Written evidence submitted by the Ministry of Defence (WAF0005)

The Ministry of Defence (MOD) remains committed to a strong Defence presence in Wales backed up by a high level of Defence expenditure. Wales will continue to be home to 160th Infantry Brigade and Headquarters (HQ Wales) and a light infantry unit to be based at MOD St Athan. St Athan will become the main Army base in Wales.  Investment in RAF Valley on Anglesey and MOD Aberporth has secured their long-term future. All new UK fighter pilots pass through Valley before reaching their frontline squadron.  A new £11 million Royal Naval Reserve centre will open in Cardiff bay in 2020.

The MOD spent nearly £1 billion with Welsh industry in 2017/18 supporting around 6,300 jobs and helping to make Wales one of the most competitive places in the world to innovate, build business and deliver security.  

The Armed Forces and the Army, in particular, are proud of their strong historic links in Wales where they are well supported by the public. Tri-Service Regular and Reserve recruitment is successful and effective. Wales will also benefit from planned improvements to Regular Army recruitment.

Background

Military bases and Defence establishments in Wales are home to essential capabilities for the Defence of the whole of the UK.  The excellence of the training and support our Armed Forces receive in Wales is central to their success – from fast jet pilot training at RAF Valley, training areas around Brecon and the vital testing and evaluation at MOD Aberporth.  The Defence Electronics and Components Agency (DCEA) based at MOD Sealand in North East Wales is an executive agency of the MOD. It has a long history in providing hundreds of jobs and specialised services ensuring delivery of repair, maintenance, overhaul, upgrade and managed services for in-service and future military platforms across Defence.

The Defence of the UK and wider military tasks, including the capacity to support the civil authorities in times of crisis, requires a strong military presence across the whole of the UK. Service personnel in Wales play a full role in that and deploy across the UK and worldwide.

The UK Government continually reviews the UK’s Defence and security needs and threats facing the UK. The Armed Forces, including those in Wales, need to be flexible and adaptable to meet the readiness, capability and other requirements necessary to maintain the defence and security of the UK. Both the 2010 and 2015 Strategic Defence Reviews (SDSR) reached conclusions that had implications for Armed Forces levels, structures and the Defence estate.  These included a planned reduction of Regular Force levels, growth in Reserve Forces and increased integration with Regulars underpinned by the UK Government’s investment in new capabilities and in a modernised, war-fighting division as part of a Joint Force 2025.

The Whole Force Concept recognised the significant value achieved by the effective collaboration of Regular military personnel, Reserve Forces, Civil Servants and Defence industry contractors.

Throughout these reviews, the UK Government’s overriding criteria has been what is best for the Defence and security of the whole of the UK, what meets the needs of the Armed Forces and what is affordable and provides best value for taxpayers’ money. MOD has always recognised that Defence decisions have broader economic benefits and consequences for communities, Devolved Nations and Local Authorities. 

Although Defence is reserved, the UK Government recognises and respects that Devolution within the UK means that the Welsh Assembly and Welsh Government are empowered to take decisions on a range of responsibilities which can impact on Defence and our personnel and that Defence decisions can impact on devolved responsibilities. The MOD, Office of the Secretary of State for Wales and Welsh Government collaborate on shared interests and responsibilities to the benefit of the people of Wales.

Below are replies to the Committee’s request for evidence on six specific points.

1.     The level of overall MOD spend in Wales and its distribution

The UK Government has consistently committed a high level of expenditure to Defence. The core Defence budget is £38 billion and will rise to almost £40 billion by 2020/21. The Defence budget will rise by at least 0.5% above inflation in every year of this Parliament.  Following the October 2018 budget announcement, Defence will benefit from an additional £1 billion over the next two years. This takes the increase from 2017/18-2019/20 to £1.8 billion.

The MOD spends around £19 billion a year with UK industry, supporting 115,000 UK jobs. MOD continues to invest in UK prosperity through a huge range of areas including multi-million-pound military equipment contracts, the development of cutting-edge technology and investment into a smaller but more suitable Defence estate throughout the UK.

