Levelling up at home will support Global Britain abroad

The notion of levelling up appeals to our sense of fairness and is a mission everyone can applaud. The government’s excellent White Paper and the wide-ranging programme of Bills announced in the Queen’s Speech are substantial developments which business can get behind.

Clearly, levelling up requires government and business to work together. Companies that have weathered the pandemic have a responsibility to help our economy and support those most in need. Businesses should prioritise investment in education, skills, training and new technologies to create opportunities and drive productivity in those communities that are further behind others.

Successive UK governments have attempted to redistribute the wealth and opportunities in London and major cities. At BAE Systems we have been working at levelling up for a long time. In fact, because of the historic and regional location of our sites, our people have an expert understanding of the requirements of individual towns, districts and counties.

We are proud of the role we play in keeping our country safe. From 50 sites across Britain, we help to defend liberties around the world. Some two-thirds of our people in the UK are employed in engineering-related roles, supporting nationally important programmes such as the Astute and Dreadnought submarines, Tempest, the Future Combat Air System, and Type 26 frigates. To deliver these programmes, we harness and develop the most advanced technologies and skills – investing £1.1 billion in R&D and £93 million in skills in the UK alone in 2020.

But we do not operate in isolation. Our business has always been reliant on effective relationships. We have built long-term partnerships not just with the armed forces, government and global businesses, but also with a vast number of regional organisations. They include Local Enterprise Partnerships, local authorities, schools, colleges, universities and small businesses. We all share the same goal: to help communities grow, prosper and contribute to society.

With partners locally, we are training some 3,300 apprentices and graduates in the UK this year, and we continue to support the Movement to Work and Kickstart programmes. We have built our own skills academies close to our facilities in Barrow-in-Furness, Portsmouth and Samlesbury, Lancashire at a cost of more than £50 million. At Warton, also in Lancashire, we are developing a ‘Factory of the Future’ with prototypes of the most advanced manufacturing aerospace technologies. This effort is being driven in – and from – the north.

In Barrow, where we build Royal Navy submarines, we are a key stakeholder in the ‘Town Deal’ partnership, working with the council, Cumbria University, the Local Enterprise Partnership and others on a town investment plan. This has resulted in a successful application for £25 million of government funding to improve the local area. The plan includes the creation of a £10.4 million Barrow Learning Quarter, comprising a new university campus and community resilience hubs.

A recent independent report by Oxford Economics concluded that our operations generated nearly £4 billion of UK exports in 2020. These helped us support the equivalent of 143,000 full-time jobs and contribute more than £10 billion to GDP. The delivery of our defence and security equipment and services also enabled us to pay some £3.8 billion to more than 5,000 suppliers across the UK, including £700 million to suppliers located in the most economically disadvantaged communities.

We are clear that mutually beneficial regional plans and relationships are critical to our success as a business, not just at home but abroad too. The economic benefits realised by these exports enable us to continue investing in skills and technologies in the UK. Beyond the UK we have significant operations in Europe, the Middle East, Asia, Australia and the US – and as such, we’re well placed to support the government’s aspiration for a truly global Britain.

The key to levelling up is not some centrally controlled master plan, but bespoke solutions by the people who actually live in our regions. If we are to turn an ambition into a practical achievement, this is the time when businesses must step up and work alongside regional stakeholders and the government. We must think internationally and nationally but act locally to deliver a fairer, more prosperous and equitable society. One that represents the very best of Britain, at home and aboard.