Defence: 2.5% GDP Spending Commitment

Baroness Goldie Excerpts

Thursday 14th November 2024 Lords Chamber

[Baroness Goldie (Con)]

My Lords, the Prime Minister and the Chancellor’s continuing dithering on when the Government will spend 2.5% of GDP on defence has caused stasis in the MoD, which does not know what it can spend and when, a stagnation of the order book and disgruntled industry partners. What orders are currently being withheld, what is their value and to what extent are other customers overtaking the United Kingdom in the queue for supplies?

[The Minister of State, Ministry of Defence (Lord Coaker) (Lab)]

I do not agree with that caricature of what is happening. The Chief Secretary to the Treasury said at the weekend, and it has been repeated since, that we will reach 2.5% at a future fiscal event in the spring. The defence review is looking at what capabilities we need and we will then set that in the context of the 2.5% as we move forward. That sequencing is the proper way for us to go ahead. As it stands, no major projects are being disrupted as a result of the review.