Helen Maguire

It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate the hon. Member for Newton Aycliffe and Spennymoor (Alan Strickland) on securing this important debate. SMEs are the backbone of the UK economy and a vital part of our defence industry. They bring agility, innovation and high-quality jobs to communities across the country. Yet despite their immense potential, SMEs face significant barriers to fully contributing to our national defence procurement. There is a real and long-standing problem across the MOD’s defence procurement system: it is beset by inefficiencies, including delays, overspends and rigid processes. Liberal Democrats believe it is time for a fresh, ambitious approach to tackle those challenges. Our plan focuses on flexibility, accountability and long-term strategy. We would replace the current rigid system of defence reviews with a more flexible system of continuous reviews of security threats and evolution of defence plans. That would enable procurement to evolve in response to emerging security threats and rapidly advancing technologies. Further, we would integrate defence procurement into a comprehensive industrial strategy. That would ensure a reliable pipeline of equipment procurement, safeguard jobs and skills, and promote UK-based businesses. Collaboration with NATO and European partners is key to developing cutting-edge technologies and ensuring interoperability. For the areas of defence where we wish to maintain our sovereign capabilities, we must achieve that through greater collaboration with domestic SMEs. The survival of SMEs, such as small technology businesses, is dependent on their ability to develop and deploy innovative products at extraordinary speed. They are configured for agility, fast-paced decision making and recruitment of high-value talent. By contrast, Government organisations, including the MOD, operate within more complex mandates and constrained budgets. It is neither realistic nor efficient for the Government to attempt to replicate the private sector’s pace of innovation. The MOD must improve its procurement processes to leverage the agility of SMEs.