Pressures mount on Ministry of Defence to get procurement working for digital age

The UK military is facing a £20bn black hole and depleted forces, but there is a new spirit of innovation in the arms industry, writes Robert Fox

- Robert Fox

Labour pledged in its manifesto to overhaul the business of defence, including with the appointment of a national armaments director (NAD) charged with streamlining the tendering and procurement process for services, concepts and kit. A year later, despite running the competition for more than six months and over several rounds, no suitable candidate has been appointed.

Andrew Davies, chief executive of Kier Group, was on a shortlist put forward to the prime minister for the role last month but recently withdrew, turning down a salary in the region of £650,000, including add-ons. He and his industry peers earn more than £1m.

Jeremy Quin, defence procurement minister under the previous Conservative government, is now the only candidate left in the process. But there is concern around failing to appoint someone without an industry background. The next NAD will have to have more than a working knowledge of strategic and tactical needs of the armed services, the defence industries old and new, the workings of Whitehall, and the wiles of the Westminster village.

Their job will be to control procurement, maintain the arsenal across defence and manage investment with industry, not least with the small and medium-sized enterprises (SMEs) building cutting-edge technology, from drones, aerial systems and submarines to frontline medicine, and super-computing and quantum technology.

They will control an annual equipment spend of at least £16bn, with an overall 10-year equipment and support programme costed in 2024 at more than £300bn.