1. BUSINESS APPOINTMENT APPLICATION: Lieutenant General Sir Nick Borton KCB DSO MBE, former Commander of the Allied Rapid Reaction Corps (ARRC), Ministry of Defence. Paid appointment with Lockheed Martin UK.

Lieutenant General Sir Nick Borton KCB DSO MBE (Lt Gen Sir Nick) approached the Advisory Committee on Business Appointments (the Committee) under the government’s Business Appointment Rules for Former Crown Servants (the Rules) seeking advice on taking up an appointment with Lockheed Martin UK (Lockheed Martin) as Strategic Adviser.

The purpose of the Rules is to protect the integrity of the government. The Committee has considered the risks associated with the actions and decisions made during Lt Gen Sir Nick’s time in office, alongside the information and influence he may offer Lockheed Martin. The material information taken into consideration by the Committee is set out in the annex below.

The Committee’s advice is not an endorsement of the appointment - it imposes a number of conditions to mitigate the potential risks to the government associated with the appointment under the Rules.

The Rules^{[footnote 1]} set out that Crown servants must abide by the Committee’s advice. It is an applicant’s personal responsibility to manage the propriety of any appointment. Former Crown servants are expected to uphold the highest standards of propriety and act in accordance with the 7 Principles of Public Life.

2. The Committee’s consideration of the risks presented

There is an extensive relationship between the UK Ministry of Defence (MOD) and Lockheed Martin which is an aerospace and defence manufacturer. In Lt Gen Sir Nick’s operational role, he was not responsible for policy, commercial or regulatory decisions specific to the company whilst in Crown service, nor did he meet with the company. Therefore, the Committee^{[footnote 2]} determined that the risk of reward for actions taken in office was low.

As Lockheed Martin operates within the defence sector, there is a risk that Lt Gen Sir Nick may have, or be seen to have, access to general information on defence matters that could offer Lockheed Martin an unfair advantage over its competitors. There are a number of mitigating factors in relation to his access to sensitive information:

● Lt Gen Sir Nick’s access to information was limited to the operation and training of the troops he was responsible for (ARRC) - ensuring readiness and the discharge of operational tasks, as directed by higher command headquarters in the UK and NATO.

● he was not responsible for leading on the development of overall UK or NATO military strategy or plans;

● his operational focus was on the response to the war in Ukraine and focussed on deterrence in a fast moving conflict;

● Lt Gen Sir Nick said that Sir Nick said that he did not have access to sensitive information, despite sitting on operational boards within ARRC, and noted that much information is readily available through Janes - a platform for global open-source defence intelligence;

● the MOD is not aware of any access to information that could unfairly advantage the company;

● there will have been a seven month gap between Sir Nick’s operational role and access to information and when he intends to take up this role.

There is also a risk associated with the wide range of contacts that Lt Gen Sir Nick would have amassed during his time in office, in the UK and beyond. Such a network may offer unfair access to the UK MOD, particularly if he was to be involved in work with the UK MOD, or exploring potential future work with the UK MOD.

3. The Committee’s advice

The Committee considered Lt Gen Sir Nick’s role as ARRC and his access to information presents limited risks given its operational focus on Ukraine and that he left his role over seven months ago.

However, the Committee considered that Lt Gen Sir Nick’s role within the MOD, and working alongside NATO allied militaries presents real and perceived risks under the Rules. Particularly at the operational level as an expert in recent warfighting and operations. The Committee agreed with the MOD that there should be a condition imposed to prevent him from advising on the UK defence sector in this role, including avoiding any contact with the UK MOD to avoid any perception of unfair access.

The conditions below make it clear Lt Gen Sir Nick must not make use of his access to privileged information, contacts or influence gained from his time in Crown service to provide LMUK unfair advantage, including in relation to bids and contracts with the UK MOD or NATO allied militaries.

The Committee advises, under the Government’s Business Appointment Rules, that Lt Gen Sir Nick’s role with Lockheed Martin UK should be subject to the following conditions:

● he should not draw on (disclose or use for the benefit of himself or the persons or organisations to which this advice refers) any privileged information available to him from his time in Crown service;

● for two years from his last day in Crown service, he should not become personally involved in lobbying the UK government, MOD or NATO allied militaries or their arm’s length bodies on behalf of Lockheed Martin UK (including parent companies, subsidiaries, partners and clients); nor should he make use, directly or indirectly, of his contacts in the government and/or ministerial contacts to influence policy, secure business/funding or otherwise unfairly advantage Lockheed Martin UK (including parent companies, subsidiaries, partners and clients);

● for two years from his last day in Crown service, he should not provide advice to Lockheed Martin UK (including parent companies, subsidiaries or partners) on the terms of, or with regard to the subject matter of, a bid or contract with, or relating directly to the work of the UK government, the MOD and its trading funds, NATO allied militaries or their arm’s length bodies; and

● for two years from his last day in Crown Service, he should not advise Lockheed Martin UK (including parent companies, subsidiaries and partners) on the UK defence market; and he must not directly engage with the UK government or its arm’s length bodies on Lockheed Martin UK’s behalf (including parent companies, subsidiaries, partners and clients).

