Birkenhead shipyard Cammell Laird could see more UK defence contracts coming its way after a significant change to Government procurement. Tony McDonough reports

Defence minister Luke Pollard has confirmed to Parliament that new legislation around Government procurement could see more work coming to UK shipyards such as Cammell Laird.

This week the UK Defence Journal reported on an exchange in the House of Commons between Labour MP Luke Akehurst and Mr Pollard. In a question to the minister Mr Akehurst asked about how the Procurement Act 2023 would be applied to shipbuilding.

Mr Pollard asked what assessment the department had made of the impact of the Procurement Act 2023 on increasing the volume of MoD-related work for the UK shipbuilding sector. 

In his reply the minister said: “The Government recognises the importance of a sovereign shipbuilding sector for our national and economic security.”

He added the Cabinet Office had announced further policy updates to the Act, with shipbuilding listed among the sectors marked for priority procurement reform on the grounds that it is critical to national security.

Crucially, he added, this “will mean more contract awards at British shipyards, boatyards, and small-to-medium enterprises”.

READ MORE: First look inside new £26m Mersey Ferry Royal Daffodil

Cammell Laird in Birkenhead is already undertaking work on UK defence contracts via its partnership with BAE Systems. In March LBN revealed the yard had reached a major milestone in the Royal Navy Type 26 frigate build programme.

Workers are building sections of the new advanced anti-submarine warfare vessels on behalf of main contractor BAE Systems and have completed the bow for HMS Birmingham.

In all the Royal Navy has commissioned BAE to deliver eight Type 26 vessels. They are HMS Glasgow, Cardiff, Belfast, Birmingham, Sheffield, Newcastle, Edinburgh and London. All are expected to be in service by the mid-2030s.

APCL Group, which includes Cammell Laird, secured contracts with BAE in 2023. Sections are being built in Birkenhead and at another APCL yard at A&P Tyne and will be assembled at BAE Systems’ site in Govan in Scotland.

The UK Defence Journal said the National Shipbuilding Office is leading the work for the sector in collaboration with the Cabinet Office. It is developing a new framework intended to deliver more shipbuilding work in the UK.

Mr Pollard added the office’s forthcoming Shipbuilding and Maritime Technology Action Plan would “go further than previous strategies in delivering for our powerful sovereign shipbuilding industry”.