Oral Answers to Questions
Grant Shapps Excerpts(6 months, 1 week ago)
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Mr Virendra Sharma (Ealing, Southall) (Lab)
The Secretary of State for Defence (Grant Shapps)
Our commitment to NATO is unwavering. In response to Russia’s illegal war in Ukraine, we have committed almost all our forces to NATO. We contribute to every single NATO mission and declare our nuclear deterrent to NATO. We show our commitment not least through our increase in defence spending to 2.5%.
Mrs Hamilton
The Public Accounts Committee has warned that
“deterrence can only be effective if our Armed Forces are credible.”
However, that has been “undermined” by recruitment issues, with more people leaving the forces than being recruited. What message does the Secretary of State think that sends to our NATO allies?
Grant Shapps
I am pleased to inform the hon. Lady and the House that we are now seeing a very high level of applications. Last week, the First Sea Lord told me that HMS Raleigh, where the training takes place, is the fullest it has been for more than eight years. We have seen a big increase in applications to all three services, and long may it continue.
Mr Sharma
I am sure the Secretary of State recognises that the UK plays an outsize role in NATO as a crucial bridge between the United States and Europe. Does he agree that the UK should be contributing its huge industrial expertise to EU defence and security programmes, offering NATO additional resilience and choice while securing sovereign capability through home-grown intellectual property?
Grant Shapps
The hon. Gentleman is absolutely right: our missions do indeed play an outsized role in NATO. We are the second biggest spender in NATO and the largest spender in Europe by a country mile, as Jens Stoltenberg, the Secretary-General, said to me the other week. As I said in my original answer, we are contributors to every single NATO mission, plus we declare our nuclear deterrent to NATO—other than France, we are the only country in Europe to do that. We will always look at ways to do more with NATO. Committing to 2.5% of GDP sends a very clear signal that we are on the side of doing that.
James Gray (North Wiltshire) (Con)
Maintaining freedom of passage through the Greenland-Iceland-UK gap is an essential task for NATO, particularly for the resupply of Europe in times of war. Does the Secretary of State agree that there is an equally big threat from half the Russian fleet being in the Arctic? Will he join us on Thursday 8 July at a symposium that we and NATO are holding jointly in Portcullis House to discuss defence in the Arctic?
Grant Shapps
That is a very important point, and questions have already been raised today about the size of the Russian fleet, what it is doing and where it is active. I will have to check the date, rather than answer my hon. Friend from the Dispatch Box, but I am much predisposed to attend the symposium.
Steve McCabe (Birmingham, Selly Oak) (Lab)
We are warned by the Secretary of State that we are in a “pre-war world”, yet we do not have sufficient training and resources to undertake high-intensity warfighting, and we do not have the equipment and stockpiles for our forces to survive a prolonged campaign. It has been 14 years; when will this be put right?
Grant Shapps
The hon. Gentleman may not be aware that we have just provided the largest number of personnel to the largest NATO exercise in Europe since the cold war—Steadfast Defender, which is the largest exercise for 40 years. The United Kingdom can be very proud of the number of people we supplied on land, in the air and at sea. I have to make a fundamental point to those on the Opposition Front Bench: we cannot just wish ourselves to security; we have to spend 2.5% of GDP, and we have to set out the trajectory to get there. That is exactly what the Government have done.
Owen Thompson (Midlothian) (SNP)
The Secretary of State for Defence (Grant Shapps)
The right hon. Gentleman asks about the Trident programme, but I am unclear about whether he means the Dreadnought submarine part of that. Of course, different parts of a programme often combine together, but the Dreadnoughts themselves will enter service in the early 2030s.
Owen Thompson
That was an interesting answer from the Secretary of State. The Government and the loyal Opposition have both pledged to commit to Trident renewal, investing obscene amounts of money that would be better used to improve our NHS, to help households with the cost of living and to support personnel or, indeed, veterans. According to the House of Commons Library briefing, Trident renewal is expected to cost £21 billion in 2022-23 prices, while one in three children is currently living in poverty. When will the Secretary of State agree that Trident renewal is an obscene waste of money, which could be put to much better uses?
