Grant Shapps Resigns from Defence Firm After Breaching Post-Ministerial Ethics Rules

Former Defence Secretary Found to Have ‘Allowed Perception of Impropriety to Develop’

Former Conservative Defence Secretary Sir Grant Shapps resigned on April 30 from his role as chair of Cambridge Aerospace after an official review found he had breached post-ministerial conduct rules — including ignoring warnings to correct public profiles that described him as heading a defence company.

The Appointment and Its Conditions

Shapps, 57, who served as Defence Secretary under Rishi Sunak and held cabinet posts under four Conservative prime ministers, took up the chairmanship at the aerospace start-up after leaving government. Under the Advisory Committee on Business Appointments (ACOBA) rules, former ministers are prohibited from lobbying government for two years after leaving office and must seek ACOBA approval before accepting outside employment.

In November 2024, ACOBA approved his role on a strict condition: his work must remain limited to civilian aerospace only. That boundary was subsequently crossed when Cambridge Aerospace secured a multi-million-pound Ministry of Defence contract for Skyhammer interceptor missiles.

Warnings Ignored, Profiles Uncorrected

Sir Laurie Magnus, the Independent Adviser on Ministerial Standards, revealed in a letter dated May 19 that Shapps had been warned repeatedly to correct public-facing profiles — including on LinkedIn — that described him as chair of a defence company. He did not act on those warnings.

Magnus concluded that Shapps had “allowed a perception of impropriety to develop”, had “neglected to seek fresh advice on a changing role”, and had “failed to follow ACOBA’s advice to correct public domain information” about his position at Cambridge Aerospace.

Shapps Denies Substantive Wrongdoing

In a letter dated May 12, Shapps acknowledged that he should have sought updated guidance as the company’s focus shifted toward defence. He attributed the shift partly to a changed global security environment, citing recent events involving Iran, which he said had “markedly” blurred the line between civilian and military aerospace.

He apologised and said he “fully accepts” the procedural failure. However, he stated “without qualification” that he had no involvement in the pursuit, negotiation, or award of the MoD contract, and was only “abstractly aware” of the contract process.

Shapps further maintained that he never used privileged information from his time in office, did not lobby the government, and did not deploy his ministerial contacts to influence policy or secure business for the company.

Background

Shapps served as Conservative MP for Welwyn Hatfield until losing his seat to Labour’s Andrew Lewin at the 2024 general election. The publication of the correspondence between Shapps and ACOBA came on Tuesday evening, alongside the letters from Sir Laurie Magnus.

The case renews scrutiny of the revolving door between senior government roles and the defence industry — and of whether existing post-ministerial oversight mechanisms carry sufficient enforcement power to deter breaches.