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It鈥檚 a really important time to be hosting DSEI.

We鈥檝e recently published our Defence Command Paper Refresh.

We鈥檝e got a new Defence Secretary and the international environment is more complex聽and dangerous than ever before.

Yet the companies in this room, as the聽strap line of this great exhibition puts it, are powering progress.

So first I want to applaud all the fantastic聽firms behind the firepower. You are a Defence capability in your own right.

And in the past eighteen months you鈥檝e been at the forefront聽of support for Ukraine.

Delivering the vital capabilities needed to push back the merciless Russian invader.

Whether state-of-the-art missiles or hundreds of thousands of rounds munitions.

But, and this is an issue that is consistently raised with my constituents and parliamentary colleagues, just as we do that, we must make sure we continue ramping up our sovereign UK munition production.

So I鈥檓 pleased to say that earlier today we announced a 拢130 million contract which finalises an order totalling 拢410 million which will significantly increase the production of critical defence stocks of 155mm artillery stocks, 30mm medium calibre rounds and 5.56mm ammunition.

As well as bolstering the British Army鈥檚 heavy munitions stockpile, they will enhance the Army鈥檚 latest weapons systems and satisfy the increased demand for small arms ammunition.

This isn鈥檛 just good news for our capability.

As a result of this 拢410 million contract, an additional machining line will be set up in Washington, in Tyne and Wear and a new explosive filling facility will be established at Glascoed in South Wales, which I look forward to visiting very soon, all in all, creating hundreds of new jobs across the United Kingdom.

It鈥檚 yet another example and reminder that the contribution of our Defence sector to our nation is as much about prosperity as it is security.

In fact, last year, as I said in Oral Questions yesterday, this sector聽supported more than 200,000 British jobs directly and聽indirectly.

Not to mention聽tens of thousands of apprentices learning the skills for the future.

And together Defence binds our Union. Whether it鈥檚 frigates in Scotland. State-of-the-art satellites in Northern Ireland.聽AJAX vehicles in Wales or Typhoons in England. In truth, once you add in supply chains, British-made really does mean across the whole country, like the Type 45, made in Shipyards in Glasgow and Portsmouth.

So I began by thanking our industry colleagues in general but I want thank our superlative SMEs in particular.

Some of whom I鈥檝e already had the pleasure to engage with on their stand. I was a founder of an SME myself before I came into Parliament, so I know how hard it can be to get that initial breakthrough.

But just last Tuesday at MSPO, Poland鈥檚 equivalent of DSEI, I met a huge range of Defence SMEs who were successfully exporting around the world and I look forward to meeting many more on the stands in London this week.

Ladies and Gentleman, as you follow the discovery trails that criss-cross this exhibition, you鈥檒l be guided by past聽masters in subwave聽and聽wireless communication, machine learning and medical devices,聽autonomous聽systems and聽Deep Adaptive聽Intelligence to name but a few.

Proof positive that Britain isn鈥檛 just world class at developing platforms but brilliant at engineering the stuff under the bonnet, as we say. The stuff that gets the show on the road.

And the fact is聽if we鈥檙e going to respond to the pace of change we鈥檙e seeing in Ukraine, where new technologies are being adapted in a matter of weeks, we鈥檙e聽going to need this sort of innovation.

Sourcing聽the聽拢100 solutions that can stop the 拢100聽million threats in its聽track.

Exploiting聽novel technologies.

Adopting, in particular, more agile acquisition processes. A particular priority for me given my ministerial responsibilities.

And upgrading聽weapons systems, as we say, on the fly.

And perhaps in particular, accepting聽the 80 per cent solution is better than a 100 per cent solution delivered too late to make a difference.

That鈥檚 why I am happy to announce at DSEI today that we will be bringing forward an Uncrewed Systems Strategy in the coming months. It鈥檚 hugely important. It will help accelerate UK Armed Forces鈥� access to uncrewed systems and rapidly equipping them with innovative technology across air, sea and land.

At the same time, we must do more to tap into our SME talent base.

Our recent Defence Command Paper Refresh 鈥� backed up by 拢11 billion of additional investment into defence over the next five years - outlined our intentions.

First, we鈥檒l be listening more. Since becoming Defence Minister, I鈥檝e made it a top priority to engage UK Defence SMEs as much as possible. Holding my first SME forum in Northern Ireland at the start of Armed Forces week and the next one in Wales to be held later this month.