Grant Shapps
I was recently at Faslane in Scotland, and I can tell the right hon. Gentleman that that is not what the people employed in the defence sector think about Trident. I can tell him something else: having stood at the Dispatch Box and been Defence Secretary, I know that the defence of this country is vastly supported by having our nuclear deterrent. In my view, every other issue that we face comes after the defence of this realm.
Sir Julian Lewis (New Forest East) (Con)
Although the right hon. Member for Midlothian (Owen Thompson) is a valued member of the Intelligence and Security Committee, I think the Secretary of State would agree that the SNP is very much on its own on the idea of scrapping the nuclear deterrent. I am put in mind of a quotation from the late Denis Healey, who said that
“once we cut defence expenditure to the extent where our security is imperilled, we have no houses, we have no hospitals, we have no schools. We have a heap of cinders.”—[Official Report, 5 March 1969; Vol. 779, c. 551.]
Is that endorsement of deterrence not as true today as it was when he gave it 55 years ago?
Selaine Saxby (North Devon) (Con)
The Secretary of State for Defence (Grant Shapps)
I am committed to ensuring that the defence uplift to 2.5% means that we spend the money as efficiently as possible. The tremendous work by my hon. Friend the Minister for Defence Procurement on the integrated procurement model is very important to the outcome of that spending.
James Daly
I am very pleased to hear my right hon. Friend commit to the efficient use of defence spending, which we may not have seen in the past. Will he comment on the excellent example of his recent announcement on saving Royal Marine warships and the fact that this Government have committed to building up to six more for the commandos?
Grant Shapps
That is absolutely right. It is very important that our Royal Marines are able to continue their activities, so not only will we keep the existing ships running but we have announced that we will build up to six new multi-role ships, which is all part of our programme to build 28 ships. That is why our shipyards are so very busy.
Samantha Dixon (City of Chester) (Lab)
Because of Government plans to mothball HMS Albion, key artefacts from the ship, including the sword of peace, were given to Chester town hall for safekeeping, and then, on 14 May, the Secretary of State announced that HMS Albion will not be mothballed. When would he like the artefacts back? Exactly when is HMS Albion going to be put to sea again?
Grant Shapps
We never announced that she was being mothballed, so I am very interested to hear about these artefacts. I was on HMS Albion the other week, so I will be very interested to engage on what has been removed.
Once again, I can clarify that both those ships—both used by our Royal Marines—will remain in active service. It is the case that more modern ships are being procured, which is possible only because we are prepared to put a date to spending 2.5% on defence.
Dave Doogan (Angus) (SNP)
Increased defence spending is obviously only a means to an end. It is not an end in itself. The Treasury rightly takes a jaundiced view of the MOD’s ability to spend money wisely so, to that end, can the Secretary of State advise the House on how much taxpayers’ money and defence budget was spent refitting HMS Argyll, only for her to be paid off immediately after she came out of refit?
Grant Shapps
There is no way that the Treasury, given its very tight hold on the fiscal regime, would approve spending 2.5% of GDP on defence if it did not have confidence in how we will spend it. Again, I refer the hon. Gentleman to the excellent work of the integrated procurement model, which will make all the difference. I am very happy to engage with him on individual defence decisions, but the fact of the matter is that if we do not commit to spending the money, we cannot put the pipeline in place to build things like the new ships and submarines we need.
Dave Doogan
I am unsurprised that I got no answer to my question because I never got an answer to that question on 8 January or to my point of order on 24 March. I was only informed by the Minister for Defence Procurement, who is whispering a response, I hope, into the Secretary of State’s ear, of the fate of HMS Argyll after I read about it in the media. Will the Secretary of State tell me a different answer, then: did BAE Systems approach the MOD to buy HMS Argyll, or did the MOD approach BAE Systems?
Grant Shapps
I am pleased that the hon. Gentleman recognises that my hon. Friend the Minister for Defence Procurement has written to him on the subject, and I have no doubt that he will wish to engage with the hon. Gentleman further.