The advice and the conditions under the government’s Business Appointment Rules relate to Lt Gen Sir Nick’s previous role in government only; they are separate from rules administered by other bodies such as the Office of the Registrar of Consultant Lobbyists, the Parliamentary Commissioner for Standards and the Registrar of Lords’ Interests^{[footnote 3]}. It is an applicant’s personal responsibility to understand any other rules and regulations they may be subject to in parallel with this Committee’s advice.

By ‘privileged information’ we mean official information to which a Minister or Crown servant has had access as a consequence of his or her office or employment and which has not been made publicly available. Applicants are also reminded that they may be subject to other duties of confidentiality, whether under the Official Secrets Act, the Civil Service Code or otherwise.

The Business Appointment Rules explain that the restriction on lobbying means that the former Crown servant/Minister ‘should not engage in communication with government (ministers, civil servants, including special advisers, and other relevant officials/public office holders) – wherever it takes place - with a view to influencing a government decision, policy or contract award/grant in relation to their own interests or the interests of the organisation by which they are employed, or to whom they are contracted or with which they hold office’.

Lt Gen Sir Nick must inform us once he takes up employment with this organisation, or if it is announced that he will do so, by emailing the office at the above address. He must also inform us if he proposes to extend or otherwise change the nature of his role as, depending on the circumstances, it may be necessary for him to make a fresh application.

Once the appointment has been publicly announced or taken up, we will publish this letter on the Committee’s website, and where appropriate, refer to it in the relevant annual report.

4. Annex- Material Information

4.1 The role

Lockheed Martin UK is a wholly owned subsidiary of the Lockheed Martin Corporation, an American aerospace and defence manufacturer with worldwide interests. Lockheed Martin UK has a contractual relationship with the MOD as a manufacturer of defence equipment through a number of contracts (currently 49), and indirectly as a sub-tier supplier to other manufacturers.

According to the job description, Lt Gen Sir Nick’s paid role as Strategic Advisor with Lockheed Martin will include: ● acting as a member of its Strategic Advisory Board, providing strategic advice and insight. ● helping shape the Strategic Advisory Board’s future plans, alongside monitoring and executing the strategic plan as it develops. ● advising on the long-term viability and sustainability of Lockheed Martin’s business and taking into consideration the impact of decisions on various stakeholders - employees, and suppliers, the communities in which it operates, and the environment.

● maintaining the values and standards of the Lockheed Martin Corporation and complying with the Lockheed Martin Code of Ethics and Business Conduct.

It will exclude:

● contact with customers or potential customers for purposes directly related to obtaining, retaining, or facilitating business or business opportunities - the role is to advise Lockheed Martin, not represent it to customers.

● working in the UK defence market; it will be solely focused on internal strategic and general military advice, set against the wider international strategic context.

Lt Gen Sir Nick confirmed his contract with LMUK will contain a clause that specifically states his role as Strategic Adviser will comply with ACOBA’s advice whilst he is under the Rules.

Lt Gen Sir Nick separately confirmed his role will not involve contact with, or lobbying the UK government.

4.2 Dealings in office

Lt Gen Sir Nick advised the Committee that he did not have involvement in any policy, regulatory, or commercial decisions, nor did he meet with or have access to sensitive information specific to LMUK. He added that he has not been responsible for any staff working or contracting with LMUK.

In prior advice, Lt Gen Sir Nick stated that his role as Commander of the Allied Rapid Reaction Corps was operational^{[footnote 4]}; and he did not have any access to sensitive information. Further, some of this information t would now have entered the public domain through Janes - a defence news resource.

4.3 Departmental Assessment

The MOD confirmed the details Lt Gen Sir Nick provided and confirmed:

● Lockheed Martin has an ongoing contractual relationship with the department.

● Lt Gen Sir Nick did not have any direct involvement in any of the MOD’s relationships with companies and organisations operating in the same area of capability delivery as Lockheed Martin.

● Its direct spend with Lockheed Martin is in the region of £240m per year. This does not include sub-contracted revenue, Foreign Military Sales, and, significantly, the Lightning F35 aircraft, purchased through an international collaborative defence programme, although manufactured by Lockheed Martin.

● Lt Gen Sir Nick was not involved in any decisions specific to, nor did he meet with Lockheed Martin during his time in post.

● It was not aware of any specific information he had access to that would offer Lockheed Martin an unfair advantage.

● Lt Gen Sir Nick would have influence at the highest levels of UK MOD and NATO.

Previously, the MOD confirmed his operational focus was on the response to the war in Ukraine and focussed on deterrence in the region, which is a fast moving conflict area^{[footnote 5]}.

The MOD recommended the standard conditions alongside conditions to limit the overlap with his responsibilities in office. prevent him working in the UK defence sector making use of contacts gained in office to the unfair advantage of Lockheed Martin.