I, too, thank the House of Commons Defence Committee for producing this important report and giving us the platform to discuss some of the key defence issues facing the alliance and the United Kingdom today. The Chair of the Committee introduced the debate in characteristically eloquent fashion, on which he was complimented by a number of hon. Members. I will add to those compliments and point out that I think he gave a very forceful opening speech.
The report makes interesting reading. It argues in paragraph 102 that events in Ukraine were a “wake-up call”, and for reasons that I will come on to, I agree. As the Committee acknowledges in paragraph 97, these issues are not just a matter for the Ministry of Defence, but for the whole Government. The pan-governmental national security strategy will need to be updated to take account of changes to the international situation over the last five years. The importance of the NSS was referred to by the Committee Chair, as well as by my hon. Friends the Members for Broadland (Mr Simpson), for North Wiltshire (Mr Gray) and for Stroud (Neil Carmichael). Although this debate has understandably focused on the strategic defence and security review, the next SDSR must also take account of any changes to the NSS into which it should dovetail. As the Committee recognises, events in Ukraine have shone a light on different types of conflict that the NSS must take into account as it develops strategies to mitigate the challenges we face.
The last SDSR was written while our forces were heavily engaged in Afghanistan. We have now brought our combat troops home, but as we move to an era where there is a continuing challenge to the rules-based international order, we must examine the full scope of defence to ensure that we are best prepared. Equipment, people and investment are key elements, but mindset is important too.
Arguably, the last 10 years or so have seen us become increasingly proficient at conducting combat operations with a counter-insurgency element, at reach, against a technologically inferior but none the less determined enemy. In that context I pay tribute again to those who served us in Afghanistan. We asked much of them and they did us proud. I was at the last homecoming parade into the Palace of Westminster for the troops of 102 Logistic Brigade and the 20th Armoured Infantry Brigade. It was a humbling experience and I pay particular tribute to the 453 service personnel who lost their lives in that conflict. Across the whole House we will surely agree that they must never be forgotten.
We now need to rebalance and become highly proficient in a range of potential operations across the globe, and against a range of potential threats. We will need to think differently; we may need to react quicker. We will need to look into the future and seek to prepare now. The world does not stand still and events will not give us rest: there is ISIL in the middle east, referred to by several hon. Members; Boko Haram in Africa; and of course our commitment to combat Ebola in Sierra Leone via Operation Gritrock. Having visited our troops just prior to Christmas—the Secretary of State visited more recently—I place on the record my enduring admiration for our armed forces personnel. They have been prepared to take risks in deploying to west Africa to fight this awful disease, not just to defend the Sierra Leoneans but us here at home.
On the defence review itself, there is an old saying about how to get to Dublin. In short, I would rather start an SDSR from where we are now than where we were in 2010. The chaos we inherited from Labour has gone and the budget is now back in balance. The hon. Member for North Durham (Mr Jones)—he and I have been sparring partners for some years—refused to commit the Labour party to spending more than 2% on defence beyond 2015-16, if it was elected. In that sense, he does not go beyond us. The giveaway was when he said that Labour would conduct a zero-based review. In essence, that means he cannot commit to anything. That is what a zero-based review means. He told the House on the one hand that he would not promise anything he could not deliver, but on the other hand he said that his party would conduct a zero-based review, in which it cannot really promise anything. It is important that the House understands the distinction between the positions held by the Opposition and the Government.
Our equipment programme—a substantial investment of some £163 billion over 10 years on equipment and support—will ensure that our armed forces retain a formidable range of cutting-edge capabilities and the ability to project power across the globe. This investment is not only securing the best possible military capability, it is also helping to secure UK jobs and growth. The UK defence industry indirectly employs more than 160,000 people, with a turnover of £22 billion.
A zero-based budget looks at efficiencies and how to spend money better. Does the Minister agree with the Chancellor’s figures for 2016 to 2020, when something like £9 billion has been projected to meet the cuts—[Interruption.] The Whip has not been here, so he can stop chuntering from a sedentary position. Does the Minister agree with the Chancellor, yes or no?
What I agree with is that we inherited a chaotic defence budget from the Labour party. That is what it bequeathed to us and that is what we have had to deal with from day one. I will come on to our position on the 2% commitment, which I believe is superior to the hon. Gentleman’s position.
Crucially, we are making full provision for the successor deterrent system. It is a shame that the hon. Member for Barrow and Furness (John Woodcock) is no longer in his place, as I wanted to tell him two things. I will be visiting Barrow very shortly. We will confirm the date with him in the usual way, but I want to see Barrow for myself. He also asked for a commitment, which I am happy to give him, to the seventh Astute submarine. We are determined that we will complete the seven boats in the Astute programme before transiting to a successor programme based on continuous-at-sea deterrence with four deterrent submarines.
