Ministry of Defence: Equipment Plan
Earl of Minto Excerpts(5 months, 2 weeks ago)
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Lord Coaker
To ask His Majesty’s Government what assessment they have made of the National Audit Office’s value for money analysis of the Ministry of Defence’s Equipment Plan 2023 to 2033, published on 4 December.
The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
My Lords, the National Audit Office’s report on the equipment plan states that it does not consider the value for money of the MoD’s equipment expenditure or of the specific projects mentioned; nor does it comment on the policy choices that the department makes to develop a plan that meets its future needs. While the National Audit Office report recognises the significant impact that global headwinds and high inflation have had on UK defence, it does not and could not accurately reflect the current or future state of the Armed Forces equipment plan, given that it pre-dates the publication of the defence Command Paper refresh.
Lord Coaker (Lab)
My Lords, the NAO report is deeply disturbing at a time when we have war in Europe, conflict in the Middle East and growing threats globally. As we have just heard from the Minister, the MoD just dismisses it as a dated snapshot that does not reflect reality. The NAO says that the plan is unaffordable and that forecast costs exceed the available budget by £16.9 billion. It says that the MoD estimates that the funding gap could range between £7.6 billion and £29.8 billion. How is that just a dated snapshot?
The Earl of Minto (Con)
My Lords, the Ministry of Defence certainly does not consider the report in such a way. Where the Ministry of Defence is coming from is that our Armed Forces are operating in an increasingly contested and dangerous world, and we are working hard to deliver what our servicepeople need to keep the United Kingdom safe. We are in a period of great change, which is why the equipment plan budget has increased to £288.6 billion over the next decade. It is about the next decade—10 years forward.
Lord Stirrup (CB)
My Lords, one of the most interesting forecasts in the NAO report is not a figure but a word: “Unknown”. It is the forecast of the equipment plan cost if it were to reflect all the capabilities outlined in the 2023 integrated review and defence Command Paper refresh. The gap between resource and ambition is serious and leaves us exposed in an increasingly dangerous world. When are the Government going to get a grip on it?
The Earl of Minto (Con)
My Lords, I do not buy that the plan is unfundable and unworkable. There is significant flexibility within the figures and large contingencies to allow the flexibility of the correct platforms to be developed over the period of time to meet the defence needs for the state.
Baroness Goldie (Con)
My Lords, does my noble friend the Minister agree that it is wrong to look at the defence equipment plan as some kind of rigid, unchangeable proposition, for the very reason he has just indicated? We have to have headroom, which is necessary to allow for flexibility, pursuant to the defence Command Paper refresh, but also because of emerging technologies and our constant journey with artificial intelligence. It is important for everyone to remember that inherent flexibility is actually a strength.
The Earl of Minto (Con)
My Lords, it is a great honour to answer a question from my predecessor. She is absolutely right: we are looking at a 10-year timeframe and only 25% of expenditure is committed. We have a contingency budget in there of more than £4 billion.
Baroness Garden of Frognal (LD)
My Lords, the equipment plan bandies around some interesting figures: the noble Lord, Lord Coaker, mentioned £16.9 billion, while I picked up £7.6 billion and £29.8 billion—obviously, precision is our watchword. The noble and gallant Lord, Lord Stirrup, picked up the very alarming word “Unknown” for the costs and, where they are known, they are deemed to be “unaffordable”. This is not a good projection. Can the Minister project a rather more accurate estimate of the financial cost? In particular, how does the MoD intend to meet the acute skills shortage gap? Without the skills, our brave military personnel are going to be lost.
The Earl of Minto (Con)
The noble Baroness makes a good point. In fact, there is considerable investment in skills—particularly in the areas of nuclear and shipbuilding—within these figures, all of which are costed. She is absolutely right that the skills gap that the industry is facing is entirely being funded and down to government.
Lord Browne of Ladyton (Lab)
My Lords, following on from the most important question arising from this report, raised by the noble and gallant Lord, Lord Stirrup, I wish to make a couple of points to the Minister and ask him a question. First, this report, like all NAO reports, was agreed by the department.
Secondly, the report specifically says that the equipment plan
“does not reflect all the cost pressures to develop new and support existing capabilities set out in the 2021 Integrated Review”,
which was updated in March this year. I recollect that the then Secretary of State for Defence, Ben Wallace, said that the extra £5 billion was welcome but that £11 billion was needed.