Mr Philip Hollobone (Kettering) (Con)
The Secretary of State for Defence (Grant Shapps)
We are very mindful of the situation in Ukraine, particularly in Kharkiv where Russia is making, or trying to make, inroads. This is an existential battle for all civilised countries that believe in democracy and freedom, and it is the case that we must ensure that the world continues to keep up the efforts. It is not right for there to be pauses in our support and, when there are, the sort of losses we have seen on—I hope and believe—a temporary basis in Kharkiv around the villages to the north are an inevitable consequence of inaction.
Mr Hollobone
Lieutenant General Pavliuk, Ukraine’s commander of ground forces, recently confirmed that medium and short-range strike drones now kill more soldiers on both sides of the conflict than any other weapon. Is that not both a grim milestone in the history of warfare and the strongest possible signal that His Majesty’s armed forces must master that developing technology if they are to preserve and enhance their combat effectiveness?
Grant Shapps
My hon. Friend is absolutely right. It is one reason why this country has been at the forefront of providing drones. Indeed, we have made an enormous £325 million contribution to the drones coalition and provided 4,000 drones in the latest package, and there is a lot more to come for Ukraine. This bloody war is now killing, or causing casualties to, up to 1,000 Russians a day, and it needs to come to a stop.
Grant Shapps
I very much appreciate the hon. Gentleman’s support for the ongoing support to Ukraine of £3 billion a year. I gently say to him that it is not possible to provide that support without a route to getting there, with the 2.5%; otherwise, it will come out of the rest of the budget. I, too, read the story over the weekend, and it is simply not the case. We will have, in fact, 181 parachuters—exactly the same number as those who jumped in that location on D-day.
John Healey
We will also raise defence spending to 2.5% of GDP to meet increasing threats, but this is not the magic wand that will fix 14 years of Tory failure: the Army, cut; the Navy, cut; the RAF, cut. Even defence spending—at 2.5% under Labour in 2010—has been cut by £80 billion since. Is it not clear that the armed forces cannot afford another five years of Conservative Government?
Grant Shapps
The armed forces cannot afford a Labour Government if Labour cannot answer one simple question: when?
Paul Howell (Sedgefield) (Con)
Bob Blackman (Harrow East) (Con)
Grant Shapps
My hon. Friend is right to point that out, because some assumptions have been a little misplaced in this House until now. We will ensure that we can do a whole range of things that will help to make this country stronger and more secure. On that, he has my word.
Jessica Morden (Newport East) (Lab)
I thank the Minister for Defence People and Families on behalf of Falklands veterans and their families, including Mike Hermanis, who brought the issue to me, for releasing the documents relating to the bombing of the Sir Galahad in 1982, which exonerate the Welsh Guards. I know that the campaign, which includes my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty), will continue to seek the full truth, but does the Minister agree that instead of being blamed the Welsh Guards are owed our thanks for their service?
Peter Grant (Glenrothes) (SNP)
What is the policy of His Majesty’s Government on defence deals and arms sales to countries whose head of armed forces is under arrest warrant for alleged war crimes and crimes against humanity?
Grant Shapps
As the Minister for Armed Forces pointed out, the licensing regime is entirely independent of that. We support the country. We support the only democracy in that part of the world. We do not support the individuals in that Government; we support the country itself.
Suella Braverman (Fareham) (Con)
In Fareham, we are rightly proud of our world-class aircraft carriers docked in nearby Portsmouth, providing thousands of jobs and being a huge credit to our Royal Navy. However, we all know that neither the Queen Elizabeth nor the Prince of Wales has as many jets, small warships or submarines as originally planned. Will the Minister please tell me how further defence spending will be used to bring online the full complement of F-35 jets, for example, so that our carrier strike group has the full capability to meet the modern threats of today?
War Graves Week
Grant Shapps Excerpts(6 months, 1 week ago)
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The Secretary of State for Defence (Grant Shapps)
I beg to move,
That this House has considered War Graves Week.
The Commonwealth War Graves Commission does extraordinary work keeping alive the memories of the 1.7 million men and women who gave their life in the service of our country and the Commonwealth in both world wars. It tends to and maintains graves, memorials and sites at 23,000 locations in 153 countries around the world, from single graves to the largest cemetery at Tyne Cot, near Passchendaele, where almost 12,000 of the fallen from the first world war are buried and remembered. Among the 300,000-plus total casualties of Passchendaele was 20-year-old James Leaning, a private with the Hertfordshire Regiment. He was tragically killed on the first day of the battle, and is buried at the Menin Gate memorial in Ypres, which is lovingly maintained by the commission.
