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Good evening. Let me begin by thanking Kevin and his team at ADS for hosting this splendid event and for their work in promoting an industry that is the foundation for our way of life.

ADS is going from strength to strength, with a double digit increase in your membership last year.

You represent a commitment to innovation and excellence that are hallmarks of the British business spirit.

Yours is an industry which proves that we are still 鈥� at heart 鈥� a nation of makers and inventors. I know recent times haven鈥檛 been easy. And as Defence Secretary, I am grateful to you all.

This event brings us together from across the UK, across the industry and across the political divide.

I welcome this because defence policy and procurement commitments reach beyond political cycles.

I believe I鈥檓 the first Defence Secretary who鈥檚 spoken at this dinner, and tonight, you have two for the price of one with me as the warmup act for Penny Mourdant鈥檚 after dinner speech.

Penny is someone with a lifelong connection and commitment to our armed forces, who rose to become the first woman ever to hold the role of Defence Secretary.

I鈥檝e had the privilege of six months in the role, part of a government taking on profound challenges in our economy, our public finances and our national security.

Yet, as a new government, we鈥檝e already:

• Stepped up and speeded up support for Ukraine鈥�
• Increased defence spending by nearly 拢3 billion鈥�
• Launched a first of its kind Strategic Defence Review鈥�
• Given service personnel the largest pay rise in over 20 years鈥� and still dealt with a multi-billion in-year deficit鈥�
• Signed the landmark Trinity House Agreement with Germany鈥�
• Secured a huge deal to buy back over 36,000 military homes to improve forces housing and save taxpayers billions鈥�
• Set new targets to tackle the recruitment crisis鈥�
• Begun a transformational MOD reform programme鈥�
• And got the Armed Forces Commissioner Bill through the House of Commons to improve service life.

The point I want to make is that this is a new government that is delivering for defence.

Something which I was able to underline last Friday at Rolls Royce, announcing a major new contract over 8 years, which will boost British jobs, business and national security.

There鈥檚 incredible work being done there in Derby, by an incredible team, some of whom are here this evening.

It鈥檚 a big investment, but behind the numbers are 200 apprentices a year who now feel they have a future.聽聽

And suppliers 鈥� 92 per cent of which are British based 鈥� who now feel like have certainty.聽

What really struck me 鈥� and it happens every time I visit a defence site 鈥� is the deep sense of pride and purpose.

Defence workers are right to feel that way. Their efforts keep us all safe.

And as an industry, you also invest huge sums in research and development. One of the great strengths of the defence industry is that you force us to reach for the future.

Down the years, you鈥檝e been responsible for some of the most significant innovations in history. Designed for times of war but which often produce lasting benefits for wider society well beyond the battlefield.

As a nation, we鈥檙e good 鈥� and rightly so 鈥� at taking pride in the professionalism of our soldiers, sailors and aviators.

But we know that that they are only as effective as the industry which equips them.

We must be better at celebrating the role of the coders, programmers, scientists and engineers who provide our forces with the tools they need to protect us.

It鈥檚 why I want us to not only change the way we work with the defence industry, but also change the way we see the defence industry.

On the way we work with industry, I hope the last few months serve as a glimpse of type of partnership we want to forge.

From industry involvement 鈥� for the first time ever 鈥� in our war gaming, to the creation of the new Defence Industrial Joint Council.聽

And on the way we see industry, we know we have much to do.

Right now, there鈥檚 growing security concerns for defence firms at university careers, you attend to offer young people a route to a better life.

You鈥檙e facing harassment and intimidation, forced to cancel events on campus. This is wrong.

This attitude takes for granted the privileged position we enjoy in Britain 鈥� to live in freedom and security鈥� security our defence industry guarantees.聽

So, today 鈥� alongside the Business and Education Secretaries 鈥� I鈥檝e written to Universities UK for assurances about your safety on campuses.聽

We鈥檙e also seeing defence firms ranked alongside tobacco and gambling in Environmental, Social and Governance audits. And pension funds divest from you.

I have no doubt the intentions are聽well-meaning.聽But they鈥檙e聽fundamentally flawed.

We don鈥檛 stop wars by boycotting our defence industry.

We stop wars by backing it.

Let鈥檚 not forget that national security is a pre-condition for economic security, investor confidence and social stability.聽

I will always be a fierce advocate for you in the Department, to wider government, to the City, to the British public and to whoever needs to hear it.

