Corporate report

Board minutes: 9 December 2025

Published 21 April 2026

Minutes of the 60th Board Meeting

held at 100 Parliament St and video-conference 9 December 2025 10:00-14:00

Board members present:	Others present:
Hannah Nixon (Chair)	Malcolm Botting (for part)
Roy Barker	Colin Hill
Hugh Kelly	Ben Johnson (for part)
John Russell	Siobhan O’Donoghue
Joanne Watts	Akhlaq Shah (for part)
Claire Williams	Colin Sharples (for part)
	Amar Vara
	Tara Usher (MOD) (for part)
	Kevin Craven (ADS) (for part)

1. Closed Board discussion

The Chair held a private session with NEBMs, the Chief Executive and Chief Regulatory Officer.

2.Welcome, apologies, announcements, and declarations of interest

The Chair welcomed Board members and attendees to the meeting, including Amar Vara (Principal Adviser, Pricing & Economics Team), attending as the ‘open chair’ representative.

There were no apologies for absence.

The Chair briefed the Board on issues discussed at the 5 December 2025 NAD Group ALB Chairs meeting.

Declarations of Interest

There were no declarations of interest.

3.Stakeholder Speaker: Kevin Craven, Chief Executive, ADS

The Chair welcomed Kevin Craven to the meeting, as part of the Board’s regular programme of stakeholder engagement.  The wide-ranging discussion covered industry’s perspective on the defence policy landscape; ongoing Ministry of Defence (MOD) reviews and reform initiatives; and opportunities to improve regulatory flexibility, support for innovation, and strengthening engagement across the sector.  Kevin shared industry’s perspectives on the SSRO’s role, speaking positively about the value of the SSRO’s engagement and independence, and encouraged further opportunities for the SSRO to deepen its understanding of industry challenges.  The Board thanked Kevin for his insights and welcomed the offer of a follow-up paper.

4. Minutes of 59th meeting held on 30 September 2025 (SSRO 01-1225) and action tracker (SSRO 02-1225)

The minutes of the Board meeting held on 30 September 2025 were approved as a correct record.  There were no outstanding or overdue actions.

The Board approved as a correct record the minutes of the 59th SSRO Board meeting held on 30 September 2025.

5. Chief Executive’s Report (SSRO 03-1225)

The Chief Executive presented his regular report, which detailed recent activities, current priorities, and key matters not covered elsewhere on the agenda.  The Board noted receipt of the MOD’s Priorities Letter for 2025-26, which signalled that the Arm’s Length Body (ALB) review of the SSRO would commence in early 2026, and also referred to the SSRO’s contribution to the Single Source Contract Regulations (SSCR) review.  The Board considered the need for appropriate sequencing across the ALB Review, the SSCR Review and associated budget and planning activity.  The Board also noted updates on the re-launch of the DefCARS/ITMS contract procurement, and revisions to the 2025-26 internal audit plan.

The Board noted the Chief Executive’s Report.

6. Corporate Performance Report (SSRO 04-1225)

The Board discussed the Corporate Performance Report (CPR), which had been updated to track progress against the priority areas set out in the MOD’s Priorities Letter to the Chair, and summarised performance against objectives and corporate risks.  Updates discussed included the high level of helpdesk queries being effectively managed within existing resources, and ongoing improvements to the SSRO website to enhance the offer to stakeholders.

The Board noted the Corporate Performance Report.

7. Annual HR update (SSRO 05-1225)

The Board received the annual update on priority people-focused activities.  The HR Manager outlined progress made in delivering the 2023-26 Workforce Strategy, together with details of the application of the pay remit 2025, and the range of measures underway to strengthen organisational capability.  These included development of staff commercial skills through training, placements and recruitment.

The Board also considered the results and headline analysis of the 2025 employee engagement survey, which had attracted a high participation rate and, despite the wider programme of ongoing change across the SSRO and MOD, had produced generally positive scores.  Some areas for improvement had been identified, and a targeted action plan was being developed in consultation with the Staff and EDI Groups.  The Board would receive a further update at its March 2026 meeting, and comparison data from the Civil Service People Survey would be shared, once available.  ACTION:  Human Resources Manager

In its broader discussion, the Board also reflected on how the roll-out of artificial intelligence tools could support staff in their roles and create further efficiencies.  The Board welcomed the report, emphasising the importance of sustained action planning and ongoing monitoring.  The Board also noted the potential value of drawing on Employee Engagement Survey findings when shaping performance indicators for the next Corporate Plan.