Beyond concerning itself with the neat-cut grass, the flower beds, and the mind-blowing numbers—row upon row—of pristine headstones, and of names on memorial walls, the Commonwealth War Grave Commission does even more extraordinary and priceless work to remind every generation about the service and sacrifice of those who died to forge our freedoms, and about the gargantuan human cost of war. We celebrate the commission’s work during Commonwealth War Grave Week, but I know that Members on both sides of the House will join me in expressing our appreciation for what it does to keep the flame of remembrance burning 365 days a year.
Mrs Theresa May (Maidenhead) (Con)
It is a great honour to have the Commonwealth War Graves Commission headquartered in my constituency. Given what my right hon. Friend has just said, I am sure that he will join me in thanking not only the staff based in Maidenhead, but those around the world who manage and maintain war graves—often in very difficult circumstances, in countries where other conflicts are taking place—so that the families of those who have fallen know that the sacrifice of their loved one is appropriately recognised.
Grant Shapps
I very warmly welcome my right hon. Friend’s contribution, and I join her in thanking her constituents at head office in Maidenhead for all the work that they do—often, as she rightly says, in incredibly difficult and sometimes conflict-live locations around the world.
I am sure that Members will join me in thanking my right hon. Friend the Member for Ludlow (Philip Dunne) and the right hon. Member for Kingston upon Hull North (Dame Diana Johnson) for their work as serving commissioners. I take my role as chair of the commissioners, and the Ministry of Defence’s long running relationship with the commission, extremely seriously. The Government provide nearly 80% of the commission’s budget—around £55 million each year—and the other member Governments of Australia, Canada, India, New Zealand and South Africa together provide the remaining 20%, in direct correlation to the numbers of each nationality commemorated.
An important part of the commission’s work is to continue the search to identify all those who gave their life but have yet to be commemorated, and to tell the stories behind the names carved on headstones and memorials.
Christine Jardine (Edinburgh West) (LD)
On the point about updating graves, over the Easter recess, I met people from the Spitfire AA810 project, which aims to improve our understanding of the work undertaken by pilots in the photographic reconnaissance unit. One of the project’s major tasks is learning who was part of the unit, as there is no complete listing of those who served in Royal Air Force photo reconnaissance during world war two. It has identified around 420 British casualties among those who served, as well as pilots from across the Commonwealth. Does the Minister agree that we should ensure that war graves and other memorials—perhaps one to those Spitfire pilots—are updated and expanded as we find out more?
Grant Shapps
The hon. Lady is absolutely right. A feature of the fog of war, but also of record-keeping at the time and in the many years that have passed since, is that it is sometimes difficult to piece things back together. We in this House all appreciate the efforts of the commission and the importance of ensuring that we recognise every single name whenever new information comes to light.
The commission is playing a central role in the Government’s D-day 80 commemorations, including by bringing the generations together through its Legacy of Liberation torch relay. That torch was passed on by the Prime Minister earlier today at Horse Guards. I was there, and was delighted to host that relay, which will end with young people passing the flame to veterans at the commission’s Bayeux cemetery on D-day.
The commission’s war cemetery sites include one in Gaza, an active war location. This point has been discussed before, and I am pleased to be able to share with the House some news that has emerged, despite the very dire humanitarian situation on the ground. I was recently asked to help with the safe passage of Commonwealth War Graves Commission staff out of Gaza, and I am heartened to confirm that just last week, five of the commission’s six staff who wanted to leave made it safely to Egypt, along with their immediate families, where they will join the commission’s in-country staff until it is safe for them to return.
Like any large organisation in inflationary times, the commission faces and has faced significant budgetary challenges, as well as costs associated with its ageing sites, many of which were not built with any kind of longevity in mind. It has also had to adapt its sites to the impact of changing weather and climates. In recent years, the Ministry of Defence has worked closely with the commission to develop a new strategy to help tackle those challenges sufficiently, which includes working to make sure that the commission remains both relevant and affordable in the years ahead. As a consequence of that work, the commission put forward a bid to its member Governments for a temporary uplift in funding over three years. I am pleased to tell the House that I approved that bid earlier this year, in order to ensure that the commission can overcome the challenges it faces and continue to preserve its sites, which are such a tangible and important touchstone for our nation’s history, and such an important part of the story of our national life. I was pleased to be able to provide an uplift of £2.6 million a year over the next three years, and I am also pleased to report that the sum was matched in the normal proportions by our partner Governments.