Thirdly, the report highlights the fact that the individual services have differing approaches to preparing the forecast in the plan. The Navy and the Royal Air Force include predicted costs for the capabilities that the Government expect from them while the Army includes only what it can afford. These issues need immediate attention, do they not? They should be attended to immediately.
The Earl of Minto (Con)
My Lords, I agree with much of what the noble Lord has said. One of the key points about the NAO report is that it does not reflect the aspiration to increase defence spending to 2.5% of GDP when economic and fiscal conditions allow. If one puts that back in, it obviously completely changes the finances.
On the question of consistency, I am in entire agreement. I am very new in this role. I have looked at budgets for the last 40 years and I have never seen a budget that resembles anything like this one, and that is not just the absolute figures. The way in which it is constructed means that it is very difficult to get to exactly the way in which the money moves around. That is something that I commit to the House that I will learn and then lose not much more sleep over.
Lord Craig of Radley (CB)
My Lords, can the Minister confirm that none of the cost of the equipment provided to the Government of Ukraine has been or will be met from the defence budget, and that that will include any restocking of war stocks that have been gifted to Ukraine?
The Earl of Minto (Con)
My Lords, I thank the noble and gallant Lord for that question. I can confirm that all equipment gifted to Ukraine is well without these figures. Your Lordships will know that, as well as the £5 billion that was granted by the Chancellor, an additional nearly £0.5 billion was given to restock the stockpiles that are required.
Lord Bellingham (Con)
My Lords, I wish the Minister all the best in his new appointment. Further to the question from the noble Baroness, Lady Garden, the NAO report refers to supply line risks and constraints caused by skills gaps, plus the shortage of key components. Much of that is the consequence of the war in Ukraine. We must continue the support for that war but, further to the noble Baroness’s question, what more can the Minister and the department do to address the skills gap by working with key contractors and suppliers, such as BAE?
The Earl of Minto (Con)
My noble friend makes two very good points. One is about the extremely complicated supply chain that the defence industry has to follow and the extreme pressures that inflationary costs bring to bear on that. It is not just headline inflation; the inflationary costs go from raw materials right through to the completed product. It is extraordinary and very varied. The question of the skills gap is at the heart of one of my right honourable friend’s tasks in the other place in ensuring that British industry, particularly organisations such as BAE Systems, is sufficiently available to get the skills.
Lord West of Spithead (Lab)
My Lords, the report is extremely worrying. The Government seem to have the ability to talk as if these things are not crucial. There is no doubt that we need more money spent on defence. I understand that we are looking at 2.5% when the situation allows. Yes, we are very short of money, but sometimes, if things are so dangerous and worrying, you have to adjust your priorities.
We seem to be lulling ourselves into a false sense of security. If the Government really think that our military is being sufficiently funded and all things are rosy, I am very worried. If that is just what they are saying to put a good face on it here, fine, but I have a horrible feeling that they believe things really are rosy. I ask the Minister to look at the real impact of this NAO report, because there is no doubt that things we have been promised will not come.
The Earl of Minto (Con)
My Lords, I assure the noble Lord that the Government take the report extremely seriously, as I said to the noble Lord, Lord Coaker. An enormous amount of work is going on in the department to look at the changing defence requirement for the next 10 years and the impact that it is likely to have on the cost implications. Everybody is fully aware that the Government wish to get to 2.5% as a minimum and I am sure that, when fiscal conditions allow, that will be delivered.
Middle East: UK Military Deployments
Earl of Minto Excerpts(5 months, 2 weeks ago)
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Lord Coaker (Lab)
My Lords, I start by wishing the noble Earl, Lord Minto, well in his important position; we all wish him well on that.
We welcomed last week’s pause in fighting. Efforts continue to get much-needed aid into Gaza. We supported and welcomed the initial deployment of UK forces on 13 October; we recognise the important role that the UK plays in strengthening regional stability in the Middle East. We learned earlier this week that unarmed military surveillance will begin support for hostage rescue. How will the Government ensure that these UK surveillance flights support hostage rescue and not any military operation? In terms of UK military personnel and assets deployed to the region, what steps are we taking to ensure that they can fulfil their designated role and also be adequately protected?
