Armed Forces Personnel: School Fees
Debate between Baroness Goldie and Lord Coaker(3 weeks, 5 days ago)
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Baroness Goldie
To ask His Majesty’s Government what engagement they have had with armed forces personnel whose children are currently educated at fee-paying schools to ascertain the impact on such families of imposing value added tax on school fees.
The Minister of State, Ministry of Defence (Lord Coaker) (Lab)
My Lords, the Ministry of Defence is continuing to monitor the impact of the Government’s change to VAT rules for private schools on service personnel who claim the continuity of education allowance. The Ministry of Defence recalculated CEA rates based on the new fees published by schools for January 2025, and this increased the income tax-free amounts available to claimants.
Baroness Goldie (Con)
I thank the noble Lord. I am aware that the continuity of education allowance has been uprated, but that still leaves a parental contribution. What we do not know is by how much the parental contribution will increase as a consequence of VAT on school fees. Indeed, even the combined talents of Sherlock Holmes and Einstein would fail to penetrate MoD methodology on this issue. We know that Armed Forces personnel will have to pay more in school fees. Can the Minister answer a simple question? How much more will they be paying?
Lord Coaker (Lab)
I thank the noble Baroness for her question. I will always check the figures and, indeed, check hers, as she will know. She will also know that the allowance contributes towards the cost of boarding school education, with the MoD paying a fixed rate of up to 92% of fees for children attending state-maintained schools and up to 90% of fees for those attending independent schools. I would say to her that, in essence, this is exactly the same policy as the previous Government had.
Fiscal Policy: Defence Spending
Debate between Baroness Goldie and Lord Coaker(1 month ago)
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Baroness Goldie (Con)
My Lords, last week I raised my profound concerns about the funding fog surrounding defence. Specifically on the Government’s fiscal policy, I want to ask the Minister the following questions. First, given the recent gloomy projection by the CBI on job losses, what discussions have the Government had with major defence suppliers to assess the impact of the NIC increase on their workforce? Secondly, if the Government really value our Armed Forces personnel, why are they landing families with the full impact of VAT on private school fees, when the continuity of education allowance will meet only part of that increase—and yet they are prepared to exempt United States armed forces personnel in this country from paying VAT on private school fees?
The Minister of State, Ministry of Defence (Lord Coaker) (Lab)
I thank the noble Baroness for her important questions. We are working closely with NATO in developing industrial capability. In particular, we are looking at how we develop interoperability between NATO partners—which, as the noble Baroness will know from her work, is an important consideration—to give us the capabilities we need.
The noble Baroness will know that the Government have increased the continuity of education allowance to meet 90% of the cost of school fees, which is line with the consistent use of that policy to meet school fees. On the US military exemption, the VAT rule applies to all businesses supplying services to US forces, so there has been no change in that regard.
Major Defence Contracts
Debate between Baroness Goldie and Lord Coaker(1 month ago)
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Lord Coaker (Lab)
We are supporting the SME sector by spending billions of pounds on defence. The noble Baroness makes an important point about the importance of small and medium-sized industries. We often talk about the primes—the really big companies— but they are often supported by small and medium-sized businesses, which are extremely important, along with ensuring we get investment across the country.
I will tell noble Lords the other thing that needs to be done. For decades in this country we have had a shortage of skilled workers and skilled apprenticeships, and certainly small and medium-sized businesses need help to recruit the skilled labour they need to deliver the products that they have on offer.
The final point I will make is that, clearly, we are now in a period of transition from pre Ukraine to post Ukraine. That obviously results in looking at who we are buying from and the sorts of things we are purchasing, and the defence review will deal with some of that as well.
Baroness Goldie (Con)
My Lords, further to the point raised by the noble and gallant Lord, Lord Stirrup, it is the case that our defence industry sector has never been in greater need of the skills and talents of our brightest students, and the Minister failed to address the point specifically raised by the noble and gallant Lord. This House wants to know what are the Government doing to address the unacceptable intolerance whereby companies are hounded off campuses and barred entry to careers fairs? In particular, what are the Government doing to ensure that this obstruction to the supply of talent to the defence industry sector is removed?
Lord Coaker (Lab)
I am sorry if I did not answer the point raised by the noble and gallant Lord. The point the noble Baroness makes is extremely important, and she asks what the Government have done about it. The Secretary of State for Defence, and I think the Business Secretary, wrote to the universities concerned and asked them to ensure that obstructive factions within the student unions in their universities did not prevent the legitimate recruitment, with respect to the RAF, and the legitimate activities of defence companies as well to try to recruit. It is extremely important for all universities to understand that of course we accept the right of students to protest, and all the rights and freedoms that come under a democracy—that is what we are standing for in many of the conflicts in which we are involved across the world. But with that comes the universities’ responsibility to do what they can to ensure that people pursuing legitimate activities—which will help the defence and security of our nation and our allies—are protected, and this Government will do all they can to ensure that they are.