Without the extraordinary work of the Commonwealth War Graves Commission, memories of all the sacrifices made—all the work, effort, blood and toil, without which the freedoms that we have today would not exist—might start to fade. This morning, I met a 99-year-old gentleman who fought in the second world war. Although he was still quite sharp, his frailty reminded me of how easily those memories could slip from the public’s consciousness. Stories of the service and sacrifice of many from all parts of the United Kingdom and all over the Commonwealth will later simply not be able to be told first hand in the way that he told me this morning about his experience during the war. Vital lessons about the fragility of freedom and democracy and the need to cherish and nurture them, to stand up for them, and for allies to sometimes come together and fight and die for them, might also fade.
History has so much to teach us, but only if we can access it. Stories of service and sacrifice—such as that of 20-year-old James Leaning, the private from my home county of Hertfordshire, whom I described at the beginning of my comments—have so many lessons for future generations, but only if we preserve and cherish them, and pass them on. That is why we must always support the Commonwealth War Graves Commission and the extraordinary work that it does.
Defence Personnel Data Breach
Grant Shapps Excerpts(6 months, 2 weeks ago)
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The Secretary of State for Defence (Grant Shapps)
I would like to update the House on a data incident involving activity by a malign actor. In recent days, the Ministry of Defence has identified indications that a malign actor gained access to part of the armed forces payment network. That is an external system, completely separate from the Ministry of Defence’s core network, and it is not connected to the main military human resources system. The House will wish to note that it is operated by a contractor, and there is evidence of potential failings by it, which may have made it easier for the malign actor to gain entry. A specialist security review of the contractor and its operations is under way, and appropriate steps will be taken.
The contractor-operated system in question holds personal data of regular and reserve personnel and some recently retired veterans. That includes names and bank details, and—in a smaller number of cases—addresses. In response to the incident, we have undertaken significant and immediate action, enacting a multi-point response plan to support and protect our people. I would like to provide the House with details of this eight-point plan.
First, we immediately took the system offline. That has secured it against similar future threats. Secondly, we have launched a full investigation, drawing on Cabinet Office support and specialist external expertise to examine the potential failings of the contractor and to minimise the risk of similar incidents.
Thirdly, while our initial investigations have found no evidence that any data has been removed, as a precaution we have today alerted those service personnel affected through the chain of command. In addition, we are also sending out letters to a small number of veterans who have retired and who may have been affected as an additional precaution. The House will wish to note that the vast majority of the UK veterans community is, however, unaffected.
Fourthly, specialist advice and guidance on data security has been shared and will be available on gov.uk later today. Fifthly, we have additionally set up a helpline to support individuals. The number for the helpline is 01249 596665, and it will be available from today.
Sixthly, we are providing a commercial personal data protection service for all service personnel. That facility will constantly monitor each individual’s personal data and notify them if there are any irregularities. Even though we do not believe that their information has been stolen, we intend to do that in order to bring further peace of mind.
Seventhly, welfare and financial advice is available where needed through each individual’s chains of command.
Eighthly, on becoming aware of the incident, the MOD stopped the processing of all payments and isolated the system. I want to provide further detail on that step. We are making changes to the system to ensure that it is secure before recommencing payments through it. I confirm, though, that, in the meantime, all April salaries have been paid. Some service personnel will have experienced a slight delay in receiving some expense payments; however, we expect that to be fully resolved today, with the money in their accounts by Friday.
Furthermore, I confirm that we are ensuring that all high-value payments remain unaffected. For example, all outstanding Forces Help to Buy and terminal benefits payments have been facilitated by alternative secure transfer. As mentioned, salary payments and pensions for veterans have not been affected, and we do not expect them to be.
