HM Treasury has provided the Department with £560 million to restart production lines in UK companies.62 The Department told us that it is working closely with key suppliers in the UK, including BAE Systems, MBDA and Thales, to invest in long-term strategic capabilities. The Department subsequently wrote to us outlining its acquisition reform initiatives and explaining that DE&S is implementing a refresh of its strategy under its new Chief Executive.63 Improving the supply chain will also require working with allies. The Department has also placed requests for supply with US companies and has engaged with fellow NATO countries to discuss how they can collectively stimulate the industrial supply chain to meet the alliance’s long-term needs.64 We note that attempts to increase supply will be challenging given the current inflationary economic environment, particularly given that inflation tends to be higher in the defence industry than the general economy.65 57 Q 22; Letter from Permanent Secretary to the Chair, 23 January 2023, p.1 58 Q 25; Letter from Permanent Secretary to the Chair, 23 January 2023, p.1 59 Q 21 60 Q 17; Royal United Services Institute, Preliminary Lessons in Conventional Warfighting from Russia’s Invasion of Ukraine: February-July 2022, P55 61 Q 20 62 Q 22 63 Letter from Permanent Secretary to the Chair, 23 January 2023, p.4 64 Q 20 65 Q 88 MoD Equipment Plan 2022–2032 15