Undersea Internet Cables
Debate between Baroness Goldie and Lord Coaker(1 month, 2 weeks ago)
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Baroness Goldie (Con)
My Lords, the principal response to this threat in the Baltic is coming from NATO. May I press the Minister a little further on the contribution that United Kingdom naval assets are making to that endeavour? In particular, the planned multi-role support ship was always intended to be an important contributor to that. May I ask for a report on progress on that important new addition to the fleet?
Lord Coaker (Lab)
If I understand the noble Baroness rightly and she is talking about the provision of a second additional ship to support and augment the ship “Proteus”, that will be part of the defence review. On the other assets that she talks about with respect to the Baltic, she will know that in December 2023, under the previous Government, a huge maritime collection of ships across NATO and JEF was sent to the Baltic, including UK maritime assets and UK surveillance aircraft. There was a further initiative in June 2024, again under the previous Government, and just recently we have had the announcement of Operation Nordic Warden, as I have said. All the way along, there have been significant UK contributions.
Another thing that is important, since we are often questioned about this, is that it is not only the contribution that we make in terms of our assets but the thought leadership, co-ordinating power and other leadership potential that the UK provides. Let us remember that it was in 2014, under the previous Government, that JEF was set up under UK leadership. It has worked particularly well. We should sometimes recognise what this country contributes to the defence of the world as well as some the challenges that face us.
Air Defence Capabilities
Debate between Baroness Goldie and Lord Coaker(1 month, 3 weeks ago)
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Baroness Goldie
To ask His Majesty’s Government what progress has been made in the technological advancement and modernisation of the United Kingdom’s air defence capabilities.
The Minister of State, Ministry of Defence (Lord Coaker) (Lab)
My Lords, the UK continuously reviews our integrated air and missile defence requirements to ensure that we are adequately defended against the evolving threats that we face. We are investing in new technologies, including the DragonFire directed energy weapon, to defeat threats such as drones, and enhancing our capabilities through the T45’s ability to defend against anti-ship ballistic missiles. Further development in IAMD capability is being considered in conjunction with the strategic defence review to ensure a coherent approach across defence and wider government.
Baroness Goldie (Con)
I thank the Minister for his response. Recent very public concerns about our air defence capabilities have been amplified by our European and NATO partners. The urgency of the situation is highlighted by the experience of Ukraine. Government entreaties to await the SDR report simply do not cut it. Reassurance is needed now, but I accept that the picture is complicated so will the Minister write to me with a stocktake of the current situation and details of the modernisation proposals, whatever they are, and then we can place that letter in the Library?
Lord Coaker (Lab)
I thank the noble Baroness for raising the incredibly important subject of air defence. She is quite right to point out the impact on Ukraine; 12,000 missiles have been fired at Ukraine by Russia, showing the importance of air defence now. It has been raised in report after report. I will of course write to her and put a copy in the Library, as a current stocktake of where we are, but we are already taking action. We are seeing the development of ORCUS and anti-drone technology to protect airfields; the enhancement of Sea Viper, which is the T45 missile that allows us to defend against ballistic missiles; and developments such as the DIAMOND initiative, which is bringing European countries together to get a ground-based air missile defence system. A number of initiatives are already being taken, but I agree with the noble Baroness. I will write to her so that we have a stocktake of that and so that the information is available to all Members of this House.
Defence: 2.5% GDP Spending Commitment
Debate between Baroness Goldie and Lord Coaker(2 months, 2 weeks ago)
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Baroness Goldie
To ask His Majesty’s Government, further to the remarks by Lord Coaker on 14 November (HL Deb col 1927), whether they are planning the fiscal event next spring which is to set the pathway to spending 2.5 per cent of gross domestic product on defence to take place before they publish the Strategic Defence Review.
The Minister of State, Ministry of Defence (Lord Coaker) (Lab)
My Lords, we remain committed to setting out a road map for defence spending to reach 2.5% of GDP. The strategic defence review is expected to complete next spring. We will set out the pathway to spending 2.5% at a future fiscal event.
Baroness Goldie (Con)
I thank the noble Lord, and certainly, we have previously been told that the SDR will spell out what defence needs and that a spring fiscal event will confirm how and when we are going to pay for it. In a Written Statement yesterday, the Chancellor implied that there will not now be a spring fiscal event. Apparently, the OBR will publish in March an economic and fiscal forecast, to which the Chancellor will respond with a parliamentary Statement. This does not seem to be the same as a spending review. We need to cut through this fog of confusion. May I ask the Minister—I am very happy if he wants to double-check the position with the Treasury—will the forecast and parliamentary Statement to which I referred clarify when the 2.5% of GDP spend on defence will apply? If not, what will clarify it, and when?