For reasons of national security, we cannot release further details of the suspected cyber-activity behind the incident. However, I can confirm to the House that we do have indications that this was the suspected work of a malign actor, and we cannot rule out state involvement. The incident is further proof that the UK is facing rising and evolving threats. As I set out in my speech at Lancaster House in January, the world is, I am afraid, becoming somewhat more dangerous. Last month, the Government therefore announced an increase in defence spending to meet those new threats, reaching 2.5% of GDP by the end of the decade.
Following this incident, I can announce today that although this incident is entirely unrelated to our own MOD networks, we are also reviewing all personnel data networks to ensure that our people’s data is secure. This was the work of a malign actor who compromised a contractor-run network entirely separate from the MOD core system. However, as I have said, we cannot at this stage rule out state involvement from elsewhere. This eight-point plan outlines the immediate and significant action we are taking to protect our most precious resource: our people. Even though this occurred on a contractor’s system, with a malign actor involved—and we cannot rule out foreign state involvement—I want to apologise to the men and women affected. It should not have happened, and this eight-point plan seeks to ensure that it is put right and cannot happen again. I commend the statement to the House.
John Healey (Wentworth and Dearne) (Lab)
There is deep concern in the House about this grave security breach. The House will accept and note the Defence Secretary’s apology to armed forces personnel. We welcome the statement and the multipoint plan, and I thank him for early sight of it.
There will indeed be serious concern in the MOD that news of this big data breach was splashed across the media before the Defence Secretary could set out the facts to Parliament. My overriding concern is for the safety of serving personnel and veterans affected, worried about the risk to themselves and their families and hearing first about the data being hacked from the media and not from the MOD. Our military put their own security at risk when they serve on the frontline, and the very last thing they should have to worry about is their data security back home. Any such hostile action against our forces is utterly unacceptable, and their protection must be the first-order priority for the Defence Secretary, whether on operations abroad or for their data at home.
Despite the Defence Secretary’s statement, he still has many serious questions to answer. On the breach itself, who held the data that was hacked? When was it discovered? When were Ministers told? How was it leaked to the press? On the contractor, Defence Business Services says that Shared Services Connected Ltd has the MOD contract for core payroll and other business services. How many contracts does SSCL or its parent company, Sopra Steria, have with the MOD? What action has been taken by other Government Departments with similar SSCL contracts? On forces personnel, how many serving personnel and veterans have been hit by the hack? Has every serving full-timer and reservist been affected? What support is being offered?
On last night’s media reports, has a leak inquiry been launched? The MOD’s data security record is getting worse while threats against the UK continue to rise. There has been a threefold increase in MOD data breaches in the last five years, with 35 separate MOD breaches reported to the Information Commissioner’s Office and a £350,000 fine last December. Sub-contractors are well known to be the soft underbelly of security, and this latest hack raises serious questions about how the MOD manages its outsourced services.
The media have clearly been briefed that China is behind the hack, but the Defence Secretary tells us only about a “malign actor”. The Government rightly have a rigorous system before official accusations or attributions are made, but if this data breach is found to have been carried out by a hostile state, it would represent a very serious threat to our national security.
The Government have been warned. The Intelligence and Security Committee confirmed in its China report last year that cyber-attacks by hostile states now happen daily, and now our wider armed forces community are being targeted. However, the Committee also found there was no cross-Government China strategy, “completely inadequate” resourcing, and defence intelligence with no systematic record of resources focused on China.
The Defence Secretary knows that we are united in this House. We will not stand for any such attacks and, with threats increasing, such flaws in our cyber-security must be fixed. Only then will we make Britain secure at home and strong abroad.
Grant Shapps
I thank the right hon. Gentleman for his words about the united way in which this House tackles such issues, and there is much of what he says that I can agree with. He asked a number of questions and I will try to rattle off some responses to him.
The chosen date to announce this breach was today, to ensure that we would be able to secure the systems, back up and make sure everyone had their payments made, even if it was not through those systems. The media release last night was coincidental and unwelcome, as far as we were concerned, but unfortunately a lot of people are involved in this. He asked how many personnel had been affected, and the number is 272,000. I stress that that means it is up to that number; the number is still being refined and will probably end up lower, but none the less it is a large number of people and they may have noticed that bank payments were not made, so some of the media will have picked up on that.
