Grant Shapps quits aerospace firm after watchdog probe

A former Conservative defence secretary has quit his job with a missile manufacturer over concerns he broke the rules governing the employment of former ministers.

Sir Grant Shapps resigned as chairman of Cambridge Aerospace on 30 April "to simplify matters" and after the firm secured a multimillion-pound government missile contract.

He said he had had no involvement in the deal or the company's military work and, despite a title of "chairman", had not chaired its board or been a director, but was "one of several co-founders".

Ministerial ethics watchdog Sir Laurie Magnus said he had "allowed a perception of impropriety to develop" and "failed to uphold the standards expected in the rules".

Sir Grant served as defence secretary under Rishi Sunak and has held a number of ministerial posts in government.

He was the Conservative MP for Welwyn Hatfield in Hertfordshire from 2005 to 2024, when he lost his seat in the general election.

The now defunct Advisory Committee on Business Appointments (Acoba) approved his role with the company in 2025 on condition that he play no part in its defence-related work until two years after he left office.

Acoba's decision was criticised by anti-corruption campaigners at the time, including Labour MP Phil Brickell, who said Sir Grant's claim the company was focused on "civilian aerospace" was "stretching credulity" given the firm's own description of itself as involved in "defence tech".

In correspondence with Sir Grant, Sir Laurie questioned whether he had complied with this condition, noting the company "seems publicly to have only one project, which is defence-related".

The watchdog initially contacted Sir Grant following the announcement on 10 April of a contract for Cambridge Aerospace to supply the UK and its Gulf allies with "Skyhammer" interceptor missiles.

Sir Laurie said the announcement "appears to be at direct variance with your original description of the role".

He added: "It is, on the face of it, difficult to reconcile the current scope of Cambridge Aerospace's operations with the restriction that you avoid defence matters entirely, and in the absence of a fresh application for advice in view of changes to the nature of the business of Cambridge Aerospace under your chairship."

In response to Sir Laurie's letters, Sir Grant said he had "scrupulously" followed Acoba's rules and was not involved "in any way, at any time, in any capacity" in the contract between Cambridge Aerospace and the Ministry of Defence.

But he apologised for not seeking further advice as the company began working on defence matters, saying this was "an oversight for which the excessive speed of events is the only mitigating circumstance".

Sir Grant also declined to answer a series of detailed questions from Sir Laurie, citing "legal obligations of confidentiality which I cannot unilaterally waive".

Brickell said he welcomed Sir Grant's resignation, but called for tougher sanctions for former ministers who broke the rules.

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