Drones: RAF Bases
Debate between Baroness Goldie and Lord Coaker(3 months ago)
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Lord Coaker (Lab)
I thank my noble friend for the question. We are working with our international partners, including the United States. Of course, we are trying to ensure that we have all the equipment that is needed to tackle any of these attacks that we face. Similarly, with respect to the aircraft carrier, I can say that a civilian drone was observed in the vicinity of HMS “Queen Elizabeth” on 22 November, but it got no closer than 250 metres. I can reassure my noble friend that we take all of this seriously, and we will work closely to ensure the safety of all our sites.
Baroness Goldie (Con)
My Lords, I am aware that there is a series of very effective assets which can be deployed to air defence. I do not expect the Minister to comment further on those, but I will ask him, specifically, how the ground-based air defence system is progressing.
Lord Coaker (Lab)
That is obviously a matter of real importance, and the defence review is looking at what we should do with respect to air defence in the round, including defence of the homeland, as the noble Baroness asks.
Defence: 2.5% GDP Spending Commitment
Debate between Baroness Goldie and Lord Coaker(3 months, 2 weeks ago)
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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.
Decommissioned Nuclear-Powered Submarines
Debate between Baroness Goldie and Lord Coaker(4 months, 1 week ago)
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Lord Coaker (Lab)
I may need to write to the noble Lord. I usually like to be able to respond directly to questions, but I do not want to get the planning process wrong or give the wrong answer on whether primary or secondary legislation is needed. I will respond to him with a letter to make sure that I am accurate and will place a copy in the Library so that it is available to all noble Lords.
Baroness Goldie (Con)
My Lords, on 20 May 2021, the Conservative Government published an update on the submarine dismantling project, stating that 90% of the decommissioned submarine materials could be recycled. Is the Minister in a position to confirm that his Government are committed to retaining that target? On the experience of decommissioning HMS “Swiftsure”, which is very well advanced, can he also indicate whether there is any proposal to secure an engineering impact assessment to understand how the process for future submarines might be expedited?
Lord Coaker (Lab)
I pay tribute to the work that the noble Baroness did to try to speed up some of these processes. She asked two very pertinent questions. For “Swiftsure”, we retained the 90% recycling target. She will know that once a decommissioned submarine such as “Swiftsure” is defueled, there is an initial phase that takes the nuclear material out. Then there is an intermediate phase, which is followed by dry-docking—which is where “Swiftsure” is—for the rest of the submarine to be recycled. We expect 90% of that to be recycled. The whole point of “Swiftsure” is that it acts as a demonstrator project so that we can learn from how that was done—what worked and what perhaps could have been improved—and then apply that to all the other submarines that have been decommissioned.
Armed Forces Act 2006 (Continuation) Order 2024
Debate between Baroness Goldie and Lord Coaker(4 months, 1 week ago)
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The Minister of State, Ministry of Defence (Lord Coaker) (Lab)
My Lords, the purpose of this order is to continue in force for another year the legislation that governs the Armed Forces Act 2006. That body of legislation provides the legal framework for our brave service personnel to continue to operate throughout the world wherever they are needed. The act of yearly renewal reflects the constitutional requirement, which stretches back to the Bill of Rights 1689, that His Majesty’s Armed Forces may not be maintained without Parliament’s consent. Further, there is a five-yearly renewal by Act of Parliament, which is the primary purpose of the Armed Forces Acts. The latest Armed Forces Act was in 2021 and the next is required by the end of 2026.
However, between these Acts there must be an annual renewal by Order in Council. This is the purpose of today’s draft order, which is necessary for the Armed Forces Act 2006, as amended by the Armed Forces Act 2021, to remain in force until the end of 2025. If the Order in Council is not made before the close of 14 December 2024, the 2006 Act will automatically expire, effectively ending the powers and provisions to maintain the Armed Forces as disciplined bodies.
As a reminder to noble Lords—and as many noble and gallant Members of your Lordships’ House will already know—those serving in His Majesty’s Armed Forces do not have contracts of employment and, therefore, have no duties as employees. Instead, service- persons have an obligation as members of the Armed Forces to obey lawful orders as set out in the 2006 Act, which provides nearly all the provisions for the existence of a system for the Armed Forces of command, discipline and justice.
If the Act were not renewed, commanding officers and the court martial would no longer have the power to punish or discipline servicepersons for infractions of the rules, irrespective of how minor or serious the matter might be. Discipline is fundamental to the operational effectiveness and efficiency of any professional military force. It ensures team cohesiveness and effectiveness, efficiency in executing orders and confidence in the chain of command, while encouraging and reinforcing self-discipline. Such qualities have proved vital in underpinning the professionalism and capabilities of our Armed Forces.
