.6 billion unaccounted for.

At the time, the MoD said it will review the Committee’s recommendations, with a spokesperson saying it is "committed to delivering large, complex and technologically challenging defence programmes" to give the military the very best equipment.

In response to the report, Mr Williamson said: “Philip Dunne’s review shows how vital defence is, not only protecting us from global dangers and safeguarding our national prosperity, but also to our economy by creating thousands of specialist and highly-skilled jobs and creating billions in exports.

“He paints a clear picture of how defence and defence industry reaches every corner of the UK and is central to employment in so many cities and towns.

“He lays down some key challenges to consider as our Modernising Defence Programme continues to ensure defence is the best it can be in a post-Brexit Britain.”