The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
My Lords, I thank the noble Lord for his welcome. His Majesty’s Government’s objectives in the short term are: first, to secure the release of the British hostages, which my right honourable friend in the other place said he
“will move heaven and earth”—[Official Report, Commons, 5/12/23; col. 211.]
to do; secondly, to show solidarity with Israel in defending itself against the terrorist organisation Hamas; and, thirdly, to call for humanitarian pauses exclusively to deliver emergency aid. Those are the three primary things.
The surveillance flights that have started are manned and unarmed. They are there specifically to assist in locating, identifying and removing hostages, particularly British ones. On the question of ensuring that the assets being deployed are protective, clearly, force protection is absolutely paramount in any form of military operation but, beyond that, we cannot go into any specific depth for clearly understood reasons.
Baroness Smith of Newnham (LD)
My Lords, I think I welcomed the Minister to his place when he opened the King’s Speech debate, but I welcome him again. The noble Lord, Lord Coaker, asked about the protection of our forces but my question is about the sustainability of deployment. It is absolutely right that we have sent a Royal Navy task force and that HMS “Diamond” is on its way—it is good to see that it is currently seaworthy —but what assessment have His Majesty’s Government made about the length of potential deployments, given that forces are already quite constrained? Do we have adequate resources and troop mobilisation, and have we thought about the question of morale?
The Earl of Minto (Con)
The noble Baroness makes a very good point: morale is obviously paramount. Part of ensuring the morale of His Majesty’s forces is ensuring that there are sufficient forces not only to fulfil the task but to provide force protection. In this case, it is not as though any forces have been taken away from any other theatre; the noble Baroness is absolutely right that the ships that have been dispatched have come from another location. HMS “Lancaster” is already in the Gulf; HMS “Diamond” is on the way to join it; HMS “Duncan” is already operating as part of a NATO maritime task group in the Mediterranean; and the RFA “Lyme Bay” and RFA “Argus” are standing off, ready to assist wherever possible. Certainly, there are sufficient forces, and nothing has been withdrawn from anywhere else.
Lord Lancaster of Kimbolton (Con)
My Lords, I am delighted to follow the noble Baroness because I can perhaps help her with an answer. I declare my interest as director reserves in the British Army. HMS “Lancaster”, which I had the privilege to visit two weeks ago in Bahrain, is permanently deployed to the Gulf. It is a new model, whereby we deploy the ship for three years and rotate the crew, meaning that she can be on station for a prolonged period of time, while HMS “Diamond” is simply surged. However, that puts considerable strain on the crew because you need to double-crew HMS “Lancaster”; they have four months on and four months off. Will my noble friend the Minister look at this model for other vessels in the Royal Navy because it results in their being on station for much longer, or is it the case, as I suspect, that we simply do not have sufficient vessels to do this for a second vessel? Does it put too much strain on the naval personnel who are required to do that double-manning?
The Earl of Minto (Con)
My Lords, I do not know the detail on that, so I will find out and write to my noble friend.
Lord Campbell of Pittenweem (LD)
My Lords, the Minister, being a good Scot, will perhaps know the Scottish Gaelic welcome, “One hundred thousand welcomes”. I am happy to join in repeating the welcome to him. He has already referred to the Royal Fleet Auxiliary, which is part of the deployment. A little further on in the Statement, the Secretary of State said:
“Four RAF flights carrying over 74 tonnes of aid have landed in Egypt. I am considering whether RFA Argus and RFA Lyme Bay can support medical and humanitarian aid provision”.—[Official Report, Commons, 5/12/23; col. 211.]
Has that decision been taken? If not, does not the deterioration we see on a daily basis in relation to medical and humanitarian aid suggest that, if it is to be taken, it ought to be taken fairly quickly?
The Earl of Minto (Con)
The noble Lord makes a good point. I am sure he knows that my right honourable friend is out in that part of the world at the moment; that is part of the conversations that are going on. The whole question of humanitarian aid is obviously uppermost in people’s minds. We have already supplied more than 70 tonnes of humanitarian aid, I think, but the difficulty is getting it into Gaza, of course. The Rafah entrance point is under severe congestion and there are stockpiles of aid ready to go in. One reason why conversations are going on at the moment is to see whether any other route can be negotiated with the Israel Defence Forces and the Israeli Government to get aid into Gaza; every avenue is being looked at.
Baroness Helic (Con)
My Lords, the key test in granting export licences is criterion 2C of the Strategic Export Licensing Criteria, which focuses on whether
“there is a clear risk that the items might be used to commit or facilitate a serious violation of international humanitarian law”.
