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Ex-Tory Minister Shapps Breaches Rules Over Military Tech Startup Contract

Financial Times Companies •
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Former Conservative defence secretary Sir Grant Shapps has been formally reprimanded for violating ministerial appointment rules tied to his role at Cambridge Aerospace, a military technology firm that subsequently secured a major government contract. Sir Laurie Magnus, the prime minister's independent adviser on standards, found Shapps failed to uphold expected standards regarding his chairmanship position.

Shapps joined Cambridge Aerospace after losing his parliamentary seat in July 2024, following advice from the now-abolished Advisory Committee on Business Appointments. The committee imposed strict conditions, including bans on government lobbying and involvement in defence matters, given the company's initially described civilian aerospace focus. However, the startup has since shifted toward military applications.

The controversy intensified after Defence Secretary John Healey announced Cambridge Aerospace won a multimillion-pound Ministry of Defence contract to supply Skyhammer interceptor missiles to UK forces and Gulf partners. Magnus criticized Shapps for allowing a perception of impropriety to develop and failing to seek updated guidance as the company's focus changed.

Shapps resigned from Cambridge Aerospace on April 30, acknowledging the company's greater-than-anticipated military emphasis. The breach raises questions about oversight of former ministers' business dealings and the effectiveness of post-government appointment rules, particularly given Acoba's previous criticism for approving similar arrangements.