The UK Government has reaffirmed its commitment to ensuring that small and medium-sized enterprises (SMEs) can benefit from opportunities arising from the AUKUS defence partnership.

Responding to a question in Parliament from Richard Holden, Conservative MP for Basildon and Billericay, Defence Secretary John Healey outlined the potential economic impact of the agreement.

Healey stated, “The AUKUS partnership will create new contract opportunities for hundreds of small and medium-sized firms. It will create 7,000 new jobs both in UK shipyards and across the UK supply chain.”

Holden raised concerns about the ability of UK SMEs to compete in the defence sector following tax changes implemented by the previous Conservative Government. He asked, “What impact does the Secretary of State think that the Government’s abolition of business property relief and the massive increase in national insurance will have on UK SMEs’ ability to compete in the defence sector with our AUKUS allies following the previous Government’s signing of that agreement?”

Healey acknowledged these challenges and criticised past approaches to defence procurement, stating, “It is certainly the case, as the right hon. Gentleman rightly recognises, that in government the Conservatives were too often largely blind to where British firms were based and to where the contracts that they were ready to award went.”

He contrasted this with the current Labour Government’s strategy, saying, “This Government have come into power committed not just to strengthening UK security but to boosting the UK economy. That means designing, making and buying more in Britain.”

George Allison
George has a degree in Cyber Security from Glasgow Caledonian University and has a keen interest in naval and cyber security matters and has appeared on national radio and television to discuss current events. George is on Twitter at @geoallison

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