The right hon. Gentleman is right to say that the welfare of our personnel is our absolute first priority. I hope that he will agree that the eight-point plan focuses heavily on that and consists of ensuring that they are getting every bit of help and support required. Although we do not think the data is necessarily stolen, we are making the assumption that it has been in order to ensure that personnel get the support required, including through their own data monitoring services, which we are providing to each and every one of them, whether or not they are affected in this particular case.
The right hon. Gentleman has named the contractor involved, and I can confirm that that is the correct name, SSCL. As I mentioned in my statement, we have not only ordered a full review of its work within the MOD, but gone further and requested from the Cabinet Office a full review of its work across Government, and that is under way. I also briefly mentioned specialists being brought in to carry out a forensic investigation of the way this breach has operated.
Data breaches and this level of attack are nothing new, but the right hon. Gentleman is right to point out, and the House will be aware, that these attacks are growing, to the extent that the MOD’s networks are under attack millions of times per day, and they successfully repel those attacks millions of times per day. I stress again, particularly for servicemen and women listening, that this breach does not contain data that is on main MOD systems, and which is of even greater concern to us. It is right that we invest in protecting the systems to ensure that these data attacks are repelled and are not successful.
I would gently say to the right hon. Gentleman, as I think he might expect me to, that one of the best ways to do that is to invest in defence. That is why we are committed to a 2.5% increase, with a fixed timeline and a plan to pay for it, because it means we will be able to do more things, including investing further in cyber-security.
Sir Jeremy Quin (Horsham) (Con)
SSCL was a joint venture with the Cabinet Office—I think there was a legacy minority stake held until last year. As is public, it also provides services to, from memory, the Metropolitan police, the Home Office and the Ministry of Justice. I welcome the Secretary of State’s remark that the investigation will be across Government, because absolutely all areas of Government that are exposed need to be doing the necessary. What specialist support is he receiving from elsewhere in Government, and when might the malign actor be named?
Grant Shapps
As my right hon. Friend will know, the process of getting towards naming—if, indeed, a state-sponsored actor is involved—is a specific process set out by the Butler reforms, and it does take some time to reach such conclusions.
My right hon. Friend asked specifically about the ongoing work with the particular contractor. The Cabinet Office is calling in specialist analysts who will carry out that work over the coming weeks. There are two separate tracks in respect of the contractor in the MOD but also, separately, in the different places across Government that my right hon. Friend rightly identified. I stress to the House—because I suspect that this will be brought up a number of times—that we expect very high standards from our contractors that work with the lives and livelihoods of our service personnel, so we will take all appropriate actions.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
I thank the Secretary of State for advance notice of the statement. There was not really much to disagree with in the questions from the shadow Defence Secretary, but I will perhaps ask for a little bit extra. On what the Secretary of State said in relation to there being a malign actor, I am sure that the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith), who has been bobbing, will not miss the wall when he asks the Secretary of State a question.
There is a bit of concern about the contractor, because it has previous when it comes to delivering Government contracts. Notably, there was a scandal over NHS business services and the running of immigration application systems. Given the seriousness of this issue for the Ministry of Defence, will the Secretary of State advise the House on whether he has confidence that the contractor is able to continue to deliver the contract? Will he consider a review of the specific armed forces payment network element and whether the contract should be brought back in-house and delivered by the MoD, rather than by some conglomerate based in Paris?
Grant Shapps
I can confirm that that review is already under way, and I can go further by saying that I am deeply interested in how this contractor, or indeed any other, behaves. I cannot jump straight to the conclusion of that research, and I do not think the hon. Gentleman would expect me to jump straight to the conclusion of a security review. To answer his question in a more straightforward way, if it were found that there is a better way to do this and we could not be satisfied on security, we would of course consider other options, such as those he suggested.
