Modernising Defence Programme

Debate between Earl Howe and Lord Hennessy of Nympsfield

Tuesday 18th December 2018 Lords Chamber

[Earl Howe]

My Lords, the defence transformation fund means that £160 million will be available next year from within the MoD’s existing budget, and we are looking to make a further £340 million available as part of the spending review. That will be part of our bid. The transformation fund has been established, in general terms, so that we can respond rapidly to new opportunities to invest in technologies that are game changing, and projects that move us forward at pace in areas that represent priorities. It will complement the innovation fund, as I have explained, although that fund will in itself more than double next year. It is too soon for me to itemise the projects and technologies that this money will be spent on. This is work in progress, but we are clear that the fund will perform a very useful function in enabling all the commands to focus their minds on priorities and potentially game-changing areas of activity. As further information becomes available, no doubt noble Lords can ask me about that and I shall be happy to provide further details in due course.

[Lord Hennessy of Nympsfield (CB)]

In the noble Earl’s judgment, what above all in this defence review distinguishes it from its 13 predecessors since 1945? As a footnote, I am greatly interested in the new tauter approach to strategic policy-making, with the new net assessment unit. To enable your Lordships to test the quality of this new approach, I wonder whether the Minister could place in the Library a copy of the new strategic assessment of the high north, undertaken as a pilot project, which is mentioned in today’s document?

[Earl Howe]

My Lords, if it is possible for the Ministry of Defence to share that document, I will certainly do as the noble Lord asks. In answer to his first question, there are two things to say about the MDP. First, this has been a major and very thorough piece of work. Secondly, the document is essentially strategic in its nature; it focuses on key defence capabilities and has affirmed the central elements of our strategy as articulated in SDSR 15, from which, as the noble Lord is aware, it emerged. It has also guided our investment decisions on capabilities, announced at the Budget, and updated our key policies. It is designed to keep us on track to deliver the right defence for the UK, and does so in what we see as a challenging decade ahead. As noble Lords read and reread the report, I am sure that it will make clear a lot of detail underlying the general proposition that I have just articulated.

Defence Modernisation Programme

Debate between Earl Howe and Lord Hennessy of Nympsfield

Monday 29th January 2018 Lords Chamber

[Earl Howe]

My Lords, I hope noble Lords will agree that I have always been open with the House about the stresses on the defence budget, not least those arising from the EU referendum. In particular, we have been quite open about the fact that the exchange rate has impacted our procurement budget, so I cannot agree with the noble Lord that we have tried to obscure the strain on our budget. I am not aware that there is the prospect of any in-year money, but I take issue with his word “crisis”. Speaking to my finance colleagues in the Ministry of Defence, it is pretty clear that we can get through this year, albeit with some temporary cuts to training which I agree are regrettable. But we can get through this year in good shape. The decisions that we need to take affect next year and beyond.

[Lord Hennessy of Nympsfield (CB)]

My Lords, I warmly welcome the winnowing out of this exercise from the Cabinet Office’s capability review, but could the noble Earl explain the difference between a defence review and a defence modernisation programme?

[Earl Howe]

My Lords, as I tried to explain a little earlier, a fully fledged defence review would look very like the exercise that we conducted in 2015: going back to basics on what threats we face, what our ambitions are as a country and what we need to do to deter those threats and to provide for those ambitions. This modernisation programme takes the fundamentals of the SDSR as read, because we believe them to be credible. It is to decide what capabilities we now need, in the face of intensifying threats around the world, to counter those threats in a way that ensures that we have a sustainable programme going forward.