Can my noble friend the Minister tell the House whether criterion 2C has been considered in granting arms exports to Israel?
The Earl of Minto (Con)
My Lords, on the supply of military equipment to Israel, I can assure the House that no offensive military equipment has been delivered since 7 October. We do not have an enormously large export business with the Israelis in that respect anyway; it is between £40 million and £45 million. We have provided medical equipment at their request. In relation to ensuring adherence to international humanitarian law, we continue to push at the highest level for Israel to comply with international humanitarian law. We would engage with Israel if we observed any activity to the contrary.
Lord Lancaster of Kimbolton (Con)
My Lords, as we still have time, can I ask another question? When the UQ was held in the Commons, the Secretary of State said that 74 tonnes had been delivered to Egypt, I think; of course, as my noble friend has just said, that is not much good if it is not getting to Gaza. Has any of those 74 tonnes got to Gaza yet? If not, what action are we taking to ensure that they do?
The Earl of Minto (Con)
As my noble friend will know, there is a great stockpile of humanitarian aid ready to go in across a whole range of things, such as wound care packs, water filters, solar panels, lights, equipment, fork-lifts, conveyor belts and lighting towers. All sorts of things are ready to go in but the challenge is getting them approved and checked. I cannot give an absolute assurance as to how much has got in; I will find out and write when I can.
Ukraine
Earl of Minto Excerpts(5 months, 3 weeks ago)
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The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
My Lords, I shall now repeat in the form of a Statement an Answer given today in another place:
“Since I last updated the House on 24 October, the situation on the ground has remained largely unchanged. The armed forces of Ukraine continue to make slow but steady progress in their fight to retake their country, while a small crossing of the Dnipro has been established. Russian forces have made small advances in the northern axis of a pincer movement with which they are attempting to surround the town of Avdiivka.
Over the weekend, Russia launched what is likely the largest wave of one-way attack drone strikes on Ukraine of the war so far, ahead of another likely winter campaign of strikes against Ukrainian energy infrastructure. Ukraine neutralised most of the incoming weapons from this latest assault, and international partners, including the UK, are working with Ukraine to further strengthen its defences.
We will continue to support priority areas for Ukraine in the coming months, including air defence and hardening critical national infrastructure sites. Our foundational supply of critical artillery ammunition continues. We also continue to develop Ukraine’s maritime capabilities, helping it to deny Russia control in the western Black Sea. With government help, a UK-based commercial insurance provider has developed an insurance facility for shipping using the Ukraine maritime corridor. This facility charges premiums in line with those under the Black Sea grain initiative, which is crucial for reattracting commercial shipping.
The UK has committed £4.6 billion of military support to date, as we continue to donate significant amounts of ammunition and matériel from our own stocks, as well as those purchased from across the globe. In addition, we have trained more than 52,000 soldiers since 2015. Our support for next year is being finalised, both internally within the Government and with our partners around the world, and will be announced shortly”.
Baroness Anderson of Stoke-on-Trent (Lab)
My Lords, the people of Ukraine are on the front line of our collective fight against totalitarianism. They deserve nothing less than our full-throated and complete support. Can the Minister assure the House that as we are yet to see the promised 2023 action plan for Ukraine, we might get sight of the 2024 plan before 2025? Will he promise your Lordships’ House that it will be accompanied by a funding commitment, which we are yet to see, for year three of the war?
The Earl of Minto (Con)
My Lords, the UK strongly condemns the appalling and illegal unprovoked attack that President Putin has launched on the people of Ukraine. We stand with Ukraine and continue to support its right to be a sovereign, independent and democratic nation. On the question of what our commitment is for the year to come, this is Ukraine’s plan for what it intends to do in 2024; it is not ours. Once Ukraine is ready to share that plan with the forces, we will of course be there in full support.
Baroness Smith of Newnham (LD)
My Lords, the Minister should be able to answer, I hope, not on Ukraine’s plan but that of His Majesty’s Government. The Statement repeat suggested that support for next year is being finalised, talking about “within government” but also
“with our partners around the world”.
Can the Minister say whether that includes talking with industry? Unless we have access to adequate matériel and ammunition, we are not going to be able to deliver what is needed for Ukraine.
The Earl of Minto (Con)
My Lords, the noble Baroness is right that the world will not have the relevant stockpiles unless the orders are placed with industry. There is an expectation of what the commitment will be and the rate of fire that is currently being managed—that is probably the best word—by the Ukrainian armed forces is its start point. Orders have been placed across the world with industry, and this country is not outwith that.
