Armed Forces Readiness and Defence Equipment
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John Healey
No, it is not. We have a much better solution, which is to legislate for an independent armed forces commissioner, like there is in Germany. They will be a voice for armed forces personnel and the families who support them, and will report to Parliament, not Ministers. In that way, we can reinforce the accountability of our military to this House and the public, as well as making it more responsive to those who serve. I will come to some points on that, if I may.
I pay tribute to all contributors to this debate, particularly those who are members of the two Committees on whose reports it is based. As they know, there are deep and long-running problems across defence, but I want to marshal my remarks into three main areas of findings in both reports: first, the hollowing out and underfunding of our armed forces; secondly, defence mismanagement and waste; and thirdly, the increasing lack of openness that we have seen recently from the Ministry of Defence.
On hollowing out and underfunding, my hon. Friend the Member for South Shields reminded us that it was the last Defence Secretary, the right hon. Member for Wyre and Preston North (Mr Wallace), who told this House last January that the armed forces have been “hollowed out and underfunded” over the last 14 years. These reports reinforce that sobering assessment of our UK military power and readiness.
The Defence Committee found that there are
“capability shortfalls and stockpile shortages”
across the forces, that resilience has been undermined by reductions, and that there is a
“crisis in the recruitment and retention of both Regulars and Reserves”.
Our armed forces are
“losing personnel faster than they can recruit them.”
The hollowing out and underfunding is getting worse, not better.
The Minister for Defence Procurement (James Cartlidge)
Will the right hon. Gentleman give way?
John Healey
The Minister can have his say later.
The Defence Committee report says that capability gaps are growing, reliance on allies is increasing, and we now have the largest ever deficit in the MOD’s equipment plan, at £16.9 billion. The PAC concluded that there is an “unmistakable deterioration” in the MOD’s financial position.
Like the right hon. Member for Rayleigh and Wickford, I have brought along the Red Book. I have studied tables 2.1 and 2.2. The Treasury and the House of Commons Library confirm a reduction in defence budgets, which will be cut by £2.5 billion in cash terms for the next financial year. These are the budgeted baseline figures on which defence can plan, procure, deploy and develop capabilities—not the one-off add-ons for specific purposes, such as nuclear or Ukraine, which are the figures that Ministers too often use to inflate the figures on total spending and disguise the real budgets. This is where the country is left after 14 years of Conservative failure on defence, and the right hon. Member for Rayleigh and Wickford said that this is wholly unworthy of a Conservative Government. I say it is wholly unworthy of a British Government.
John Healey
I will not. The Minister has 15 minutes in which to make his point. [Interruption.] Okay, I will give way.
James Cartlidge
I am very grateful to the right hon. Gentleman. I have a specific question: does he support our target of 2.5%?
John Healey
As has been pointed out in this debate, 2.5% is an aspiration for when economic circumstances allow—there is no timetable, no plan and no credibility. The last time this country spent 2.5% of GDP on defence was in 2010, under a Labour Government.
I turn to mismanagement and waste. My hon. Friend the Member for Hackney South and Shoreditch said that mismanagement and waste runs widely across defence. The PAC report found that only two of the 46 MOD equipment programmes are rated as “highly likely” to be delivered on time, on budget and on quality. Many defence procurement programmes are being delayed and are over budget. Ministers are failing British taxpayers and British troops but, most concerning of all, they have no plan to fix this. My hon. Friend said that one of our major concerns is that the MOD is putting off decisions—serious threats, serious problems and a serious lack of action from the Government to fix them.
The third area I want to mention is transparency. Civilian authority over our UK military involves accountability to elected civilian Ministers and elected Members of this House. Reducing MOD transparency is a theme that runs through both reports. The Defence Committee says it is “unacceptable” and the PAC says the MOD has refused even to publish a full equipment plan this year—that is the Minister’s responsibility—despite
“undertaking the same depth of financial analysis as in previous years.”
That should worry all Members, and it has been a growing concern of mine for some months. Whether it is Royal Navy ships’ days at sea or MACA agreements struck with other Departments, data that had previously been published and released to me is now being withheld. Instead of responding to my questions, Ministers are now saying, “We will write to you instead.” I am currently awaiting 26 letters, some of them dating back as far as December.
There are, of course, legitimate security reasons why some information cannot be released, but there are also obvious political reasons why a Government nearing an election would not want some of this information to be made public.
The Defence Committee expressed an important and clear warning in its report. Threats are increasing, just as concern is increasing about the state of our armed forces not just from the members of these Committees and from Members on both sides of the House but from Ministers, too. The Minister for Security, the Minister of State, Foreign, Commonwealth and Development Office, the right hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), and even the Defence Secretary are publicly challenging their own Government’s defence policy in the press. The Defence Secretary is making arguments in the Daily Mail that he failed to win with the Chancellor. I feel for the Minister for Defence Procurement, who is almost the last man standing by the Government’s defence policy.
