Andy Burnham faces a decision on the £2.4 billion future of the Skynet military satellite network that will signal whether he is committed to his pledge to reindustrialise Britain. The ruling could determine whether the contract stays with Europe's Airbus, which has built and operated Skynet since 1969, or goes to a cheaper bid from American firm Lockheed Martin.
Union Unite says as many as 3,000 jobs in Portsmouth and Stevenage, plus potentially another 18,000 in the supply chain, are at stake, along with national security. Downing Street will make the final decision.
Security Concerns Over US Bid
Awarding the Skynet 6 contract to a US company such as Elon Musk's Starlink could risk international outcry, according to Kevin Maguire. Starlink previously dialled down coverage for invaded Ukraine, allowing Russian missiles to escape detection.
People close to the discussions say Burnham is well aware of the pitfalls. Business Secretary Jonathan Reynolds is worried about lost jobs, with Lockheed Martin's promise of a new factory in North East England unlikely to match mass redundancies.
Political and Union Pressure
Chancellor John Healey, when Defence Secretary, is said to have preferred sticking with Airbus, a company threatening to pull other work out of Britain if it loses Skynet, and doubted whether Lockheed could deliver on the price quoted.
Unite leader Sharon Graham argues that ministers keep saying buying British will be the default, and Skynet 6 is the first real chance a Labour government under new management can prove it. The last Tory Defence Secretary, Ben Wallace, coming out in favour of Airbus and against Lockheed is a consensus forming.
Labour MPs, ministers and trade union comrades are urging Burnham to walk that talk, as getting this wrong would mean substance trouncing style.