Lord Robathan (Con)
My Lords, I belatedly welcome the noble Earl to his place and remind him that we once shared Chelsea barracks, nearly half a century ago. The Government have been very good and admirable in their behaviour with Ukraine, so let us congratulate them on that. However, I return to what the noble Baroness, Lady Smith, just said. Can the Minister reassure me and the House, and the country, that our armoury is full and replenished after all the stuff that we have given to Ukraine?
The Earl of Minto (Con)
My Lords, I thank my noble friend for those fond memories of serving Her Majesty. The question about replenishment is not on a like-for-like basis. A lot of what we have gifted to Ukraine has been from stockpiles. When you deplenish stockpiles, you replace with what is more current, what is new and what is more appropriate to the area of operation that we find ourselves in. We are not preparing for a Cold War; we are preparing for something very different, as I am sure everybody in this House is fully aware. Therefore, the orders that have been placed for missiles, cannons, rifle rounds and shells are appropriate for the weaponry that we are bringing in and currently have, rather than some of the gifted matériel that we have got rid of in recent years.
The Lord Bishop of St Albans
My Lords, I was interested to hear the reference to the insurance for shipping. We are all aware, I think, of the vital importance of getting the grain out of Ukraine, both to support the Ukrainian economy and because it is making such a difference in feeding many parts of the world. Can the Minister tell us whether other contingency plans are being made in case shipping lanes get blocked again, and not least whether there other ways of getting grain out of Ukraine while we have the time to make those preparations?
The Earl of Minto (Con)
My Lords, the right reverend Prelate makes a very good point. There is an alternative route to get grain out, which is across the land. However, it comes at a cost, which is highly punitive. I think that, before the war commenced, Ukraine accounted for between 8% and 10% of global wheat exports and about 10% to 12% of corn and barley exports. This is a significant logistical problem. The idea of shifting that amount of grain out of Ukraine via vehicles and trains is obviously quite a challenge, so the sea route is extremely important. We can take great credit for succeeding in getting insurance in place. This allows ship movements out, which are increasing quite dramatically, at the recognised premium rate rather than what I might call a war rate.
Lord Anderson of Swansea (Lab)
My Lords, in Ukraine the snows have come early. As the Minister has said, the military situation on the ground remains largely as it was when he gave his last Statement. Are the Government aware of any pressures, or are they party to any pressures now, on the Ukrainian Government to reach a territorial compromise?
The Earl of Minto (Con)
My Lords, the noble Lord is absolutely right that winter has arrived in some force, as it has across quite a lot of southern Europe and further afield. The question of reaching a territorial compromise is obviously not something for us to be too involved in; it is for Ukraine. Ukraine has been absolutely resolute that it will not enter those conversations until all Ukrainian land is back within its sovereign right.
Lord Soames of Fletching (Con)
My Lords, would my noble friend pay tribute to the extraordinary skills of the British service men and women who are training these brave Ukrainian warriors? Would he further agree that now that general winter has a grip of the battle line, we are in for a period where there will be not much movement on either side, and therefore it is essential that Ukraine understands our unswerving commitment to it in the future.?
The Earl of Minto (Con)
My Lords, I entirely agree with that statement. We can be extremely proud of the way that UK forces have trained Ukrainian soldiers to withstand the onslaught of the Russian might. This is basic training, which a number of us here have gone through. It is not particularly pleasant, but if you have not gone through it then the idea of facing up to the Russians is not something to be looked forward to. The Government are absolutely resolute not only in continuing this level of training but in supporting Ukraine right through to the finish.
Lord Laming (CB)
My Lords, the Minister will know that, in the Russian-occupied part of Ukraine, a number of children were removed from their families. Could the Minister assure the House that everything is being done to help these children be reunited with their parents?
The Earl of Minto (Con)
The noble Lord is absolutely right; this is an atrocious war crime. All pressure which is possible to be laid is being done so. To take children away from families is beyond expectation.
Baroness Sheehan (LD)
My Lords, I declare an interest in that I am hosting a Ukrainian refugee family through the Homes for Ukraine scheme. The scheme was originally for two years, and I believe it started last April. What are the Government’s plans for renewing this scheme or replacing it with something else when it expires next April?
