Defence: Budget

Baroness Smith of Newnham Excerpts

Wednesday 17th June 2015 Lords Chamber

[Baroness Smith of Newnham (LD)]

My Lords, I very much welcome this debate, initiated by the noble Lord, Lord Sterling. I also welcome the fact that the Government have decided to look at an SDSR at the same time as a comprehensive spending review. Looking at the two things together seems to make sense, on the face of it. I am also very grateful that, in the gracious Speech, the Government reiterated the importance of giving defence whatever it needs. Yet the Government have, so far, failed to commit to the NATO 2% figure, although we are currently spending 2%. This is at a time when threats to the United Kingdom and its EU and NATO allies are growing. The context of 2015 is quite different from that of 2010. As the noble Lord, Lord Sterling, has already pointed out, we have the situation of Putin’s Russia and its incursions into Ukraine and its near abroad, which also happens to be our neighbourhood. We have the rise of Daesh and the prospect of returning jihadis, not to mention issues of cybersecurity, plus a whole raft of other security questions going on to the agenda. All of these have financial implications. They join a whole set of long-standing questions which came up in the previous Parliament but which I would like the Minister to consider.

Do the Government believe we are getting value for money in our existing defence procurement? Is the revolving door between the MoD, the services and business not a problem? Is our policy on reserves versus regulars fit for purpose? In the last Parliament, cuts were made in the Regular Forces that were to be filled with reserves, but it is clear that we have not yet filled the gap. We are still 11,000 down and it is not clear when those reserves are going to be recruited. Financially, the decisions of the last Parliament might have made sense to the accountants and for cutting the deficit, but we are left with a situation where the cuts have had an impact and we now need a fundamental reassessment of the threats to this country. If the successor is going to be voted on next year, the implications of that for the defence budget—which is not ring-fenced at a time when the Chancellor is still trying to make further cuts—create problems.

Will the Minister reassure the House that the Government will deliver on their commitments to UK security, despite the unwillingness, so far, to make good the 2% defence commitment? As the noble Lord, Lord West, pointed out, the Prime Minister was keen to press that on other Governments at the NATO summit in Wales last year. It is vital for this country that we deliver on these commitments.