I acknowledge that, as of today, we inhabit a world that is more dangerous than at any time since the fall of the Soviet Union in 1991, witnessing as it has the return of great power politics. However, that is not to say that we are less safe. After all, we have seen the growth and strengthening of the Euro-Atlantic alliance, with new and powerful NATO members welcomed into its ranks, while we continue to support, equip and train Ukraine in its fight against Russia, which has witnessed Putin fail in every one of his strategic aims in that country.
In the Middle East, we continue to work closely with allies and partners on aid deliveries to Gaza, supporting the Lebanese army, training the Iraqi security forces and ensuring freedom of navigation. In the Indo-Pacific, we have AUKUS and GCAP working alongside our allies to ensure stability in that region and provide a strong deterrence to would-be aggressors.
No Government can do this without the men and women of our Armed Forces and the civilian staff who support them. We also cannot do it without Armed Forces’ families, who sacrifice so much and move so often to support our national security. We should also remember our veterans. As a Government, we have committed to strengthen the nation’s contract with those who serve, their families and, as I said, veterans, including by putting the Armed Forces covenant fully into law and by appointing an Armed Forces commissioner to be a strong, independent champion for serving personnel and their families.
Therefore, we ask that His Majesty’s Armed Forces receive the full support of this Committee with approval of this draft continuation order. This will provide a sound legal basis for our Armed Forces to continue to afford us their indispensable protection. With that, I beg to move.
Baroness Goldie (Con)
My Lords—oh, I apologise to the noble Baroness, Lady Smith; I am so eager.
Combat Air Capability
Debate between Baroness Goldie and Lord Coaker(4 months, 3 weeks ago)
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Baroness Goldie
To ask His Majesty’s Government what assessment they have made of the United Kingdom’s future combat air capability.
The Minister of State, Ministry of Defence (Lord Coaker) (Lab)
My Lords, our assessment of the future combat air capability we require is informed by consideration of the future threat environment and strategic context. Consequently, the Global Combat Air Programme has been designed to utilise advanced capabilities, including next-generation sensors, weapons and data systems. Networked interoperability with allies and partners will be key. In the meantime, we continue to invest in our current fleet, which remains highly capable.
Baroness Goldie (Con)
I thank the noble Lord for that part-reassurance. The previous Government’s commitment to the Global Combat Air Programme—GCAP—was clear and we were doing it in partnership with Italy and Japan. However, with the best of intentions, the current Government’s position is opaque. Can the noble Lord at least reassure the House that the Government understand the need to plan now for a successor to Typhoon and the extent to which UK industry is supporting thousands of jobs across the UK—not least, for example, at Leonardo in Edinburgh—that depend on this programme proceeding?
Ministry of Defence: Expenditure
Debate between Baroness Goldie and Lord Coaker(7 months ago)
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Baroness Goldie
To ask His Majesty’s Government whether they have made any decisions to pause expenditure on Ministry of Defence programmes; and, if so, on which programmes.
The Minister of State, Ministry of Defence (Lord Coaker) (Lab)
Work continues on our programmes within existing allocated funding as the strategic review progresses. This review will consider the threats Britain faces, the capabilities needed to meet them, the state of the UK Armed Forces and the resources available. It will set out a deliverable and affordable plan for defence.
Baroness Goldie (Con)
I thank the Minister and congratulate him on his appointment, and welcome him to the Front Bench. My Question was predicated on an already stretched defence budget and government opaqueness about the future. The commitment to spend 2.5% of GDP is very welcome, but we do not know when—it is jam for an uncertain tomorrow. The Leader of the House, the noble Baroness, Lady Smith of Basildon, said to this Chamber on Tuesday evening, referring to the strategic defence review, expected to report early next year, that it
“will inform how the amount is reached”.—[Official Report, 23/7/24; col. 424.]
The noble Lord, Lord Robertson, is deserving of much admiration, but his expertise is defence, not macroeconomics and certainly not Treasury fiscal wizardry. This is the Government’s most important responsibility; we have to stop pussyfooting around. How can there be any informed strategic defence review when the chief reviewer has not been told what the budget he is working on is?
Lord Coaker (Lab)
I thank the noble Baroness for her welcome to the post; it is an honour to follow her, as well as the noble Earl, Lord Minto. We have made a clear commitment to 2.5%, and the timetable for that will be announced at a future fiscal event. Alongside that, as the noble Baroness will know, the noble Lord, Lord Robertson, is conducting the review. As we think is important, the noble Lord will come forward with the capabilities needed to meet the threats of the future, and then we will know what we should be spending the money on, rather than just flying blind, without any idea as to the threats we will face and the capabilities needed to meet them.