The Earl of Minto (Con)
My Lords, this is not within my brief; this is for those at the Home Office. I will certainly contact them and find out exactly where they are in their thinking. My understanding is that there is no intention to do anything other than continue the current situation.
Lord Carlile of Berriew (CB)
My Lords, in 2008 it was declared by NATO that Ukraine should become a member. Yesterday Jens Stoltenberg, the Secretary-General of NATO, declared that it was the intention now that Ukraine should become a member. Will the Government tell us the timetable for Ukraine to become a member of NATO and, thereby, to have the full protection of that organisation?
The Earl of Minto (Con)
My Lords, I am not aware of any timetable, and I am not certain there is one. For Ukraine to become a member of NATO, the prerequisite is that there are no foreign troops on its soil. There certainly are foreign troops on its soil in vast quantities. Until that is resolved, I cannot believe that the NATO alliance can do anything other than continue in its resilient resistance.
King’s Speech
Earl of Minto Excerpts(6 months, 1 week ago)
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The Minister of State, Ministry of Defence (The Earl of Minto) (Con)
My Lords, on behalf of your Lordships’ House, I thank His Majesty the King for delivering the gracious Speech, and I am grateful for the privilege of opening today’s debate on the Motion for an Humble Address.
I will also take this opportunity to thank and pay tribute to my noble friend Lady Goldie for her exemplary work over the past four and a half years as a Minister of State for Defence and in this House. Her diligent work ethic and profound sense of duty were an example to all of us, and I look forward to her remaining engaged in this House from the Benches behind me.
This is an historic moment. The last time the King’s Speech was officially delivered was back in His Majesty’s grandfather’s day, in 1951. King George VI himself was too ill to deliver the address that day, so the job fell to the then Lord Chancellor, Lord Simonds. Seven decades on, we have entered a very different age. In 1951, our nation was coming to terms with the devastation and impoverishment at the end of World War II, we were adjusting to the bipolar mindset of the Cold War and we were embarking on a very hot conflict indeed on the Korean peninsula.
Today, we are living in a world of multipolar conflict, the most recent beginning on 7 October, when Hamas committed a terrible, unprovoked pogrom against innocent citizens in Israel, the worst attack against Jews since the Holocaust. Since then, we have been clear about our unwavering support for Israel’s right to self-defence as well as the importance of adhering to international humanitarian law. We have dispatched UK military assets to the region to carry out surveillance and act as a deterrent, and we have committed £30 million in additional aid to the Occupied Palestinian Territories, more than doubling our existing support for this year. This will allow trusted partners to distribute essential relief items and services, such as food, water and shelter. In recent weeks, the Prime Minister, Foreign Secretary and Defence Secretary have all paid visits to the region and discussed the risk of escalation extensively with partners.
But the current war in the Middle East only serves as a reminder of how interlinked the threats we face are. Lurking behind Hamas is the spectre of Iran, which continues to pose an unacceptable risk, not just to Israel but to her neighbours. Iran’s proxies—Palestinian Islamic Jihad, Hezbollah in Lebanon, and the Houthis in Yemen—have all displayed their aggressive intent. Iran in its turn is allied to Russia, which it continues supplying with suicide drones.
But even as we watch events unfold in the Middle East, we will not be distracted from our determination to assist our Ukrainian friends in their fight for freedom. Russia, despite having upped its attacks in recent weeks, continues to lose strategically. It has incurred staggering losses, including almost 300,000 casualties since it began its illegal conflict, of which approximately 50,000 Russians have probably been killed. At the same time, the Kremlin has lost thousands of battle tanks and protected vehicles, as well as many hundreds of UAVs, fixed-wing aircraft and helicopters. Most recently, its assaults over the ground in Avdiivka saw it lose a further 200 armoured vehicles and suffer several thousand casualties. A newly built Russian navy corvette was almost certainly damaged in the strike while alongside at Kerch in occupied Crimea.
Putin believes the West will tire of this war. Well, he can think again. The UK has been clear: we are in it for the long term. We were the first European country to send Ukraine lethal aid, the first to provide it with tanks and the first to provide it with long-range missiles. Last week, we reached the milestone of training more than 30,000 troops, with instructors from Australia, Canada, Denmark, Finland, the Netherlands, New Zealand, Norway and Sweden all participating in the effort—the perfect embodiment of the international community’s collective resolve. This year, we are on course to spend around £2.3 billion on military support for Ukraine. That is money for more training, more air defence and more artillery.