Wales benefits from the full range of UK Defence capabilities and the UK Government recognises the mutual benefits. The Defence budget is not allocated on a regional basis but is managed according to what is best for Defence and the UK taxpayer.  It is not possible to calculate total Defence spend in Wales (or any other nation or region of the UK) but there are significant examples of Defence economic and wider benefits to Wales. 

Annex A lists examples of recent Defence spend in Wales.  

The MOD spent £960 million with Welsh industry and commerce in 2017/18 (up from £946 million in 16/17) which supported around 6,300 jobs. This equates to £310 per person in Wales, above the UK average of £290 and demonstrates that Welsh business continues to play a vital part in the UK’s defence. Defence is supporting Welsh business, jobs and skills into the future and helping to make Wales one of the most competitive places in the world to innovate and deliver security.

The industry spend statistics do not cover indirect expenditure or supported jobs further down the supply chain.

In reality, the Defence spend in Wales will be higher than the nearly £1 billion spent with industry given the number of Defence personnel and bases in Wales. There are over 50 military bases and Defence establishments across Wales. There is also an extensive network of Reserves, Cadet and training sites across the whole of Wales.

The independent review Growing the Contribution of Defence to UK Prosperity, commissioned by the Defence Secretary and carried out by The Rt Hon Philip Dunne MP gives examples of the industrial and wider Defence benefits to Wales. An annex on page 67 of the report shows the size and spread of the wider Defence footprint in Wales including Defence bases and major Defence suppliers.

2.     The impact of MOD estate rationalisations on the number of Armed Forces personnel based in Wales, and on the local economies and the society of areas affected

The UK Government is committed to Wales being home to 160th Infantry Brigade and Headquarters (HQ Wales), a regular Infantry unit to be based at St Athan as well as the Infantry Battle School and related training facilities and RAF Valley.

A basing review announcement on 5 March 2013 confirmed the rationalisation of MOD St Athan to concentrate Defence presence at the site whilst releasing other parts of the site for commercial and regeneration opportunities. The announcement included the following:

• 14 Signal Regiment to relocate from Cawdor Barracks in Brawdy to St Athan after 2018;
• Beyond 2017 the MOD had no requirement for the ‘super hangar’ at St Athan which was to be made available for commercial use;  
• The RAF’s No.71 Investigation and Repair Squadron to move from St Athan to be collocated with other elements of No.42 Expeditionary Support Wing at RAF Wittering.

The 2016 Better Defence Estate Strategy (BDES) was the result of the SDSR2015 commitment to invest in a smaller, more suitable Defence estate which would reduce in size by 30% by 2040. It confirmed the following future closures in Wales:

• Cawdor Barracks, Brawdy, in 2024. (Deferred from previously). 14 Signals Regiment would be reprovided for. 
• Brecon Barracks in Brecon in 2027. 160th Infantry Brigade and Headquarters (HQ Wales) would be reprovided for in Wales.
• Sennybridge storage compound in 2025.  (A storage site with no personnel)

The announcement confirmed that a substantial military presence would remain at St Athan – a new Infantry battalion would be based there following the relocation of the RAF No. 4 School of Technical Training.

The announcement also confirmed the closure, in 2027, of Beachley Barracks in Chepstow, home of 1st Battalion The Rifles. Although Beachley Barracks is in England, it has been historically administered by HQ 160 Brigade, due to its proximity to Wales, across the River Wye, and the UK Government recognised that the impact would be felt in Wales where a number of Service families live.

Army 2020 Refine was a refinement of parts of the Army to align with commitments announced as part of SDSR 2015 and the BDES which later became the Defence Estate Optimisation Programme. Army 2020 Refine continued to sustain an Army of 82,000 and a whole force of 112, 000 Regulars and Reserves. It had no additional impact in Wales.

The release of sites that the MOD no longer needs provides opportunities for commercial use, resulting in regeneration, business growth and job creation. Although the UK Government does not routinely undertake economic impact assessments of base closures, MOD works closely with Local Authorities and Devolved Administrations to determine the impact of any of these decisions and seek regeneration opportunities. The sale of the MOD super hangar in 2017 to make it available to Aston Martin to start construction of a new luxury vehicle at St Athan is an example of this.  