And I know from feedback from SMEs that one of their major causes of concern is environmental, social and governance rules. ESG, as we call it, ESG rules aren鈥檛 bad, per say, but have been applied wholly, misguidedly in relation to defence. Penalising Defence companies聽in a multitude of ways - from facing more expensive finance to being denied basic banking facilities.聽This comes from Northern Ireland, my first SME forum company there told me they鈥檇 been denied a current account because they operated in Defence.

So you only need to look around to appreciate that Defence isn鈥檛 the enemy. The聽sector pays back double 鈥� it creates jobs and keeps us safe.

It benefits Britain.

I鈥檝e said what SMEs聽don鈥檛 want. But what they do聽want is to be given the respect they聽deserve. Because this is a good, moral cause in here, we are securing peace, defending our nation and our allies.

So a second key aspect of the Command Paper involves聽identifying the sub-contractors and SMEs that are of strategic importance to Defence and bringing them closer into the fold.

We鈥檒l be recognising the importance of these companies by involving them systematically through the Defence Suppliers Forum and by聽launching a new supplier development programme.

These initiatives will make聽it easier for UK-based SMEs - inside the Defence sector or outside it 鈥� to聽participate in MOD projects. They鈥檒l have more than a foot in the door. They鈥檒l have a seat at the table.

Finally, we鈥檙e聽helping great British companies small and large by going big on exports.

Given we鈥檙e here at Excel at DSEI I don鈥檛 need to make the case that the UK is聽a major defence exporter. Last year we sold 拢14 billion worth of defence and security kit. But with the skill and talent at our disposal, I鈥檓 convinced we can do even better.

So we鈥檙e adopting an activist approach. Reinvigorating聽our whole of government response.聽Re-establishing a Defence Exports Inter-Ministerial Group 鈥� uniting Defence and Trade at the highest levels and driving change聽forward.

And we鈥檙e going to be unapologetic聽about the benefits of exports. It鈥檚 not Defence鈥檚 awkward cousin. Exports enhance industry, our economy and our diplomacy too.

But actually, most important of all, if replenishment is an issue, that means we need a demand signal and the biggest demand signal you can have, the better, and that means aggregate demand being bigger and that means UK demand, and exports from UK companies. We simply don鈥檛 have a big enough market otherwise to ensure we get that level of supply.

So, in future, exports won鈥檛 be a Defence after-thought but written into our acquisition DNA.

We聽will consider聽market opportunities at an earlier stage 鈥� as the Defence Command Paper Refresh said 鈥� we will make exportability integral to acquisition from the outset whilst intensifying support to vital export campaigns and inspired innovative companies.
We will utilise our UK Defence and Security Exports global market knowledge to share data across聽Whitehall.聽

And we聽will聽start to consider new projects鈥� value to our partners worldwide, as well as for our own economic needs.

Above all, we will聽look beyond the聽mere the transactional.聽The nations I speak to are asking for deeper, more meaningful bilateral partnerships. Partnerships that support capabilities through life and help develop smarter and leaner industrial bases in key聽regions.

And the UK has an amazing amount聽to offer. If you look around us today, there are a thousand and one reasons to partner with Britain. World class capabilities. World class companies. World class skills. We鈥檙e a nation that聽does what it says and is trusted around the world.

Take AUKUS. Our partnership with Australia and the US 鈥� already two years old - that鈥檚 giving us much more than next generation nuclear submarines but a massively enhanced industrial base. Or consider GCAP where we鈥檙e working with Japan and Italy - not just to develop a future fighter but unleash a revolution in advanced manufacturing.

I want to help more of the countries that need us most. So today I am聽announcing the creation of聽a new coordination hub called the Partnerships Office for Strategic Defence Exports.

Drawing cross-Whitehall and industrial expertise together to prioritise and resource export opportunities. It will聽oversee the delivery of our brand new, business-backing, brand-Britain, Government-to-Government offer: UK Defence Partnerships.

Defence Partnerships will be nation-to-nation, with exports at their core but they will use聽this foundation of trust to bolster聽bilateral collaboration whether beefing up joint聽industrial capacity, integrating聽supply chains or cooperating more closely on critical mineral access.

Our great companies are powering progress. But our strategic partnerships will supercharge them.

Guaranteeing, in an ever more dangerous age, that we have what it takes to move faster, seize more opportunities, and take on an uncertain future with the confidence we need to succeed.

I鈥檝e got be frank, I鈥檝e never known more clearly, giving a speech, whether anyone can actually hear me because of the way we鈥檙e interacting but it鈥檚 been great fun and I welcome you all to DSEI 23. Thank you.