£450M surge of military support to boost Ukraine’s Armed Forces as UK and Germany chair meeting of 50 nations

Package will support UK jobs and growth, with equipment and repair contracts connecting UK companies with Ukrainian industry

The UK is ‘surging’ rapid military support to Ukraine to put them in the strongest position to secure a lasting peace as partners meet in Brussels for the 27th Ukraine Defence Contact Group, chaired by the UK and Germany.

The security of the UK and Europe starts in Ukraine, and a major new military support package will be delivered by British and Ukrainian suppliers to help boost Ukraine’s Armed Forces as they continue to defend against Russian attack. As chair of the meeting, the UK has secured ambitious pledges for Ukraine from donor countries.

Today’s package, worth £450 million, includes £350 million from the UK from this year’s record £4.5 billion military support funding for Ukraine. Further funding is being provided by Norway, via the UK-led International Fund for Ukraine.

The support package will be announced by Defence Secretary John Healey when he chairs the contact group alongside German Defence Minister Boris Pistorius later today, where 50 nations will come together to coordinate urgent military support for Ukraine.

It will include £160 million of UK funding to provide repairs and maintenance to vehicles and equipment the UK has already provided to Ukraine – partnering UK companies with Ukrainian industry, supporting the UK economy and skilled jobs.

Today’s support also includes a new ‘close fight’ military aid package – with funding for radar systems, anti-tank mines and hundreds of thousands of drones – worth more than £250 million, using funding from the UK and Norway. The package builds on the work of the drone capability coalition, led by the UK and Latvia.

This will include high manoeuvrable first-person view (FPV) drones to attack targets, and drones which can drop explosives on Russian positions. These two types of drones are reported to be responsible for 60-70% of damage currently caused to Russian equipment.

The new kit will be procured from a mixture of UK and Ukrainian suppliers, demonstrating how investment into Ukraine’s defence supports jobs and the economies of both the UK and Ukraine.

The £160 million package for equipment repairs and maintenance will ensure vital armoured vehicles and other equipment can get back to the battlefield as quickly as possible. It will be implemented through the UK’s Taskforce HIRST, linking UK and Ukrainian companies to ensure repairs can be conducted in country to ensure that vital equipment is returned to the frontline as quickly as possible.

The support provides opportunities for British companies to learn lessons from the battlefield and support the UK’s own industrial capabilities, an example of the UK-Ukraine 100-year partnership announced by the Prime Minister in action.

Addressing the contact group, Defence Secretary John Healey MP will say: “The work of the Ukraine Defence Contact Group is vital to put Ukraine in the strongest possible position and pile pressure on Putin to help force him to end this terrible war.

We cannot jeopardise peace by forgetting the war, which is why today’s major package will surge support to Ukraine’s frontline fight.

“2025 is the critical year for Ukraine. Our job as defence ministers is to put into the hands of the Ukrainian war fighters what they need. We must step up to deter Russian aggression by continuing to bolster Ukraine’s defences.”

Yesterday, [Thursday] the Defence Secretary and his French counterpart, Minister Lecornu, chaired the first meeting of Coalition of the Willing defence ministers, bringing together 30 countries to progress planning for a reassurance force to support a lasting peace in Ukraine.

The meeting followed a series of high-level meetings of leaders and defence chiefs in the last month to move forward with operational planning.

This work delivers on the Prime Minister’s four-point plan to support Ukraine by ramping up delivery of weapons and equipment, boosting Ukraine’s defensive capabilities in the long term, working with allies to develop robust security assurances, and keeping up pressure on Putin.

The UK is fully committed to working with allies to step up support to ensure Ukraine remains in the strongest possible position, which is why £4.5 billion of military support will be provided this year – more than ever before.

As well as demonstrating leadership through the Ukraine Defence Contact Group and Coalition of the Willing, the UK is also contributing heavily to NATO’s Security Assistance and Training for Ukraine (NSATU) Command, which is coordinating further support for Ukraine in the form of training and providing more capabilities. Through the International Fund for Ukraine, the UK will manage the NSATU Trust Fund for rapid procurement – which Canada, Denmark and Iceland have already pledged funding towards, to meet Ukraine’s urgent equipment support and logistical needs.