Labour will always do what is required to defend the country. If we win the confidence of the British people at the next election, our pledge is that Britain will be better defended under Labour. First, we will reinforce the protection of the UK homeland. Secondly, we will ensure that our NATO obligations are met in full. Thirdly, we will make our allies our strategic strength. Fourthly, we will renew the nation’s moral contract with those who serve. And fifthly, we will drive deep reform of defence, and we will direct defence investment first to British jobs and British business. This is how Labour will make our country secure at home and strong abroad. We will consult across the House in doing so because we want our plan to be not just Labour’s plan but Britian’s plan to be better defended in future.
The Minister for Defence Procurement (James Cartlidge)
I am grateful to all hon. and right hon. Members for their contributions, and I thank all those on the Defence Committee and the Public Accounts Committee for their thorough reports on armed forces readiness, defence equipment and inventory management.
I have a lot of time for the right hon. Member for North Durham (Mr Jones), but I think he said that our armed forces are a gnat on the backside of an elephant.
Mr Kevan Jones
No, I did not. If the Minister had actually listened, what I said is that our contribution in the event of a crisis in the South China sea would be a gnat on the backside of an elephant. That is very different from what the Minister said.
James Cartlidge
I am grateful for the right hon. Gentleman’s clarification. Either way, I think we can all agree that it is important that we understand the extent to which our armed forces are ready and are out there serving the country as we speak.
Our continuous at-sea nuclear deterrent is entering its sixth decade of service, and our armed forces have helped us to become Ukraine’s most front-footed ally. We have trained more than 60,000 Ukrainian military personnel since 2014, and we are delivering more than £7 billion of military aid to Ukraine within our overall aid package worth almost £12 billion. That support is unwavering, with the recent announcement of our latest £2.5 billion package of military support for Ukraine being a £200 million uplift on the previous two years. Beyond our support for Ukraine, our armed forces are participating in every single NATO mission.
Sir Julian Lewis
I am grateful to the Minister for allowing me to intervene. I did not apply to speak in this debate because I could not be sure that I would be here at the end. Will he impress upon the House how our aid to Ukraine is vital because, if Ukraine successfully thwarts Russia, all those dread scenarios about an attack on NATO will not happen? Similarly, although President Trump is a worry, it is at least a relief that he has begun to say that, provided Europe does its bit, he will continue with America’s support for NATO, should he be elected.
James Cartlidge
My right hon. Friend makes an excellent point. The hon. Member for Rochdale (George Galloway) accuses us of imperialism in how we deploy our armed forces, but the whole purpose of our support is precisely to help Ukraine resist the imperialism of the Kremlin that he has shamefully supported while condemning what he calls the “Zelensky regime”. We heard him say it, and it is absolutely shameful.
James Cartlidge
The hon. Gentleman did not give way to anyone so, if he will forgive me, I will continue.
My right hon. Friend the Member for New Forest East (Sir Julian Lewis) made an excellent point that we have heard a change of tone from Donald Trump in recent days.
Mrs Lewell-Buck
The Minister says it is important to understand how ready our forces are, so can he tell us why key information on readiness is no longer published and why none of it was shared with our Committee?
James Cartlidge
I am happy to engage with the Committee, as I did during the week on artificial intelligence. There will always be a balance to be struck between what we can share and where we have to recognise the sensitivity of defence.
From the High North to the Mediterranean, we are deploying 20,000 service personnel from our Navy, Army and Air Force on the NATO exercise Steadfast Defender, which is one of the alliance’s largest ever training exercises. It is a valuable opportunity to strengthen interoperability between us and our allies.
I am happy to report that, as the right hon. Members for Wentworth and Dearne (John Healey) and for Warley (John Spellar) said, overnight we have had confirmation that a new defence and security co-operation agreement has been signed with Australia, which will make it easier for our armed forces to operate together in each other’s country. It will also help facilitate UK submarine crews to visit Australia as part of AUKUS.
A large number of points have been made in this debate, and I will try to take as many as I can. The Chair of the Defence Committee, the right hon. Member for Horsham (Sir Jeremy Quin), and several others, particularly the right hon. Member for Warley, talked about the importance of industrial resilience, and I totally agree.
The right hon. Member for Warley made an important point about finance. We must not forget the private sector’s role in investing in defence. We have seen commentary on environmental, social and governance, on which he wants to see cross-Government work. I am pleased to confirm that, with my Treasury colleagues, we held a meeting at Rothschild’s in the City to see what more we can do, and I am confident that we will be saying more on this important point about how we make the case for investing in defence as a way of investing in peace.
Mr Francois
On ESG, there have been many references to the second world way today. Is it worth reminding the House and the country that, if we had not had a defence industry building Spitfires and Hurricanes in 1940, this debate would not be taking place? In fact, this place would no longer exist.
James Cartlidge
My right hon. Friend makes an excellent point. It shows why I want to see us supporting our sovereign capability, because where the Spitfire was there in the 1930s, we hope that the global combat air programme will be there in the 2030s.
James Cartlidge
As my right hon. Friend has already intervened, I hope he will allow me to make some progress and refer to comments from colleagues.
