UK Defence Secretary Ben Wallace has raised the baseline profit rate for single-source defence contracts to 8.22% in financial year (FY) 2020/21, up 0.59% from the previous year.
The increase from the FY 2019/20 rate of 7.63% is in line with the recommendation of the UK’s Single Source Regulations Office (SSRO), Wallace said in a statement on 13 March. The rise comes as the UK economy experiences slowing growth, further strained by the spreading coronavirus outbreak.
The announcement is “welcome news and will support industry as it manages the economic challenges ahead”, said Paul Everitt, chief executive of ADS, which represents the UK aerospace, defence, security, and space industries.
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