MOD continues to explore such opportunities in collaboration with the Office of the Secretary of State for Wales, the Welsh Government and Local Authorities. 

Impact on force levels

As can be seen from the tables in Annex B, there has been an overall reduction in Regular force levels in Wales since 2010 (2,930 to 2,200) consistent with UK-wide planned reductions and an increase in Reserve Forces. Reserves Forces in Wales have increased since 2013 (1,550 to 1,970).

Some of the Regular Force reductions were as a result of increasing contractorisation of various activities that took place primarily at RAF Valley and MOD St Athan which have created and maintained local jobs and led to efficiencies in the MOD for reinvesting in Defence capabilities.

3.     The effectiveness of current recruitment policies for the Army, Air Force and Navy in Wales, including Capita’s performance in Army recruitment

All Regular recruitment is carried out online and processed through four Armed Forces Careers Offices (AFCOs) in Wales located at Swansea, Cardiff, Wrexham and Bangor. Each Service has a UK-wide annual target and there are no specific recruitment targets for Wales or any UK nation or region. Recruits from Wales are determined by the postcode given by individuals. 

The RAF and Navy recruitment performance throughout the UK is meeting existing targets, and the recruitment policies are equally effective in Wales as they are in the rest of the UK.

The number of Regular recruits who applied to join the Army with a Wales postcode has been on average around 5.7% of the total Army intake (3,820 out of 66,535 since 1 April 2010). 2017/18 figures show that 5.9% of the total Army intake were from a Welsh postcode (390 out of 6,680), compared to 5.6% in 2010/11 (480 out of 8,520).

Army Reserve recruits with a Wales postcode for 2017/18 were c.4.8% (115 out of 2,385). Overall Reserves figures and structure have grown significantly over the period.

The table at Annex C shows Regular recruitment performance in Wales from 2010 to 2018. 

Capita performance in Army recruitment

The Army and Capita have both acknowledged that performance has not been to the required level, with fault on both sides. The Army have established a comprehensive plan to bring momentum into the partnership with Capita and drive improvements to recruiting. This includes the new ‘Your Army’ marketing campaign, changes in process to reduce the time it takes applicants to join the Army, and efforts to increase the conversion of application into enlistments, these include better support to applicants from role model serving soldiers throughout the process and a review of medical entry policy. These improvements are all supported by the new IT system which is now delivering benefits.

There are early signs of improvement. Applications to join the Army are at a 5-year high and in January alone over 10,000 people applied to join as Regular soldiers. More time is required for these increased application numbers to pass through into increased enlistments and ultimately ‘Trade Trained Strength’. The Army is confident this will happen.

Within Wales, the application uplift will be a useful hook to promote local initiatives. The 'Welsh units' assist with recruiting across Wales and participated in many events across the country in 2018.

4.     The state of recruitment to the ‘Welsh combat units’ and the prospects for these units in the future

There are three British Army units traditionally associated with Wales. The 1st Battalion Welsh Guards (Pirbright, Surrey), the Royal Welsh (Tidworth, Wiltshire), and the Queen’s Dragoon Guards (Swanton Morley, Norfolk). The Royal Welsh Regiment also has a Reserve Battalion geographically dispersed across Wales. These have maintained historic ties with communities in Wales and all three recruit primarily from Wales.

The current strength of these units is comparable to other, similar units. However, it is recognised that recruitment into the Army generally has room for improvement. This is the Chief of the General Staff’s top priority. Several initiatives are in place to achieve this, which are already showing positive signs. The Army remains confident that these changes will deliver success, which will be seen across the breadth of the Army. However, due to the issues with implementing the Defence Recruiting IT system in Q3 2017/18, which had a significant negative impact on applications, and the length of the recruitment and training pipelines, it will take more time for these improvements to translate into ‘Trade Trained Strength’.

The Wales Outreach Team, supported by 22 Community Engagement Task Forces leads (representing each unitary authority) continue to carry out mobile recruiting activities across Wales, encouraging recruits into all parts of the Army, alongside the four AFCOs. Units under HQ 160th Infantry Brigade and Headquarters (HQ Wales) have conducted over 1,000 recruiting events since 1 Jan 2017. Each Reserve unit and sub-unit also has their own engagement team, primarily focussed on recruiting.