Deposit Return Scheme support ‘should end delay calls’

Circularity Scotland has today (21st February 2023) announced £22 million of cashflow support measures to help Scotland’s brewers, distillers, importers and drinks manufacturers prepare for the introduction of Scotland’s deposit return scheme.

The package includes:

  • Up front charges removed for lower sales volumes
  • Improved payment terms for lower sales volumes
  • Simple labelling option for niche products, alleviating administrative burden

The support package is particularly designed to help SMEs, who have previously voiced concerns about the impact of the scheme on their business’ cashflow.

To address these concerns, Circularity Scotland is removing the day one and month one charges for all producers, up to a threshold of three million units per year. It is also providing two month credit terms on deposits and fees up to the same volume threshold to reduce the working capital impact on all producers.

The three million unit threshold has been established to ensure that the thousands of smaller scale producers selling in Scotland benefit more proportionately from the cashflow support. This will particularly help companies like craft brewers, wine importers and craft spirit producers. The two month credit terms will be made available to all producers, regardless of their size, ensuring all producers within the scheme are treated equally.

Circularity Scotland has also confirmed that it will be offering the option to use self-adhesive barcode labels for producers placing less than 25,000 units per year of a specific product on to the Scottish market. This will provide a simple and straightforward administrative solution for independent producers and importers for whom the cost of changing packaging to introduce new barcodes could be prohibitive.

David Harris, Chief Executive of Circularity Scotland said: “Circularity Scotland was established by industry to meet their obligations under the deposit return scheme as efficiently and cost-effectively as possible.

“This announcement is further evidence of how we are continuing to innovate and identify additional ways to mitigate the pressure on businesses. We know that smaller producers in particular have been concerned about the cashflow impacts of the scheme, and these measures will address those concerns.

“Circularity Scotland has successfully secured over £100m of third-party funding to establish the infrastructure of the deposit return scheme, with only minimal up-front funding from the very largest producers. This funding approach allows producers both large and small to benefit on equal terms from this investment in world-class infrastructure and leading-edge technology and only pay their share of the costs once the scheme is in operation.

We have already announced reductions in producer fees of up to 40%, while also being able to offer the highest return handling fees of comparable schemes anywhere in the world. These additional support measures further demonstrate our confidence in being able to deliver ongoing operational efficiencies once the scheme has gone live. We are committed to ensuring that the deposit return scheme works for Scotland, is cost effective for business and helps protect our environment for generations to come.”

Circular Economy Minister Lorna Slater said: “This is a big and welcome change that responds directly to many of the concerns that have been raised, particularly those from smaller producers like craft brewers.

“It addresses initial cash flow challenges, and provides a pragmatic and simple solution to the issues raised around barcodes for smaller product lines. This is a package that gives businesses the clarity and confidence they need to be part of Scotland’s deposit return scheme.

“Over the last few months I have been meeting industry regularly to listen to their feedback and this industry-led solution has been designed in direct response to its concerns. I remain committed to a pragmatic approach to implementation between now and the 16 August.

“By working together we can lead the UK in delivering a deposit return scheme which will increase Scotland’s recycling rates from around 50% to 90%, cut emissions, tackle littering and address public concerns about the impact of plastic and other waste.”

Businesses looking for more information on these measures or how they can register for the scheme should contact Circularity Scotland’s customer support team at www.circularityscotland.com or on 0141 401 0899.

Campaigners have welcomed the news that small businesses will be supported to launch Scotland’s deposit return scheme on time this year in August 2023.

Kim Pratt, circular economy campaigner at Friends of the Earth Scotland, said: “The announcement today demonstrates commitment from Circularity Scotland and the businesses they represent to start the scheme on time in August 2023, and we’re pleased to see that support is being given to smaller businesses to address their concerns.

“This announcement should end calls for further delays. To undo the building momentum for the scheme would be counterproductive for producers and retailers planning for an August introduction, as well as risking further environmental pollution from discarded drinks containers.

“It is fundamental to the long-term success of the scheme that the costs of Scotland’s  Deposit Return Scheme come from industry. Part of the purpose of a scheme like this is to make sure the responsibility for cleaning up is held by the companies that are producing the waste, rather than from the public purse, as is currently the case.”