MPs to examine the importance and opportunities for defence manufacturing and cyber security in Wales

From Airbus to Kent Periscopes, Raytheon to Qioptiq, there are over 160 companies supporting the defence sector that are based in Wales. Wales’ defence sector is further enhanced by the Ministry of Defence’s (MOD) Defence and Electronics Components Agency (DECA), based in North Wales, which has a £0.5 billion contract with the US Department for Defense.

However, there are concerns that a decrease in investment from the MOD will erode the prominence of Wales’ defence sector. In recent years, the number of jobs and small and medium sized enterprises (SMEs) in the sector has declined and MOD spending in Wales has fallen by £300 million since 2018. The Committee is keen to examine trends in defence spending and how SMEs can benefit from available opportunities.

Over the course of the inquiry, MPs will look at how important the sector is to the Welsh economy, investigate the opportunities for growth and examine the role of the UK Government in further promoting the defence sector in Wales.

Chair's comment

Welsh Affairs Committee Chairman, Stephen Crabb, said: 

“From maintaining fighter jets to hosting one of the most advanced aircraft surveillance and intelligence systems in existence, in Wales we have a ground-breaking defence sector that is routinely punching above its weight.

“However, MOD investment in Wales has decreased, as have the numbers of jobs and SMEs in the Welsh defence sector. Over the course of our inquiry, we will be considering the future opportunities and challenges to ensure defence industries in Wales – from defence manufacturing to cyber security – thrive.

“The defence sector is a major employer and helps support local economies across our nation and it is in all our best interests to support Wales’ defence prowess.”

Terms of reference 

The Committee is inviting written submissions by Friday 5 May. These should focus on, but not be limited to:

• What are the reasons underlying the trends in MoD spending in Wales since 2019? 
• What is the MoD’s understanding of how funding flows from prime contractors to small and medium sized defence sector businesses in Wales?  
• What is the relationship between Wales-based prime contractors, Welsh academic and research bodies, and the development of new defence technologies? 
• Can Wales play a role in enhancing the UK’s defence industrial capacity? 
• Do skills and knowledge exist within Wales’ workforce to support the growth of the Welsh defence sector? 
• How might the reorganisation of Wales’ defence estate affect employment in the defence sector in Wales? 
• Will the 10% social value weighting applied to MoD procurement support the Levelling Up agenda in Wales? 

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

Image: Ministry of Defence