Wes Streeting says overseas suppliers of defence contracts will need to spend the equivalent amount in the UK
Wes Streeting, the defence secretary, was on the interview round this morning, announcing a new aspect of defence procurement policy. The Ministry of Defence is now saying that, if overseas suppliers win UK defence contracts, they will be required to spend the equivalent amount in the UK.
Explaining the policy, the MoD says :
double quotation mark British workers, businesses and apprentices will benefit from major changes which will see more defence work carried out in the UK thanks to the launch of a world-leading Offsets policy.
Under the new rules, overseas companies that win significant UK defence contracts will be required to invest back into Britain, through new British jobs and apprenticeships, opening UK factories, investing in domestic suppliers, transferring technology and innovation know-how.
This means contracts worth over £50m will be considered for offsets. The contractors will be required to deliver such benefits to the UK that could reach the same value as the contract, for example a £100m contract could see new jobs, facilities, or skills training up to the same £100m value in the UK.
The government is prioritising buying British defence contracts wherever possible. Where it must buy defence equipment from overseas, this new approach will ensure British workers and businesses still benefit.
John Healey, the chancellor, and Streeting are formally announcing this on a visit to BAE Systems Scotstoun in Glasgow today.
The MoD says countries like Poland, Norway and the Netherlands use similar offset policies. Further details of how this will work are set out in an offset policy paper published today.
double quotation mark Every pound we invest in defence should be judged by what it does for Britain. That’s why we are backing British by buying British wherever we can.
Even when that is not possible, we are acting to ensure that any investment brings jobs, skills and investment back home, strengthening our national security by boosting our domestic industry.
In the past, the conventional globalist, free market approach to defence procurement operated on the basis that cost and quality were all that mattered and that, if a foreign firm could supply kit better and more cheaply than anyone else, that was enough. But the US is not the only country that has become protectionist in recent years, and this is a good example of Europe prioritising local employment in government procurement.
In his statement ahead of the devolution summit in Glasgow today, Andy Burnham made it clear that he is interested in transferring more power from Edinburgh to Glasgow. (See 9.11am .) But John Swinney , the Scottish first minister, would rather talk about devolving further powers from London to Edinburgh. He issued this statement ahead of the meeting.
double quotation mark The prime minister has made devolution a central focus for his government. However the UK government must ensure that any devolution proposals respect devolution in Scotland. That means working with the Scottish government.
The Scottish government has put forward substantive proposals to the UK government on areas where further devolution would help grow Scotland’s economy and I will press the prime minister, and his government, to work with us to deliver those proposals.
The SNP wants Scotland to be fully independent (the ultimate version of devolution). But, pending that, it is also calling for the Scottish parliament to have power over policy areas currently reserved to London. Greater control over taxation, immigration, employment law and energy policy are particular priorities.
Andy Burnham has admitted his first budget as prime minister was not as radical as he would have liked because of the economic uncertainty facing the country, Kiran Stacey reports.
Good morning. Andy Burnham is in Glasgow today for a meeting with the leaders from Scotland and Wales and he says he wants to use it to talk about “the next stage of devolution”. According to the overnight briefing from No 10 , he is less interested in giving more powers to the devolved parliaments and more interested in promoting “regional empowerment” in their countries.
In his pre-summit statement, Burnham says:
double quotation mark Through No 10 North, we are rewiring the state. I want to make sure every city and region in the United Kingdom is part of that.
Today I’ll be making an offer to the governments of each nation. Put politics aside and work in partnership with the UK government to develop models of regional empowerment that ensure communities can use their own strengths to unlock their potential.
This is the next stage of devolution. Together, there is no limit to what we can achieve.
Burnham is speaking at a time when Scotland, Wales and Northern Ireland have since the May elections (when Plaid Cymru won in Wales) for the first time had first ministers from nationalist parties that want to break away from the UK. John Swinney, the Scottish first minister, and Rhun ap Iorwerth, the Welsh first minister, will be at the meeting today. But Michelle O’Neill, the Sinn Féin first minister from Northern Ireland won’t be there. She holds power jointly with a DUP deputy, and both of them have to stay away because the DUP has vetoed their attendance due to an ongoing row about Drumcree. Some officials will attend instead.
Downing Street says at today’s meeting Burnham “will say that devolution by default shouldn’t be about the transfer of powers from one parliament to another but should go deeper within nations to empower all places and communities who know best what they need to grow and access opportunities.”
Morning: Andy Burnham chairs a meeting of the national economic council in Glasgow.
11.30am: Downing Street holds a lobby briefing.
Afternoon (UK time) : Ed Miliband is attending a meeting of G20 foreign ministers in Atlanta in the US.
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