King’s Speech

Baroness Smith of Newnham Excerpts

Thursday 25th July 2024 Lords Chamber

[Baroness Smith of Newnham (LD)]

My Lords, there has been a significant amount of change in your Lordships’ House since the election. Clearly, the caterers have changed sides, and the consumers have obviously decided that the menu from the Labour Party was a little more attractive than that of the Conservatives. The noble Baroness, Lady Goldie, has looked at the menu and responded. From these Benches—where we have not changed places, either physically, since we have not moved across the Chamber, or in our portfolios—I wonder if our role is to be here as restaurant critics considering what the new Government are offering compared with what their predecessor offered. In that sense, I find myself in a slightly odd position. One of the things that was always a great pleasure from these Benches was the extent to which, when the noble Baroness, Lady Goldie, was Minister of State, and the noble Lord, Lord Coaker, now the Minister of State, was sitting on the Labour Benches, the three of us would agree very strongly on many issues associated with defence. Just as the noble Baroness, Lady Goldie, said at the end of her remarks, that His Majesty’s loyal Opposition will support His Majesty’s Government on matters of state associated with defence and in the national interest, so too will we from these Benches.

However, I was not proposing to speak about menus; I was proposing to speak predominantly about defence. Although we have many speakers from these Benches on the Motion for an humble Address today, I suspect that my colleagues will be speaking predominantly on the foreign affairs aspect, so I will focus predominantly on defence. Clearly, we cannot consider defence in isolation—against whom are we protecting ourselves? I want to talk primarily about the defence review and a certain set of defence issues that have perhaps been underplayed so far this morning.

I have already welcomed the Minister, the noble Lord, Lord Coaker, to his place in a Question earlier in the week, but I also welcome the noble Baroness, Lady Anderson, to her place. She is the spokesperson in His Majesty’s Government for Scotland, Wales and Northern Ireland, but one of the things that she omitted, rather humbly, to mention this morning is her great commitment to defence. It is a real pleasure to speak after the noble Baroness, Lady Anderson.

I note how committed the new Government are to defence. It was almost the first thing that was mentioned in the gracious Speech. In opening, His Majesty said that his Government’s legislative programme will be “mission led”—I am not quite sure which missions we are talking about—

“based upon the principles of security, fairness and opportunity for all”.

The security of the realm is the first duty of the state. It is welcome that His Majesty’s Government have made a commitment to increased defence expenditure. One area that I touched on already this morning, along with the noble Baroness, Lady Goldie, is a path towards 2.5%. The noble Baroness, Lady Anderson, has said that a clear path will be indicated. However, if the new defence review is to consider not just the challenges of the last decade but of the next decade, and given that we have a new Chief of the General Staff who is talking about the need to prepare for war, is 2.5% going to be enough?

There is always a danger in using percentages, and saying that we aspire to 2% or 2.5%. Should His Majesty’s Government be looking at percentages, or have the noble Lord, Lord Robertson, and the rest of the team been offered the opportunity to fundamentally review the challenges? Are Russia, China, Iran and North Korea perhaps acting as an axis? Do we need to consider whether 2.5% is right? Will the MoD be willing to challenge the Chancellor if this review finds that defence expenditure needs to be higher? The challenges are so significant, and I am sure my colleagues will talk about many of the foreign policy challenges that we need to be considering.

I do not really believe in percentages, but as a quick aside, I believe that the noble Lord, Lord Collins of Highbury, gave a commitment to increase the expenditure on development aid back to 0.7% when the financial circumstances permitted. I thought that was the policy of the outgoing Government. What is the position of the current Government? Will that happen only when the fiscal circumstances allow, or could we potentially have a timeline for that?

