In July, I made a statement setting out headline conclusions from six months of work on the Modernising Defence Programme (MDP). Since then, work has continued apace. Firstly, I would like to welcome the extra £1.8 billion of funding for Defence, including the additional £1 billion that was in last month’s Budget.

Today, I want to provide an update on the MDP, and set out the work that will be ongoing. I have placed a full report on the MDP in the library of the House.

First, I should put the MDP into context.

The 2015 Strategic Defence and Security Review was the right plan for Defence at that time. The Government put the Defence budget on a firmer footing, increasing throughout the life of the Parliament. Defence is much stronger as a result of that. NATO is growing in strength and the UK is a leader. More allies are meeting the 2 per cent spending guideline, or have developed plans to do so. We are the second largest defence spender in NATO, one of only a small number of allies to spend 2 per cent of our GDP on defence, and invest 20 per cent of that in upgrading equipment.

We can be proud of what we have achieved since 2015. But we have to also be vigilant. National security challenges have become more complex, intertwined and dangerous since 2015 and these threats are moving much faster than anticipated.

Persistent, aggressive state competition now characterises the international security context. In response to the growing threats the MDP was launched in January.

And, in the last year, our Armed Forces have demonstrated their growing capability, engaged globally, and supported the prosperity of the UK. The Royal Navy has increased its mass and points of presence around the world. We have taken steps to forward base the Army, enhancing our global posture. The Royal Air Force has continued to innovate, and has celebrated a proud past its RAF100 years since its creation. Progress has also made in cyber and space, as the changing character of warfare makes both domains increasingly important. We have reinforced the UK’s position as a leading voice in NATO and on European security. And, our Armed Forces have led the way for Global Britain, tackling our adversaries abroad to protect our security at home and nurturing enduring relationships with our allies and partners.

Through the work over the past year the MDP has identified three broad priorities, supported by the additional £1.8 billion invested in Defence.

Firstly, we will mobilise, making more of what we already have to make our current force more lethal and better able to protect our security.

The UK already has a world-leading array of capabilities. We will make the most effective use of them.

We will improve the readiness and availability of a range of key Defence platforms: major warships, attack submarines, helicopters and a range of ISTAR platforms. We are adjusting our overseas training and deployments to increase our global points of presence, better to support allies and influence adversaries.

To improve the combat effectiveness of our Force, we will re-prioritise the current Defence programme to increase weapon stockpiles. And we are accelerating work to assure the resilience of our Defence systems and capabilities.

We can mobilise a full spectrum of military, economic and soft power capabilities. And, where necessary and appropriate we will make sure we are able to act independently.

We will also enhance efforts with our allies and partners, aligning our plans more closely with them, acting as part of combined formations, developing combined capabilities, and burden-sharing. And we continue to invest in, and grow, our global network of Defence personnel and the education and training we offer in the UK and overseas.

Secondly, we will modernise, embracing new technologies to assure our competitive edge

Our adversaries and competitors are accelerating the development of new capabilities and strategies. We must keep pace, and conceive of our joint force as consisting of five domains, air, land, sea, cyber and space, rather than the traditional three.

We must modernise, targeting priority areas. A major new step will involve improved Joint Forces Command that will be in a better position so that defence can play a major role in preventing conflict in the future and improve our cyber operations and capabilities across the armed forces but also across government as well.

This year Defence’s Innovation Fund put £20 million towards projects in areas including unmanned air systems, virtual reality training, and enhanced digital communications for the Future Commando Force. The fund will grow to £50 million next financial year, increasing the scope, ambition and value of the projects it can support.

We will launch new ‘Spearhead’ innovation programmes that will apply cutting-edge technologies to areas including sub-surface threats to our submarines, our intelligence, surveillance and reconnaissance capability, and command and control in the Land Environment as well.

And to drive innovation and change through the Department I am launching a Transformation Fund. Next year, I will ring-fence £160 million of MOD’s budget to create this fund available for innovative new military capabilities. I will look to make a further £340 million available as part of the Spending Review. This fund will be available for new innovative military capabilities which allows us to stay one step ahead of our adversaries.

Together these and other steps will enable the acceleration of our modernisation plans.

Thirdly, we will transform, radically changing the way we do business in Defence.

We need to improve markedly the way we run Defence. To sustain strategic advantage in a fast-changing world, we must be able and capable of continuous and timely adaptation. We will embrace modern business practices and establish a culture that nurtures transformation and innovation.

We also need to create financial headroom for modernisation. Based on our work to date, we expect to achieve over the next decade the very demanding efficiency targets we were set in 2015, including through investment in a programme of digital transformation.

We will develop a comprehensive strategy to improve recruitment and retention of talent, better reflecting the expectations of the modern workforce. We will access more effectively the talents of our ‘Whole Force’ across all three Services, Regulars, Reserves, Civil Service and industrial partners.

Looking ahead, dealing effectively with persistent conflict and competition will increasingly hinge on smarter, better informed long-range strategy. To help achieve these goals we will establish a permanent Net Assessment Unit, as well as a Defence Policy Board of external experts, to bring challenge to Defence policy and to Defence strategy.

Our achievements under the MDP have made Defence stronger. The capability investments and policy approaches set out, with the £1.8 billion worth of Defence funding, will help us keep on track to deliver the right UK Defence for the challenging decade ahead.

Without a shadow of a doubt, there is more work to be done as we move towards next year’s Spending Review. We must sustain this momentum if we are to realise our long-term goals of increasing the lethality, reach and mass of our Armed Forces. I will do everything within my power to make sure that the UK remains a Tier-One military power in the decade ahead, and that we continue to deliver the strong defence and security that has been the hallmark of the government.

