Unity Contract

James Cartlidge Excerpts

Friday 24th January 2025 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

I thank the right hon. Lady not only for early sight of her statement, but for her kind words in recognising my contribution to delivering this deal—Unity by name and by nature. As with the Annington deal and the UK-Germany barrel-making deal, I can safely say that this deal is profoundly to the benefit of our country. While I would have dearly loved to conclude those deals while in office, it is better that such deals are delivered under any Government than not at all, and I am delighted to be responding to the statement today.

While it is unusual to have statements on a sitting Friday, I thank the Government for announcing this deal to the House today, because it speaks to its huge importance to our national interest. Before explaining why the deal is so important, may I first thank all those involved in bringing it forward: those at the Ministry of Defence and the Royal Navy, and in particular the commercial teams, who have worked so hard to iron out all the complex details needed to get it over the line, and of course Rolls-Royce itself? On that note, I thank everyone in the defence nuclear enterprise, and, as the right hon. Lady said, we give particular thanks, as we always should, to those who crew our nuclear submarines, and in particular the 24/7 continuous at-sea deterrent.

My personal experience—I am sure the right hon. Lady will have discovered this in the many international engagements in the export role that is so important to any Ministry of Defence procurement—was that Rolls-Royce was the single UK defence company, possibly only matched by BAE, that seemed to have greater success in penetrating major export markets. Visiting Raynesway last April to keep this project moving forward, I saw the sheer scale of Rolls-Royce’s commitment to apprenticeships and manufacturing excellence. That underlined how it is a domestic and international industrial success story for UK plc, and we should do everything possible to support it. The deal is economically crucial, helping sustain our sovereign defence nuclear industry, as the right hon. Lady said, and in turn sustaining thousands of skilled jobs.

I was struck, while speaking to apprentices at both Barrow and Raynesway, that of particular appeal to them was the assurance of a long-term career pathway. Today’s announcement will underwrite not just a major corporate investment, but the life plans of thousands of young people, and I wish them all well. Skills remain a challenge, given the sheer scale of the nuclear undertaking, so will the right hon. Lady update us on how she is taking forward the work of the pan-civil and defence nuclear skills taskforce, which I launched together with the then civil nuclear Minister, my hon. Friend the Member for West Aberdeenshire and Kincardine (Andrew Bowie), in August 2023?

This deal clearly builds on the good work done by the previous Conservative Government, who always backed our armed forces, our continuous at-sea nuclear deterrent and our defence industrial base, and who brought the mighty AUKUS partnership to life with the US and Australia. Can the right hon. Lady provide further detail on her very welcome confirmation that this deal will underpin AUKUS?

In talking about the economic importance of this announcement, we should also be clear about its military significance. The right hon. Lady was right to refer to the Secretary of State’s statement on Wednesday regarding the Russian spy ship Yantar and its grey zone activities in our waters and economic zone. I said in response that we stood shoulder to shoulder with the Government not just on Ukraine but in standing up to the Russian threat, which I still regard as by far the most immediate and serious in terms of the UK homeland. I urged him to lean into being more open with the country about the Russian threat, while of course protecting operational security, so that the country can understand the nature of the treat and what it will inevitably mean for defence expenditure.

The strategic defence review is expected in the spring, and I hope that it will be published as early as possible—ideally in March—but whenever it is, it appears likely that there will be a particular focus on homeland security and missile defence. That is entirely right, but we must all understand a fact of military reality: there is one UK capability that matters above all in the Kremlin, and that is our continuous at-sea deterrent. There is a strong argument for reinforcing our conventional missile defence capability for the UK homeland, but that is not what deters Putin from striking our cities; rather, it is our potential to retaliate. For that reason, we must continue to give absolute priority to the deterrent in our defence budget, and that budget must be urgently increased. Whatever else is announced in the SDR, I hope the right hon. Lady will confirm both that investment in our deterrent will remain central to all future plans and that we will hit 2.5% during this Parliament.

While the deterrent is inevitably a multibillion-pound undertaking, it remains a way to guarantee our security for a fraction of overall public expenditure. Today has shown that it also offers a huge economic return to the country, underpinning manufacturing excellence. As such, and given the threats that we face, it has never been more vital that we continue to strengthen our defence nuclear enterprise.

[Maria Eagle]

I find myself agreeing with a lot of what the shadow Defence Secretary said—unity, indeed. He asked about 2.5%. I think we all agree that defence spending needs to increase, and he knows well that we have just increased it by 5.9% in real terms this coming year—it is up by £2.9 billion—as a step on the way to getting to 2.5%, which is a cast-iron guarantee.

The hon. Member referred to the strategic defence review, which as he knows we said will be coming in the spring, and that is still the plan. He will have to wait a little longer to see the precise details of the threats that that identifies and, therefore, the capabilities we need to develop.

I think there is general agreement across the House about the dangers of things like the Yantar incident, which the Secretary of State spoke about on Wednesday, and we will all have noted that it was dealt with by one of our nuclear submarines. That reinforces the point that the hon. Member made about the importance of our deterrent.