But defence is only one element in our whole-of-government approach to Ukraine. We have also delivered successive waves of the harshest sanctions Russia has ever faced, targeting more than 1,800 individuals and entities while freezing more than £18 billion-worth of Russian assets in the UK. Meanwhile, the UK has taken the lead in ensuring Ukraine is ready to start regeneration the day after conflict ends. Earlier in the year, with Ukraine, we hosted the Ukraine Recovery Conference, raising more than £60 billion towards meeting its reconstruction needs. As we look ahead to 2024, we will continue to do all we can to ensure Ukraine receives the assistance necessary to reassert its sovereignty, regain its territory and restore peace.
Meanwhile, the UK is also deeply engaged in the wider work of strengthening the Euro-Atlantic security. NATO remains the bedrock of our defence, and the refresh of both the integrated review and the defence Command Paper has further enshrined its centrality to our security. We have committed nearly the totality of our air and maritime assets to the NATO force model and, next year, the Army will provide the land component for the inaugural allied reaction force. Despite the convulsions of the geostrategic environment, one of the rare bright spots has been the way other nations have stepped up to support the alliance. At Vilnius, allies agreed the most radical overhaul of NATO’s deterrence and defence since the Cold War, a new generation of war-fighting planes, backed by more ready forces and a defence investment pledge which makes 2% of GDP a floor, not a ceiling.
NATO is now more resilient. Not one Russian boot has entered NATO territory. It is stronger too. Finland has already acceded to the alliance, with Sweden, we hope, soon to follow. We warmly welcome the steps that Turkey has taken to bring Sweden’s accession closer, as well as continuing to encourage Hungary to ratify without delay. In the meantime, we will support Sweden to conclude the process and remain ready to assist with rapid integration into NATO structures.
Since our adversaries are acting globally, from the Indo-Pacific to west Africa, from Latin America to the High North, we must compete globally too. As our Prime Minister said recently, Euro-Atlantic and Indo-Pacific security are indivisible. China in particular poses us an epoch-defining challenge. It is not only accelerating its military modernisation but using assertive and coercive behaviour to rewrite the international order that has provided stability and prosperity for generations. It is flexing its economic and military muscle to advance territorial claims in the Indo-Pacific. It is expanding its influence across Europe, Africa and the Middle East, including through the proliferation of weapons systems and, of course, it has formed a “no limits” partnership with Russia.
That said, we do not accept that China’s relationship with the UK or its international impact are set on a predetermined course. We compete with China where we need to and we hold it to account when we need to. At the same time, we have been working harder to shape an open international order that upholds stability, security and prosperity and which promotes sustainable development. We have sought to be more proactive and more persistently engaged in the Indo-Pacific than ever before. As part of our tilt towards the region, we have offshore patrol vessels permanently deployed to deliver humanitarian aid. Our regional British defence staff are expanding their influence and we have defence presence in Singapore to help build regional capacity. Our global combat air programme partnership with Japan and Italy, and the AUKUS programme with the United States and Australia, provide case studies for our new approach to global partnerships.
For the avoidance of doubt, these are not just about countering threats, or submarines and planes. They are about collaborative effort, about partnering for technology- transferring, skill-sharing information exchanges. They are national and generational enterprises. The allow us to sustain our capabilities over the long term and strengthen our supply chain resilience to help us prosper through the 2020s and the 2030s. In fact, this partnership principle runs like a golden thread through our approach to global affairs. You see it in how we are working with the G7 to enhance co-operation on supply chain resilience and in how we are working with Canada to guarantee supplies of critical materials. You see it in how we are enhancing energy security, whether renewing participation in the North Seas Energy Cooperation group, stepping up collaboration with the USA or building investment partnerships with Gulf states on renewables.
You also see it in our deep-seated commitment to doing global good. Over the past year, we have delivered rapid responses to those affected by natural disasters in Morocco and Libya—the fastest deployment of UK international search and rescue since 2001. We have announced more than £5 billion-worth of special drawing rights contributions to the International Monetary Fund’s trusts for low-income countries, alongside a World Bank commitment to lend an additional $50 billion over the next 10 years. The Foreign Secretary has stepped up his visits to a range of countries, including Egypt, Kenya, Nigeria, Ethiopia and Sierra Leone, to reinforce our commitment to building partnerships to tackle geopolitical challenges.