The British Army blends Welsh and British identity. HQ Wales 160th Infantry Brigade and Headquarters (HQ Wales) projects the Welsh identity within the Army. This work requires a consistent approach. Progress is steady and positive and benefits from the Army and Defence continuing to invest the time of senior leaders in Wales, such as Army senior leadership presence for Armistice 100 events, and similar plans for the 2019 commemoration of the liberation of ‘s-Hertogenbosch by 53rd (Welsh) Division (of which 160th Infantry Brigade is the sole remaining formation).

The Army Recruiting Group continue to exploit the success of one-off events (such as the UK Armed Forces Day in Llandudno in 2018 with footfall circa 150K - the largest public event in North Wales that year by some margin) with mobile recruiting campaigns.

5.     The Regimental Band & Corps of Drums of The Royal Welsh and its importance to Welsh society

The Corps of Army Music (CAMUS) has a proud tradition of producing world class military music. Army music generates and reinforces national pride and identity. Army bands support state ceremonial occasions, including HM Queen’s Birthday Parade, state visits, and public duties including guard mounts at royal residences. Other activities include commemorations such as the annual service at the Cenotaph, repatriations and celebration events (including military training graduation parades), and international defence engagement across the globe. 

The Band of the Prince of Wales Division is part of the CAMUS. The Royal Welsh Band is an Army Reserve Band and belongs to its parent regiment. The Band of the Prince of Wales Division will continue to be based at St Athan.

There are a number of British Army musical groups associated with Wales:

• The Band of The Prince of Wales Division – based in RAF St Athan
• The Band of The Royal Welsh – based in Cardiff
• The Corps of Drums of The Royal Welsh – based in Cardiff
• The Band of the Welsh Guards - based in London
• Corps of Drums of the 157 Regiment, Royal Logistics Corps – based in Cardiff
• Band of the Gwent and Powys Army Cadet Force – all three ACF County Contingents maintain a Cadet Band

They took part in 177 engagements in 2018, the majority of which were in Wales. Army musicians have performed at locations across Wales, including Brecon, Builth Wells, Cardiff, Caerphilly, Carmarthen, St Davids, Swansea and Ystrad Mynach.

In 2018, the Royal Marines Band Service had four engagements in Wales, of which three were in direct support of the Royal Navy. The Royal Air Force Music Service undertook 24 engagements.

6.     How to ensure that the Welsh units retain their links to Wales

Each of the three Services have long-standing relations and affiliations within Wales. Following the highly successful National Armed Forces Day in Llandudno in 2018, Wales has an increased appetite for running its own national ceremonial and commemorative events and the three Services are committed to making an important contribution.

On St David’s day in 2018, the Defence Secretary announced that the name of one of the new Type 26 warships would be HMS Cardiff, the third to be named in the City Class of eight brand new frigates.

The Regular components of the 1st The Queen’s Dragoon Guards, The Welsh Guards and The Royal Welsh have Welsh heritage and culture which are essential to their identity. These regiments maintain their connections to Wales in a number of ways. This includes having Wales-based locations for: the Welsh Guards and Royal Welsh Regimental Support Teams (RST); the Royal Welsh Regimental Headquarters in Cardiff, with an office in Wrexham; and the Queen’s Dragoon Guards Home HQ.

Wales benefits from having three Regimental museums: the Firing Line (shared Queen’s Dragoons Guards and Royal Welsh) in Cardiff Castle, Royal Welsh Fusiliers’ Museum in Caernarfon Castle and The Regimental Museum of The Royal Welsh in Brecon. These help to preserve Welsh martial heritage and links with traditional recruiting areas and communities.

There are regular Freedom and Homecoming parades, and an increasing number of Welsh national ceremonial and commemorative events. Affiliated Army Cadet Force Cadet Detachments in local communities and Combined Cadet Forces in schools provide an important link to local communities, along with networks of thriving Comrades’ associations that reinforce these community links and support the veteran community throughout Wales. Sports tours and matches provide opportunities for service sportspeople to compete for Wales and are an important element of the offer for Welsh soldiers.

