Extracts from Defence Questions (Commons) - July 9

Major defence companies are clearly deeply concerned about the effect of this Government’s Brexit policy on their operations in the UK. Rolls-Royce has started to move some functions to Germany while the chief executive of Airbus has said that the Government have 

“no clue on how to execute Brexit without severe harm.”

Given that the man who was meant to be leading the UK’s approach to Brexit has now resigned because he has no confidence in his own Government’s approach, how on earth can business trust that this divided Government will deliver a Brexit deal that protects jobs and the economy?

The chief executive of Airbus made very similar comments back in January, but he would also be very pleased with the plans that were announced by the Prime Minister at the Chequers meeting. The key thing is that defence industries in the United Kingdom are confident—they have larger order books and they are winning contracts for the first time in generations in some countries. On top of that, I am also in regular discussions with defence companies in other parts of the world, which are very keen to invest in the United Kingdom.