Joshua Stein reveals how defence contractors are booming while the rest of the British economy suffers from the impact of the Coronavirus crisis
The Ministry of Defence has forked out hundreds of millions of pounds to its favoured clients in 2020, in the face of the economic ruin caused by the COVID-19 pandemic.
A Byline Times investigation has revealed multi-million-pound contracts signed by the MoD surged by more than £30 million between April and July 2020, despite the economic toll of the Coronavirus pandemic.
In comparison to 2019, the ministry’s 10 top contractors – headed by BAE Systems and Babcock International – took in an extra £32 million worth of profits from contracts with the MoD.
The MoD paid the 10 companies a total of £712.4 million for contract work in just four months, in comparison to £679.6 million in the same period the previous year. Statistics firm Statista revealed that these 10 companies were the MoD’s “leading suppliers” in 2018-2019.
While contract data is vague, some of the expenditure has been traced back to the industry giants.
BAE Systems, which was the highest paid MoD contractor in 2018/2019, received £200 million worth of funding towards its dreadnought submarine work in the six months leading up to June 2020. Much of that period was spent under lockdown, which began in England on 23 March. The documents do