With COP 28 just around the corner, we are also reinforcing our commitment to tackling climate change by funding renewable energy transitions across Asia, investing £2 billion in the green climate fund and signing a UK-Brazil partnership on green and inclusive growth.
By helping others, we are also helping ourselves: UK leadership is opening up exciting opportunities for our people. We have brought in technology envoys to deepen our science and technology partnerships across the globe. We recently hosted the first international AI safety summit here in London to harness these paradigm-shifting technologies for the benefits of humanity. We continue to increase our prosperity by expanding our portfolio of trade deals. We have acceded to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership—CPTPP—a group of economies that accounted for £113 billion-worth of UK trade in 2022, and whose investment alone created more than 5,000 new UK jobs last year. We have launched the Developing Countries Trading Scheme, covering more than £21 billion in exports to the UK each year, and we have supported free trade agreement negotiations with India, Mexico and the Gulf Cooperation Council.
To keep delivering globally in a world of growing dangers, we must keep strengthening defence. Our defence Command Paper refresh set out our plans to invest hundreds of billions of pounds to recapitalise our capabilities across land, sea and air: there will be new hunter-killer submarines; next generation Dreadnoughts to carry our nuclear deterrent; new classes of frigates; Typhoon with system upgraded; plus the arrival of F35s, A400s, Challenger 3, Boxer and the next generation of Ajax. On the latter vehicle, there has been a turbulent process—which this House knows only too well—but I am pleased to say we have at last turned a corner. Ajax is now back in the hands of the Army, with training with the Household Cavalry resuming in June. Reliability growth trials are progressing well, with more than 18,000 kilometres driven, as they continue to stress-test the platform and components through a series of battlefield missions that represent years of activity. Beyond that, we are investing in infrastructure and technical support, dockyard infrastructure and technical workshops: the sort of out-of-the-limelight activity that often gets taken for granted but is critical during times of conflict.
Over the past weekend, we have been reminded of how much we owe to those countless generations who have served and sacrificed to keep our nations safe. Our people have always been our greatest asset and our finest capability, but our challenge over the coming years will be to keep recruiting and retaining world-class talent. Yet if we are to compete with civilian employers, we must do things differently: ignoring artificial barriers, ditching old rules while respecting the past, and moulding our offer around the person and not the other way round. That is why we have implemented all 67 recommendations in the Haythornthwaite review, which will transform the way we reward and incentivise our people. This includes the introduction of zig-zag careers, allowing our people freedom to move around between public and private sector to enhance their skills.
We have also begun the painful process of addressing the MoD’s past misdeeds. I know that for many LGBT veterans the publication of the Etherton review revived painful memories of the shameful ban. We have apologised for those historic wrongs so that LGBT veterans can once again take pride in their service. We are determined to make amends: restoring medals that were snatched away, awarding campaign and other medals that were withheld, while clarifying pension rights and the presentation of the veterans badge.
Finally, as we contemplate the chill of winter, our thoughts turn to accommodation and making sure that our people have the warm and inviting homes that they deserve. Our wider defence estate optimisation portfolio will provide new and refurbished military residential accommodation and housing for over 40,000 soldiers, sailors, aviators and their families. We are injecting a further £400 million into military housing over the next two years. That is money to refit kitchens and bathrooms, and upgrade boilers for more than 1,000 homes. It is money to protect more than 4,000 homes from damp and to ensure that the 1,000 currently unused homes are refurbished to increase the number available to services families.
With the onset of winter, we must also make sure that there are no repeats of last year’s experience, when some personnel were left hanging on the telephone for hours to try to get their heating fixed. I am glad to say that things are in a better shape on this front. Our accommodation contractors have increased resources by more than 40%. They have laid on additional out-of-hours staff and ensured better availability of parts, and they have upped our handling capacity, so that the average call is answered not within hours but within 29 seconds.
I began by saying that the world has changed beyond all recognition since the previous King’s Speech was delivered. The following is an extract from that speech in 1951:
“The measures to this end must include drastic action to reduce the growing inflation in our economy which threatens the maintenance of our defence programme and which, if unchecked, must cause a continuing rise in the cost of living”.
As Mark Twain is reputed to have said,
“History does not repeat itself, but it often rhymes”.
There is another similarity with those distant days and it is this: our determination, in the face of growing danger, to continue standing up for what we believe in, supporting our allies and investing in our people, so that we can look forward with resolve and hope.