- July 25, 2024
- Posted by: lutherpendragon
- Categories: insight, news
![](https://www.luther.co.uk/wp-content/uploads/2024/07/1024px-Red_Arrows__VC10_-_RIAT_2006_2391871653-1024x550.jpg)
The Luther Team has been busy supporting clients at the Royal International Air Tattoo and Farnborough Air Show over the past week. Associate Director Will Gray shares his thoughts on the key topic everyone was talking about: The Strategic Defence Review.
The Royal International Air Tattoo and Farnborough Air Show are milestones in the global aerospace calendar, providing industry unparalleled opportunities to engage with military and commercial customers, secure orders, and showcase technological innovations. The Prime Minister and Labour Government have been out in force, showing their commitment to national and international security, but what can we expect to see from the new regime, particularly when it comes to proposed increases in defence spending?
As my colleague Ben Frankel covered in a blog, last week saw the announcement of the Government’s Strategic Defence Review (SDR). No surprise then that a number of procurement decisions have been put on hold pending the outcome of the SDR.
According to reports, exempt from this pause is the Tempest/Global Combat Aircraft Programme (GCAP). This is proving an early test for the Defence Secretary as he comes under pressure from the Treasury which, like many, is wondering if the country can afford to spend around £15bn for Tempest and the extra F-35B Lighting IIs proposed in the 2021 Integrated Review. Defence is not the only front where the battle between political hope and economic reality is being fought, and where crucial decisions on tax and spend must be made. Tuesday’s rebellion on the two-child benefit cap illustrated another such dilemma, as do the ongoing debates around public sector pay rises.
Another pressure point on GCAP relates to the number of UK jobs the programme will sustain. The Telegraph’s Lewis Page illustrates the challenge well, for those interested in reading more, particularly given his consideration of the geopolitical context, with the Government needing to both shore up support with GCAP partners (Italy and Japan) and the US, who have contributed more than $400bn to develop the F-35 as a capability. The exemption of Tempest/GCAP from the SDR is therefore an interesting one, given the “state of the defence technological and industrial base” is a key theme within the scope of the review.
The other contribution on the SDR came from the Defence Secretary at RUSI’s Land Warfare Conference on Tuesday, his first appearance before military stakeholders since the Review’s announcement last week. The SDR’s uniqueness in being run outside of MoD Main Building was one element he emphasised, alongside an interesting framing of it being done “with defence, not to defence.”
What’s clear from the SDR’s Terms of Reference is that while the Government does have a clear idea of what it wants out of the process, there are still a number of unanswered questions, difficult decisions, and trade-offs to come. And while the consultation window, which closes at the end of September, is short, given the commitment to delivering the review in the first half of 2025, there exists a significant opportunity for industry to engage.
Photo: Tim Felce (Airwolfhound)
How can we help you?
The Luther team will be busy over the coming months supporting clients as they engage with the SDR. If you’re from an organisation wanting to engage with it, shape it and make sure your views are heard, email publicaffairs@luther.co.uk