Grant Shapps Cleared to Join Defence Startup Despite Ethical Concerns

Published: 18 August 2025. The English Chronicle Desk

The parliamentary standards watchdog has faced criticism after approving former Defence Secretary Grant Shapps to take a role as chair of Cambridge Aerospace, a defence-focused startup, on the condition that he avoids working on defence matters. The decision has drawn condemnation from political ethics experts, who argue that the advisory body’s ruling stretches credibility and highlights weaknesses in oversight.

Shapps, a former Conservative minister, informed the Advisory Committee on Business Appointments (Acoba) that Cambridge Aerospace, founded three months after the Conservatives’ general election defeat, aimed to “develop technologies to reduce risks to aviation,” citing issues such as airport delays caused by drones. Based on this description, Acoba allowed him to provide “strategic direction and high-level advice,” stipulating that he refrain from engaging in defence-related work.

Labour MP Phil Brickell criticised the decision, noting that Cambridge Aerospace’s own presentations describe it as a “defence tech” company preparing for a “new era of warfare.” The firm, which has raised approximately $100 million (£73.9 million), is developing products like Skyhammer, designed to intercept drones and cruise missiles, drawing comparisons to Israel’s Iron Dome system. Co-founder Professor Steven Barrett emphasised the company’s mission “to protect the UK and our allies from the well-known threats we face from the skies.”

Cambridge Aerospace operates across multiple sites, including an engineering centre in Munich and a manufacturing hub in Gdansk, Poland. Co-founder Chris Sylvan previously worked for the California-based defence firm Anduril, which develops advanced aerial and robotic systems.

Shapps served as Defence Secretary between August 2023 and July 2024, within the two-year grace period requiring former ministers to seek Acoba approval before joining private sector roles. The body’s system is intended to prevent conflicts of interest, ensuring that ministers and their new employers do not benefit improperly from government knowledge or contacts. Unlike its French counterpart, however, Acoba can only offer advisory guidance rather than block appointments.

In its advice to Shapps, Acoba stated the risk of conflict was “limited,” noting that his work would focus on civilian aerospace, with no direct overlap with sensitive defence information from his ministerial tenure.

The issue has sparked debate over the “revolving door” between government and business. Transparency International criticised the current oversight framework as overly reliant on informal agreements, leaving room for potential abuse. Labour has pledged to replace Acoba with a stronger regulatory system that would impose stricter checks on post-office appointments.

Shapps defended his involvement, highlighting the importance of safeguarding civilian airspace and strengthening UK and allied security. He also pointed to the creation of highly skilled British jobs and the company’s growth in response to escalating aerial threats, particularly amid the conflict in Ukraine.

Cambridge Aerospace representatives stressed that the company has expanded rapidly since its formation, developing products and employing nearly 60 engineers, while continuing domestic manufacturing efforts. Barrett emphasised the firm’s commitment to providing low-cost defensive solutions capable of countering threats to both infrastructure and civilian populations.

The controversy surrounding Shapps’ appointment has raised renewed scrutiny of the boundaries between public office and private enterprise, prompting calls for clearer regulations and more robust enforcement of ethics guidelines for former ministers.