I commend this statement to the House.

The Modernising Defence Programme

Tommy Tremayne sent to prison following the Solicitor General’s Unduly Lenient Sentence referral.

A man who violently robbed a vulnerable victim has today been jailed after the Solicitor General, Robert Buckland QC MP, referred his sentence for being too low.

Tommy Tremayne, 26, had been drunk and behaving aggressively on the day of the attack, and had already been spoken to by the police. His victim, a man with learning difficulties, fled when Tremayne demanded money from him. The offender then chased him down, before the victim tripped and fell. While he was on the floor, Tremayne punched him, and bit off the top of his ear, leaving the victim with a permanent deformity.

Tremayne was originally sentenced in October to a 2 year community order at Taunton Crown Court. Today, his sentence has been increased to 3 years and 4 months immediate imprisonment.

Speaking after the hearing, the Solicitor General said:

“Tremayne had already been warned about his aggressive behaviour by police. Despite this he made no effort to moderate himself, ultimately resulting in his terrorising of a vulnerable victim. I am pleased that the Court of Appeal today decided that a custodial sentence is a more appropriate reflection of this crime.”

We have enhanced our Civil Claim Fix service to include ‘case outcomes’.

This means case outcome rejects can be added to the challenges which the Civil Claim Fix service can consider.

It is important to remember that case outcomes need to be submitted in advance of claims to ensure prompt payment.

When to make a challenge

Challenges will be considered by the Civil Claim Fix service where you believe we have:

• rejected a civil claim incorrectly

• rejected an ‘outcome’ incorrectly

• asked for information already provided or not required in a ‘document request’ on a civil claim or outcome

When emailing Civil Claim Fix you need to set out your reasons clearly and include any relevant supporting evidence.

Guidance to help you

There is guidance available to help you avoid a reject or request for further information. This includes:

1. Civil Finance electronic handbook – for information required with your claim

2. Advanced billing guides – these are on the Client and Cost Management System (CCMS) website and detail the processes to follow when submitting your claim

The billing guides include one which deals with how to report any financial award to the client.

Further information

LAACivilClaimFix@justice.gov.uk – to contact our Civil Claim Fix team

Legal aid guidance – scroll to ‘Civil Finance electronic handbook’ under ‘Other guidance’

CCMS website: closing cases and submitting bills – scroll down to ‘Advanced Billing Guides’

Published 18 December 2018

London-based Quimera Energy Efficiency designs and delivers energy efficiency and smart building solutions for hotels around the world, and has secured a seven figure export contract in the US.

The firm will now see its systems installed in all three Marriott hotels operated by the MDM Hotel Group in Miami.

To help secure its partnership with MDM Hotel Group, Quimera Energy Efficiency worked closely with International Trade Advisers (ITAs) from the Department for International Trade (DIT) in London, who helped the business make key legal contacts and meet new commercial partners in the US.

In a bid to drive further US growth, Quimera Energy Efficiency is now working with government advisers at the British Consulate in Chicago to explore a new joint venture with Hyatt Hotels in the city.

The business is also in discussions with a further 30 hotels across the US market, which could deliver up to £6 million in revenue for Quimera Energy Efficiency between 2019 and 2022.

With growing overseas prospects, particularly in the US and China, the company expects to see its total revenue increase by 200% to more than £2.6 million over the coming year, reaching £35.4 million by 2024.

Quimera Energy Efficiency currently generates 70% of its turnover from overseas sales, with customers in 12 markets overseas, including Germany, the UAE, Oman, China, India and the Dominican Republic.

In addition to its UK-operation, Quimera Energy Efficiency has established wholly owned or controlled companies operating from Dubai and Shanghai. Over the next 6 months, the business aims establish a further 2 subsidiaries in Mumbai and Atlanta.

The business boasts the global energy efficiency sector’s first revenue model based entirely on the performance of its solutions, taking a share of the energy cost saved by its partners instead of charging up-front for its services.

John Chambers, Business Development Director, Quimera, said:

The US is home to some of the world’s largest hospitality brands, and we hope that this new US contract is the first of more to come.

We’ve been working with DIT since 2017, and its support in helping to source US legal and commercial partners was instrumental in making our deal with MDM happen.

Entering the United States seemed like a big step, especially considering the size of the market. DIT advisers were on hand to help develop our US operations, and have been on hand to offer advice on managing issues such as late payments from customers in other markets around the world.

Hospitality is a global industry, and our outlook has been global from the start. In addition to growing our business in the US, we’ll also be working with DIT to help build our operations in China, where $13 billion (£10.4 billion) of the $27 billion (£27.5 billion) global energy services market was spent last year.

The success of companies like ours shows that exporting isn’t just about goods, it’s services too, and I’d encourage anyone interested to make the most of the support available – the demand is out there.

We’re proud to be flying the flag for the UK overseas. With DIT’s support, Quimera Energy Efficiency is now the world leader in its field, with clients including the major hotel companies and their properties that we service around the globe.

Parveen Thornhill, Head of London Region, Department for International Trade said:

Quimera Energy Efficiency has been quick to recognise the opportunities for rapid growth overseas. When Quimera’s dedicated ITA Jim James first started working with the business, the US was identified as one of its priority markets for growth, and this deal is a major milestone.

The US market can be a daunting one to approach for many small businesses, due to its size, level of competition and its different regulations.

To help local firms tackle export hurdles such as these, we have a network of expert ITAs who can offer firms one-to-one guidance to help them conduct essential research, identify new partners and buyers, and navigate potential barriers such as regulations and tax.

I’m encouraging anyone interested in seeing what exporting can do for them to get in touch. If a company like Quimera can find success, there’s no reason many others can’t too.