Defence and Security Industrial Strategy
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| Defence and Security Industrial Strategy | |
|---|---|
| Name | Defence and Security Industrial Strategy |
| Jurisdiction | United Kingdom |
| Introduced | 2018 |
| Minister | Secretary of State for Defence |
| Agency | Ministry of Defence |
| Status | Active |
Defence and Security Industrial Strategy
The Defence and Security Industrial Strategy sets out strategic guidance linking procurement, research, and industrial policy to long-term capability needs for armed forces and homeland resilience. It aligns investment planning across the Ministry of Defence, the Treasury, and strategic partners including NATO, the United States Department of Defense, and the European Defence Agency while addressing industrial base concerns that affect projects such as the Type 26 frigate, F-35 Lightning II, and the Eurofighter Typhoon. The strategy reflects lessons from conflicts and operations involving the Falklands Campaign, the Gulf War, and the International Security Assistance Force in Afghanistan.
Background and Rationale
The strategy emerged from reviews such as the 2010 Strategic Defence and Security Review and the 2015 National Security Strategy, with inputs from commissions and inquiries including the Levene Review and the Defence Committee of the House of Commons. It responded to capability shortfalls revealed during operations in Iraq and Afghanistan, to industrial consolidation exemplified by mergers between BAE Systems, Rolls-Royce, and Babcock International, and to shifting geopolitics involving Russia’s annexation of Crimea and tensions with the People's Republic of China. International frameworks such as the NATO Defence Planning Process, the Five Eyes partnership, and the Warsaw Summit contingencies shaped rationale, while export cases involving AgustaWestland and international agreements like the Joint Strike Fighter programme highlighted industrial dependencies.
Objectives and Scope
Core objectives include sustaining sovereign manufacturing capacity for platforms such as submarines influenced by the Astute class and Vanguard class, preserving skills in aerospace exemplified by work on the A400M Atlas and the Eurofighter programme, and promoting industrial competitiveness against actors like Airbus and Thales. The scope covers naval shipbuilding yards at Rosyth and Clyde, ordnance production tied to Rheinmetall and MBDA contracts, and cyber and space capabilities involving institutions such as the Satellite Applications Catapult and the Defence Science and Technology Laboratory. Strategic objectives reference interoperability requirements from the Supreme Allied Commander Europe and procurement frameworks used by the Defence Equipment and Support organisation.
Key Policies and Instruments
Policies include the implementation of an industrial participation policy akin to offsets used in international sales, a national security exemption applied to inward investment reviews led by the National Security Adviser and the Investment Security Unit, and capability development pathways modelled on Capability Management Plans used by the Strategic Command. Instruments comprise Strategic Defence and Security Reviews, Single Source Contracting mechanisms, and grant schemes administered through Innovate UK and UK Research and Innovation to support projects with partners such as Leonardo and Thales. Regulatory tools draw on the Export Control Joint Unit and legislative frameworks like the Official Secrets Act and the Defence Reform Act.
Industry Structure and Major Stakeholders
The industrial landscape spans prime contractors including BAE Systems, Rolls-Royce, GKN Aerospace, and Babcock International, integrators such as Lockheed Martin and Northrop Grumman, and specialist SMEs across supply chains exemplified by Ultra Electronics and QinetiQ. Key stakeholders encompass the Ministry of Defence, the Department for International Trade, the Cabinet Office, regional shipyards like Cammell Laird, and workforce institutions such as the Royal Navy engineering branches and the Defence Academy. International stakeholders include the European Defence Agency, the United States Navy, and industrial groups like Airbus Defence and Space, all affecting collaboration on programmes such as Carrier Strike and Joint Strike Fighter sustainment.
Research, Development, and Innovation
R&D priorities target autonomy, artificial intelligence, undersea warfare technologies influenced by the Seawolf project lineage, and materials science relevant to the Tempest fighter concept. Research hubs such as Cranfield University, Imperial College London, and the Defence Science and Technology Laboratory have partnerships with national research councils and corporate R&D labs at Rolls-Royce and BAE Systems. Innovation funding pathways include collaborative research contracts, challenge-led competitions with Innovate UK, and spin-outs from academic centres that interact with venture capital informed by cases like Darktrace and Reaction Engines.
Procurement, Export Controls, and Supply Chains
Procurement strategies emphasize long-term contracting to stabilize supply chains for composite structures, engines, and electronics sourced from suppliers in the United States, France, and Germany, while managing sovereign capability in submarine propulsion and missile systems such as the Spearfish torpedo and Storm Shadow. Export control processes coordinate the Export Control Joint Unit with export licensing influenced by international regimes like the Wassenaar Arrangement and the Missile Technology Control Regime. Supply chain resilience measures reference lessons from disruptions to commercial shipbuilding, semiconductor sourcing issues affecting avionics, and logistics operations comparable to those executed during Operation Telic.
Implementation, Oversight, and Outcomes
Implementation is overseen through parliamentary scrutiny by the Defence Committee, annual reporting to ministers including the Secretary of State for Defence, and performance metrics tied to the National Audit Office reviews and Infrastructure and Projects Authority gateways. Outcomes include consolidation of strategic programmes such as the Carrier Strike Group, investment commitments for submarine continuity at Barrow-in-Furness, and initiatives to grow SMEs linked to the Defence Growth Partnership and regional enterprise zones. Ongoing debates engage stakeholders from trade unions like Unite and industry bodies such as the Defence and Security Organisation over balancing export competitiveness, industrial capability, and alliance obligations.