The Board noted the updates on key HR activities provided.

8. Corporate Plan 2026-27 (SSRO 06-1225)

The Board discussed the approach to the next Corporate Plan, agreeing that a one-year refresh of the current Plan was appropriate, given the current fluid planning environment.  The refreshed Plan would maintain a focus on statutory functions, including support for the MOD’s SSCR review.

The Board provided feedback on draft objectives and indicators.  Development of the Plan would also be informed by stakeholder feedback from Industry and the MOD in coming weeks.  The Board acknowledged the external uncertainties that could potentially influence the SSRO’s remit and priorities, including the SSCR and ALB Reviews.  The Board also noted the dependencies arising from the live procurement and business case for future ITMS and DefCARS development, and uncertainties in current budget assumptions, all of which would need to be considered.

In line with the proposed timetable, a final draft Plan would be presented to the Board at its March 2026 meeting.

The Board:

• discussed the proposed structure, objectives and activities in the outline draft Corporate Plan 2026-27; and
• noted that the final Corporate Plan 2026-27 would be presented for approval at the March 2026 Board meeting.

9. Microsoft Licensing and Azure Services contract (SSRO 07-1225)

The Board considered proposals to tender a new four-year contract for Microsoft licensing and Azure services, in response to increased consumption costs and the planned roll-out of Copilot.

Subject to checks on procurement regulations resulting in no change to the proposed approach, the Board approved the tender and delegated authority to the Chief Executive to enter into the contract with the successful bidder.

The Board:

• approved the tender of a four-year contract for Microsoft licensing and Azure services provision; and
• delegated authority to the Chief Executive to enter into the contract with the successful bidder on behalf of the SSRO.

The MOD Observer left the room for the duration of Items 10 and 11

10. OSC Single Source Contract Regulations (SSCR) review (SSRO 08-1225)

The Board received an update from the Chief Regulatory Officer on the SSCR review, including recent engagement with the MOD and the work being progressed by the SSRO’s SSCR Programme Board.

The Board discussed the emerging scope of potential reforms and how to present and share the SSRO’s position most effectively, emphasising the importance of sequencing with MOD activity, and transparent communication and engagement.  The Board confirmed its support for the overall direction of travel, and agreed that more developed recommendations should be brought back to the Board in January 2026.

The Board confirmed its support for the proposed recommendations.

11. OSC 2026-27 Rates Assessment (SSRO 09-1225)

The Board received an update on the provisional Baseline Profit Rate (BPR), Capital Servicing Rates (CSRs), and Government Owned Contractor Rate (GOCR) for 2026-27.

The Board noted that the rates were provisional and subject to change, and discussed associated risks including the wider review of the regime and recent Ministerial changes.  The Board agreed that early engagement, clear communications and strong supporting material would all be important.  The Board thanked the team for its work to date.  The final assessment would be presented to the Board in January 2026 for its approval.

The Board considered:

• the provisional rates, which are indicative of the final assessment but were still subject to change;
• the risks associated with the ongoing review of the regime and ministerial changes, including the handling of communication; and
• the supporting materials.

The MOD Observer rejoined the meeting

12. Defence Insights briefing (SSRO 10-1225)

The Board discussed the Defence Insights briefing, which covered the regulatory landscape, alignment with efforts to reduce the burden of regulation, and the value of proportionate reporting requirements.

The Board discussed the Defence Insights briefing.

13. Report from the Audit and Risk Assurance Committee

The Chair of the Audit and Risk Assurance Committee provided a summary of the committee’s 19 November 2025 meeting.

The Board noted the update from the 19 November 2025 Audit and Risk Assurance Committee.

14. Future workplan (SSRO 11-1225) and reflections on meeting

The Board noted the summary of future Board meeting business and reflected on the business considered at the meeting.

15. Any other business

There was no further business.

The next meeting of the Board would take place on 20 January 2026.