, The Society of British Aerospace Companies (SBAC) has warned that the decline in Government spending on defence is putting national security, economic stability and the future of many manufacturing jobs at risk.
The warning comes as the Government’s Defence Management Board meets on Thursday 21 February to decide on delays and possible cuts to major defence projects. This could result in workers being laid off in the industry and the loss of highly skilled jobs, hitting the country’s skills base. It would also leave the armed forces short of equipment in future despite increased demands being placed on them.
Spending on defence has fallen from 4.5 per cent of GDP in the mid 1980s to 2.3 per cent today.
Ian Godden, SBAC Chief Executive, said:
“We are very concerned that the Government is about to make short term decisions to balance their books with insufficient regard for the industrial consequences or impact on long term value for money. The Government's Defence Industrial Strategy was set up to prevent this from occurring.
“It was right to reap the peace dividend at the end of the Cold War. However, there are many, varied, threats that still face the UK and our defence spending does not match our foreign policy commitments. Other nations recognise the threats that they face and are steadily increasing the amount that they allocate to defence. We are asking our armed forces to do more with less.
“Defence is a vital part of any Government's activities, not least because British wealth is generated all over the world, not just at home. It is in danger of being neglected, leaving the country unable to influence our interests at home or overseas. The high value jobs, scientific benefits and revenue that the defence industry contributes to the UK will also be eroded f defence is not given sufficient priority.”
The Society of British Aerospace Companies (SBAC) is the UK's national trade association representing companies supplying civil air transport, aerospace defence, homeland security and space. SBAC encompasses the British Airports Group. Together with its regional partners, SBAC represents over 2,600 companies, assisting them in developing new business globally, facilitating innovation and competitiveness and providing regulatory services in technical standards and accreditation.
The UK has the world’s largest aerospace industry outside the USA. UK based aerospace activity had a turnover of more than £20bn in 2006, supporting a highly skilled workforce of over 276,000 people. It is potentially well-placed to exploit further growth in the global marketplace. Orders for the production of aircraft and engines are at record levels. Three new aircraft are produced every day and there are orders in the pipeline for more than 5,000 large aircraft and 10,000 engines.
Society of British Aerospace Companies (SBAC)