The defence review is clearly very important, and it is important that we do not pre-empt its outcome. At the same time, we have already heard about the commitment to GCAP, about which we will be talking again on Monday. There are also commitments to AUKUS. It is surely vital that we do two things, as a country, and as His Majesty’s Government. One is to make sure that we keep our allies fully abreast of what is being done in defence and foreign policy co-operation, so that nobody is blindsided by the outcome of the defence review. That applies to GCAP and to AUKUS. It would be very helpful if the Minister could tell the House about some of those discussions. It is also important that we talk to the defence industrial base. The noble Baroness, Lady Anderson, has already mentioned that. We need to talk to suppliers—not just the primes but also the subprimes. Could the Minister tell the House what commitments the Government can give to SMEs in the defence sector, particularly those that are led by veterans? If they are bidding for contracts, one of the key things they need is a degree of certainty.

Finally, the only bit of the gracious Speech that talked about legislation in defence was about the Armed Forces commissioner. That is clearly a very welcome post, but it is also part of the wider issues that His Majesty’s Government are going to have to take in hand. These include how far the Government are going to be able to improve recruitment and retention, and Armed Forces accommodation, and make sure that we do the right thing by our service personnel, veterans and their families, because we all owe them a huge debt of gratitude. There are many questions for the Minister, but we wish him well.

Ministry of Defence: Expenditure

Baroness Smith of Newnham Excerpts

Thursday 25th July 2024 Lords Chamber

[Lord Coaker (Lab)]

The noble Lord will know that the situation with respect to the Belfast shipyard and Harland & Wolff is a difficult one. Our expectation is that those ships will be able to be built. Clearly, the company is looking for a private sector business to support it, and we will look to do what we can to support it in that.

[Baroness Smith of Newnham (LD)]

My Lords, is the Minister able to reassure the House, and perhaps the noble Lord, Lord Robertson, that this is intended to be a defence-led review, not a Treasury-led review? If the noble Lord, Lord Robertson, and his colleagues in the review find that expenditure needs to be not a vague 2.5% at a certain point but 3% or more, would His Majesty’s Government be willing to spend whatever is necessary?

[Lord Coaker (Lab)]

I thank the noble Baroness for her question. I think she slightly gets in front of herself. We have made a commitment to 2.5%, and that is a cast-iron guarantee. The noble Lord, Lord Robertson, is in his place and has heard the points she has made. We look forward to a deliverable, affordable plan that will meet the threats we will face in the future—not the threats now or in the past, but in the future. That is why the review of the noble Lord, Lord Robertson, is so important. The money that we spend has to be spent to deliver the capabilities needed to meet those threats. That is the fundamental principle that underlies what we are doing, and it will be maintained.

Tempest Global Combat Air Programme

Baroness Smith of Newnham Excerpts

Tuesday 23rd July 2024 Lords Chamber

[Lord Coaker (Lab)]

As I said in answer to the question from the noble and gallant Lord—and the noble Lord makes the point for himself—the relationship between ourselves and Japan is extremely important. The technological advantage that both the UK and Japan get from our close partnership is extremely important. As I said in answer to the original Question, progress continues on the GCAP with the other partner, Italy. A strategic defence review will look at all the various programmes, but progress continues.

[Baroness Smith of Newnham (LD)]

My Lords, I welcome the noble Lord to his place. When he and I sat on adjacent Benches, we tended to agree. I always had the benefit of being able to piggyback on his comments before I asked my questions, so I very much hope that we will continue to agree across the Chamber. The only slight problem this afternoon is that, in answering the Question from the noble Lord, Lord West, he took away all the questions I was going to ask about diplomatic relations with Italy and Japan by giving an answer that I think is welcome. On the review, we clearly need to think about diplomatic questions and questions about our defence industrial base. While the defence review is going on, what security are His Majesty’s Government giving to defence contractors that the work being undertaken on various programmes will continue? Clearly, not just our international partners but defence contractors will be concerned.

[Lord Coaker (Lab)]

I very much hope that the noble Baroness and I can carry on working together. Without being pompous about it, all of us across this Chamber share an interest in the defence of our country and in freedom and democracy across Europe and the world. Working together is extremely important. On her question about the defence industry, she may have seen that yesterday the Prime Minister announced Skills England, which will work with the defence industry and defence companies to overcome one of the biggest hurdles this country faces: the skills shortage, which we have been trying to overcome for a number of years. Redoubling our efforts on that will make a huge difference—but that is just one example of how we intend to work with the industry.