It is also important to note that Welsh men and women serve proudly in all areas of the Army, not just the Welsh Combat Regiments.

Regular and Reserve units based in Wales also provide an essential link to their local communities with each Commanding Officer responsible for Community Engagement within a given area.  Military Bands and Regimental Mascots also enjoy high profiles across Wales.

April 2019

                                                                                                                                                          Annex A
 

Examples of recent Defence spend in Wales

Infrastructure

MOD capital expenditure on infrastructure in Wales was £13.7 million in 2018/19 so far. This does not include any refurbishment/investment in Service accommodation as this information cannot be readily split from maintenance expenditure.

The runway at RAF Valley on Anglesey has been restored as part of a £20 million refurbishment extending its operational life for a further 25 years. New headquarters, hangars and buildings have been established to deliver Basic Fast Jet training as part of the UK Military Flying System, using the Tucano replacement, the Texan T Mk 1 aircraft.

Project Cardiff is an £11 million infrastructure project on behalf of the Royal Navy in Cardiff Bay, HMS Cambria, which will house the Royal Naval Reserve Unit, Royal Marine Reserves and University Royal Navy Unit providing new opportunities to expand the Royal Navy presence in Wales.  This is currently the largest single infrastructure investment project for the Reserves in the UK.  When it opens in 2020, 300 personnel will be based there.

In 2017, the Government opened the Veterans’ Gateway service centre near Cardiff which provides a vital service to veterans across the world. 

The test and evaluation range at MOD Aberporth is being modernised and receiving significant investment, securing its future, as part of a £1 billion contract amendment to MOD’s existing Long-Term Partnership Agreement with QinetiQ.  The modernisation of MOD Aberporth will help reduce the overall operating costs of the range ensuring it remains competitive and has the capabilities required to support UK Defence, defence exports and attract international customers.

Kinmel Camp near St Asaph is a £1.1 million project to provide for a Joint Reserves and Cadet Centre for the medics and the Army Cadet Force. Further investment to redevelop the Cadet Training Centre is planned.

Equipment capabilities

SDSR 2015 introduced the innovative strike brigades based on the new AJAX vehicle family which General Dynamics UK is building in Merthyr Tydfil supporting 550 jobs. This represented a Defence commitment of £390 million in Wales and thousands more across the UK.

In 2017, the North Wales company Qioptiq, based in St Asaph, was awarded an £82 million contract to maintain surveillance and targeting equipment over the following five years. It employs more than 500 people at two sites in North Wales.

In January 2019, the US defence group Raytheon signed a £250 million contract with the MOD to provide support services to the RAF’s fleet of surveillance aircraft. The 11-year contract will secure 200 jobs at Raytheon’s intelligence and surveillance hub in Broughton, North Wales.

The F-35 avionic and aircraft component repair hub in North Wales was awarded a second major assignment of work worth some £500 million by the US Department of Defense, supporting hundreds of additional jobs, many of them at the MOD’s Defence & Electronics Components Agency (DECA) at Sealand. It will see crucial maintenance, repair, overhaul and upgrade services for an even wider range of F-35 avionic, electronic and electrical systems for hundreds of F-35 aircraft based globally.

Defence financial awards linked to the Armed Forces Covenant in Wales. 

Since it was created in 2011, the MOD Education Support Fund has awarded around £2 million to schools in Wales to finance projects to offset the effects of family mobility and/or parental deployment on Service pupils.   

Just over £2 million of the Armed Forces Covenant fund set aside for local grants has been spent in Wales since it began in 2015.

Armed Forces Communities in Wales have benefited from national grants awarded by the Covenant Fund such as the £2 million to fund a pilot project to create the Veteran’s Gateway.

                                                                                                                                            Annex B

Table 1: Strength of UK Regulars stationed in the UK/Wales from 2010 to 2018[1]

Table 2: Estimated[2] Total/Wales Future Reserve 2020 (FR20) population, trained and untrained, stationed in Wales 2013 to 2018

NB: Aggregate Reserves data prior to 2013 is not available.

                                                                                                                                            Annex C

Table 3: Tri-Service Regular recruits enlisted through Welsh AFCOs from 2010 to 2018