MoD overlooking smaller firms for contracts, say MPs

The Ministry of Defence is overlooking smaller companies for contracts, a committee of MPs has said.

The Scottish Affairs Committee’s report, titled Defence In Scotland: Military Landscape, said the sector is “experiencing a new era of confidence and investment”, but that the MoD tends to rely on large international prime contractors.

The committee said it had heard Scottish small and medium-sized enterprises (SMEs) find it “extremely difficult” to access the UK defence sector and that “culture change is required” to address UK disparities in spending with SMEs.

It also recommended greater collaboration with local authorities around plans to reduce the MoD’s base estate by 30% by 2040.

The report welcomed the decision to base the P8 Poseidon and E7 Wedgetail aircraft at RAF Lossiemouth in Moray, as well as to increase the proportion of the British Army north of the border.

Committee chairman Pete Wishart said: “Scotland’s contribution to UK defence is undeniable.

“Our varied Scottish defence estate, ranging from land, sea and air, is pivotal to UK security and vital to our military allies.

“It’s brilliant news that the UK Government’s increased defence spending is benefiting MoD bases and local communities in Scotland.

“Scotland’s impressive reputation in defence can be enhanced further if more Scottish SMEs are engaged by the MoD to fulfil UK defence orders.

“The overlooking of Scottish SMEs must change so that different areas of the UK can benefit and contribute to our national security and allow more local economies to thrive.”

Minister for Defence for the House of Lords Baroness Goldie said: “We are pleased this report recognises the significant and growing contribution Defence makes to Scotland.

“With critical sites including RAF Lossiemouth and HMNB Clyde, Scotland is home to some of the cornerstones of the UK’s defence, and that of our Nato allies.

“We value our strong and active engagement with industry in Scotland and the benefit we derive from the talents and skills both there and throughout the UK.

“Our commitment remains to increasing our expenditure with small and medium enterprises across the whole of the UK and we have almost doubled our yearly spend since 2016/17.”