We are also significantly increasing our investment in cyber-security, an issue raised by a number of hon. Members. I can assure the House that this does not relate only to defensive cyber. We need to ensure our armed forces are equipped with cutting-edge capabilities across all environments.
On the NATO summit and events in Ukraine, we have deplored Russian aggression in Ukraine from the outset. We urge all sides to take the necessary steps to implement the second Minsk agreement of 12 February, which provides a framework for stabilising the situation in eastern Ukraine. Russia must abide by its commitments at Minsk. This means making the separatists withdraw their heavy weapons, stopping continued separatist attacks so that an effective ceasefire can take hold, and allowing effective monitoring to take place. There have been some early encouraging signs over the past few days, with a lull in the level of fighting in the east and some heavy weapons relocated, but we have seen this pattern before. We will continue to monitor the situation and hope that it is not reversed. It is important that we look at actual deeds in this context and follow them closely.
Unity in the alliance is the best response to these challenges. We demonstrated that at the Wales summit, in particular with the readiness action plan, including the development of a very high readiness joint task force. On 5 February this year, at the NATO defence ministerial, the UK committed to lead the VJTF in 2017, as one of six framework nations, alongside France, Germany, Italy, Poland and Spain. The Wales summit saw the alliance commit to assurance measures for our eastern allies. Our contribution will be even greater in 2015 than last year, with over 4,000 UK personnel set to deploy on various exercises in eastern alliance territory. In particular, Exercise Dragon will be a divisional level exercise in Poland—something that I note the Chairman of the Select Committee called for in his speech. It is due to take place in September and the UK will contribute 1,000 troops, plus armoured vehicles. We will also participate in Baltic air policing. Four Typhoons will operate alongside Norwegian aircraft between May and August 2015, working to secure NATO’s airspace over our Baltic allies, demonstrating alliance solidarity in practice.
The Wales summit also committed NATO allies to reverse the decline in defence spending. The UK is one of the few NATO nations to have consistently spent 2% of GDP on defence. Importantly, we also exceed the target to invest more than 20% of our budget on equipment. We have the second biggest defence budget in NATO and the largest in the European Union. These are important points that we should not forget. In financial year 2015-16, we will maintain that 2% of spending. Following 2015-16, that will be subject to the next spending review, which is due to take place after the election, but it will not be a zero-based review, in the way that Labour argues.
No. The hon. Gentleman has already had his go and I have three minutes left.
The UK has committed to providing additional non-lethal support to the Ukrainian Government to help their forces deal with the pressures they are facing. Such support is not new, with the nature of the UK’s support remaining non-lethal. This forms part of a wider Government effort to support Ukraine and ensure a robust international response to Russia’s aggression. It is imperative that the United Kingdom stands by its NATO allies in delivering a unified message to Russia about its unacceptable behaviour and disregard for the international rules-based system.
Let me conclude by saying that it is important to remember that the Committee’s report was written last July, prior to the summit, but recent events in Ukraine have indeed been a wake-up call. I reiterate that in the light of this we must look at the SDSR and the NSS. We need to update both, and they must be complementary. The Committee recommended changes in the alliance, some of which have already been implemented. The Committee sought improvements on NATO’s rapid reaction force; the VJTF will contribute to this aim. The Committee wanted large-scale military exercises; Exercise Dragon this autumn will be a divisional sized exercise, consisting of 10,000 alliance personnel, 1,000 of whom will be British, who will be supported with a range of armoured vehicles. The Committee recommended that NATO address its vulnerability to asymmetric attack; work is in train that is seeing NATO significantly improve its resilience to hybrid warfare, not least in cyber, as I have already explained. Units such as the 77 Brigade, to which my hon. Friend the Member for Newbury (Richard Benyon) referred and which is based in his constituency, will also play an important part in that, ensuring that such threats can be covered off.
The Committee is quite right to draw the House’s attention to what has been happening in Ukraine. It is right that we watch these events closely and take nothing for granted. Defence is, and remains, the first duty of Government, so now is not the time to slacken. We must stay the course, implement the decisions from Wales and demonstrate our commitment to NATO. We must at all times remember the importance of solidarity in the NATO alliance. NATO has formed the bedrock of our security since 1949. It still does. We remain fully committed to our NATO allies, and everyone should understand that. NATO has helped to keep us safe and free. It has been committed to us, and we remain committed to it.
Question deferred until tomorrow at Seven o’clock (Standing Order No. 54).