My challenge to you 鈥� as an industry 鈥� is to be louder and confident about your role.

As my friend 鈥� Jonny Reynolds鈥� said to the President鈥檚 Reception earlier:

鈥淵ou are exceptional in your importance鈥� in helping to safeguard our national security and our way of life.

鈥淏ut you are also exceptional in your contribution to our economy. Nearly half a million well paid jobs are directly owed to aerospace, defence, security and space sectors.鈥�

To meet the challenges of this new era of threats, you鈥檝e seen the direction we want to take with our Defence Industrial Strategy Statement of Intent.

And let me thank everyone who鈥檚 shared their insights so far in submissions to both our industrial strategy, and SDR consultations.聽

I know 鈥� for some 鈥� our Statement of Intent may have been met with a degree of scepticism. You鈥檝e been here before鈥� I get that鈥�

New government, new ideas.

But old habits die hard and entrenched interests dig in.

Previous industrial strategies have produced policies 鈥� many of them good 鈥� but there wasn鈥檛 the plan, the structures and the relentless attention to reform needed to make change happen.

So, why will this be different?

First, it has to be different.聽

The war in Ukraine confronts us with the deep truth that when a country faces conflict or is forced to fight, its armed forces are only as strong as the industry which stands behind them鈥�

That innovation and production capacity is a major part of our nation鈥檚 鈥� and our alliance鈥檚 鈥� deterrence.

And that industry鈥檚 constant purpose is to give the nation鈥檚 war fighters the advantage over our adversaries.

The last Defence Industrial Strategy was published in 2021, a year before Putin shattered the peace in Europe.

Ours will hardwire in these lessons and so too will the Strategic Defence Review.

Second, I鈥檓 driving deep reform to defence.

It doesn鈥檛 make news headlines, but it鈥檚 an essential foundation for implementing both the SDR and Defence Industrial Strategy.

For industry, it means you鈥檒l be brought in earlier to the conversation on how we should fight鈥�

We鈥檒l ask you how you can help solve our problems rather than giving you a requirement to deliver.

You鈥檒l also see the creation of a new role, the National Armaments Director, soon-to-be one of the most senior roles in UK Defence, sitting alongside the Chief of the Defence Staff and Permanent Secretary.

Their responsibilities will include:

• Repairing a broken procurement system鈥�
• Ensuring our armed forces have what they need to fulfil their duty of protecting our nation鈥�
• And championing your industry at home and abroad.

Third, defence is part of our bigger British drive for growth 鈥� the government鈥檚 number one mission.

The Chancellor is speaking tomorrow about how we are going to meet this challenge.

But the message I want to reinforce is that defence is an engine for driving economic growth.

Fourth, we鈥檝e proved we can do it by supporting Ukraine through Taskforce KINDRED and HIRST.

From the onset, when it took 287 days after Putin invaded to sign contracts for new NLAWs鈥�

鈥� to today, when we鈥檝e created industrial bases for new capabilities 鈥� virtually from scratch鈥�

Supplying 鈥� at scale 鈥� one of the most effective drone systems in Ukraine.

Restarted artillery barrel manufacturing in the UK to deliver hundreds to the front line.

Enhancing our own capabilities through Stormer and Starstreak鈥�while Gravehawk, Snapper and Wasp have all been developed with breathtaking speed.

I don鈥檛 just want this to be the government鈥檚 new Defence Industrial Strategy, it needs to be a national endeavour鈥� private and public鈥� SMEs and primes鈥� innovators and educators鈥� trade associations and trade unions鈥�

All creating a defence industry which is better and more integrated鈥�

One that can keep our armed forces equipped鈥� and innovating at wartime pace, ahead of our adversaries.

The Shadow Defence Secretary is familiar with the challenges.聽

I know he will play his part in holding us to account.

And I trust he 鈥� and his Party 鈥� will play their part in backing reforms that strengthen our country鈥檚 defence and its defence industry.

This is new era of threats, demands a new era for defence.

Change is essential, not optional.

Our success rests on a new partnership with innovators, investors and industry.

Our government is determined to meet the challenge, determined to deliver for defence.

Together, we will make Britain secure at home and strong abroad.

Thank you 鈥� enjoy your evening and I look forward to working with you over the coming years.