Obviously, there has been particular debate about spending. The shadow Secretary of State was unable to answer whether Labour would match the figure of 2.5%, but a number of my colleagues wanted us to go further and faster. This point was put well by the hon. Member for Tiverton and Honiton (Richard Foord). The Chair of the Defence Committee and others have suggested that we should look back to the sort of GDP figures in the cold war, although they did not necessarily say that we should go to exactly those amounts. However, as was said by the hon. Gentleman, who I believe was in military intelligence, in those days almost all of eastern Europe was an armed camp full of Soviet divisions, whereas now those countries are in NATO, so the situation has changed profoundly.
As was rightly said by my right hon. Friend the Member for Elmet and Rothwell (Sir Alec Shelbrooke)—one of my predecessors as Minister for Defence Procurement—if we increase defence by a significant amount, the money has to come from somewhere. An increase from the current level of about 2.3% to 3% equates to £20 billion, which is not a small amount of taxpayers’ money. Even an increase to 2.5% equates to an extra £6 billion. So it is Government policy to support that but to do so when we believe the economy can support it on a sustained basis.
My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) made a passionate speech about how there had, in effect, been a cut to defence spending in the Budget, and several other Members said the same. I do not agree, although I accept that there is a debate about it. It is about the difference between the main estimate and the supplementary estimate, and some people have said it is about the inclusion of nuclear. To me, the nuclear deterrent is fundamental to defence, so of course it should be in the defence budget. We are not going to take out GCAP or frigates, and we are certainly not going to take out the nuclear deterrent, which is at the heart of the UK’s defence.
Sir Jeremy Quin
I like a lot of what the Minister is saying. It is right to say that we have, in Poland, Finland and Sweden, allies in NATO that produce great capability in terms of dealing with the threat from Russia, but since 1989 China, now one of the two biggest economies in the world, has gone on to be spending £232 billion alone on defence—and that is just the official number. We also now have a nuclear armed North Korea, with Iran making its way in the same direction. The world picture is darkening. That may not necessarily “directly impact” us, to use the words of other hon. Members, although I think it does, but it has indirect impact on some of our allies and on where they need to place their resources. It is a real concern and we should not forget that.
James Cartlidge
I am grateful to my right hon. Friend for that. It shows why I have repeatedly said that we need to reform defence procurement because of the need to stay competitive with our adversaries.
I agree with the Chair of the PAC, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), and my hon. Friend the Member for Devizes (Danny Kruger), that we cannot just look at what we want to spend and at the future aspiration; we have to look at how we spend the money that we have better. That is why on 28 February I announced our new integrated procurement model, to completely overhaul our approach to acquisition. I said in my speech—and I stand by this—that the current delegated procurement model, under the Levene reforms, has created an inadvertent tendency towards over-programming: as soon as there is financial pressure on the equipment plan, such as we have had through inflation, the single services compete to get their capability on contract. By contrast, the very definition of our integrated approach is pan-defence prioritisation, as we are seeing in practice in our pending munitions plan, which will address many of the concerns of right hon. and hon. Members about getting our industry up to spec in terms of missiles and other key munitions. Let me be clear that such prioritisation would be challenging even if we went to 2.5%, such is the nature of defence.
A particular priority of our new acquisition model, as was referred to by the Chair of the Defence Committee, is spiral development: accepting 60% or 80% of requirements rather than 100% exquisite. The key to that is ramping up our engagement with industry, so we have held far more engagement events with industry at a secret level. Just this week, for example, we have held engagement between the strategic command and industry about cyber and electronic warfare—at a secret level, because we want to empower industrial innovation.
I have also said that exports are a key part of getting our industrial base as resilient as possible. So I am delighted to confirm the overnight news that BAE Systems will partner in Australia to build its nuclear-powered submarines. This is a major moment for AUKUS, and the collective submarine-building will support 7,000 additional British jobs across the programme’s lifespan.
My right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and the hon. Member for South Shields (Mrs Lewell-Buck), who this week chaired the Sub-Committee on AI, both rightly stressed the importance of technology. To see that, one need only look at the situation in Ukraine and at the extraordinary propensity of electronic warfare, which underlines how the battle space has changed. So a key part of our system will be about learning the lessons from the frontline as rapidly as possible, as we spiral our own developments in response. We are learning those lessons. For example, as part of its drive to incorporate autonomous platforms flying alongside crewed fighters, the RAF is now progressing to procure drones to overwhelm an adversary’s electronic warfare defences. That underlines an important point: that advantage in future warfare and uncrewed combat, will not necessarily be gained by individual platforms and technologies; it will be their smart integration, across crewed and uncrewed systems, that will enable us to develop a force fit for the future. That is why I believe we need an integrated approach to procurement.
To conclude, the brief snapshot of military exercises that I have outlined today does not do justice to the breadth and reach of our armed forces. They are more than ready. They are out there, deployed all over the world, keeping us safe and defending our interests. Meanwhile, the reforms we have made to procurement will help us adapt to emerging threats and evolving technological possibilities. That is a key lesson from Ukraine and from our Defence Command Paper.
This Government will continue to back our armed forces with record levels of defence spending, an ambitious 10-year equipment plan and by forging a new partnership with industry to co-develop cutting-edge capabilities. It is a plan that will ensure that our defence industrial base is more resilient and our armed forces are better equipped. It is a comprehensive strategy for our national security, and I commend it to the House.