Alicia Kearns (Rutland and Melton) (Con)
With one in five residents of Rutland being veterans or serving personnel, this news will be very concerning to our communities. In the last six weeks it has been concluded that the Chinese Communist party has been responsible for hacking our armed forces, for conducting a cyber-attack on the Electoral Commission and for cyber-attacks on French and British MPs; a German aide was arrested on espionage charges; and two British men were charged with obtaining information useful to an enemy. Attacking our institutions and the people who defend or represent our people is not the act of an ally or a friend, and the British police have explicitly deemed it the action of an enemy. So what is my right hon. Friend doing to make sure that we finally get a cross-Government consensus and get the Foreign Office to change our position on this matter? These are not the acts of a friend or ally; these are the actions of a country that considers itself anathema to our values, our activities and those who defend our interests.
Grant Shapps
My hon. Friend knows that we take the view that it is absolutely wrong for Members of Parliament to be in any way sanctioned by other countries—I know that she has been sanctioned; I have been sanctioned in other areas, although not by that particular country—and she is right to point out those cases that have been proven, including when the Deputy Prime Minister stood at the Dispatch Box recently and talked about electoral data. However, it is not the case in this circumstance—I do not want to mislead the House—that there is a proven connection. I stress that although we can see that a malign actor is involved, we have yet to make the full connection to a state. Although, as I pointed out in my statement, I cannot rule out that that might be the conclusion, but we have no evidence to conclude that yet.
Derek Twigg (Halton) (Lab)
When did the MOD last carry out an audit or review of the security precautions put in place to stop a cyber-attack with this contractor, if it did at all?
Grant Shapps
I can tell the House that, specifically for the MOD estate, we do that all the time—every day. With regard to this particular contract, I am aware that we have been in contact with the contractor about its cyber-security arrangements. For the purposes of national security, I cannot go into detail in the House, but I can perhaps provide the hon. Gentleman with a little further context separately, if that is helpful.
Sir Julian Lewis (New Forest East) (Con)
I welcome the fact that the helpline has been established so quickly, and I encourage the Government to be proactive in publishing advice on what people can do, for example to secure their bank accounts. What specialist advice does the MOD routinely seek before outsourcing data on service personnel to external contractors, and what standards must be verified before such outsourcing to a civilian organisation is allowed to take place?
Grant Shapps
It is obviously completely unacceptable for a contractor to leave our brave servicemen and women in this position, so we take it incredibly seriously and are very concerned by what has happened. My right hon. Friend asks about the checks that are in place. Of course, this contract long predates current Ministers, but we are checking through the details at considerable speed. As Members can imagine, we think the contractor has many questions to answer, and the ones that he asks will be included in them.
Neil Coyle (Bermondsey and Old Southwark) (Lab)
The Intelligence and Security Committee reported last year that the Government were not protecting the UK sufficiently against cyber-attacks, including from China and particularly against our armed forces. The Secretary of State says today that he is sorry, but why did he fail to listen?
Grant Shapps
As I mentioned a few moments ago, the MOD successfully defends against millions and millions of attacks each day. The threat is very real—we have that in common with all critical national infrastructure, other Departments and many businesses. That is one reason why the Government have committed to increasing defence spending to 2.5% of our GDP, with a timeline attached, so we will have more money to spend on defending against those attacks. It is one thing to wish for that defence but another to act, which is what we have done.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
I welcome my right hon. Friend to the Dispatch Box. We know now that the British Government were warned by the American security services nearly two years ago that the Electoral Commission’s system had been hacked and that a number of MPs had been hacked. In the two-year period since, the Government have said nothing about China’s role—it was China, and they were warned at the time. In fact, we now know that far more MPs than we thought—nearly 40—were hacked, which was never reported at the time. I am concerned that the Government refuse to say who is responsible in this case, and that it may be another two years before we discover it or it is said publicly.
May I ask my right hon. Friend a very simple question? The FBI director has said that China has a cyber-espionage capacity so vast that it dwarfs everybody else’s, and we now know the record of all the direct attacks on us in the House, as the Chair of the Foreign Affairs Committee, my hon. Friend the Member for Rutland and Melton (Alicia Kearns), said. Given that the Deputy Prime Minister said in 2023 that the Government were considering placing the People’s Republic of China into the enhanced tier of the foreign influence registration scheme, why in heaven’s name do we not now place this malign actor in that tier and deal with it accordingly?
Grant Shapps
I welcome my right hon. Friend’s comments about attribution. MPs and the electoral register have been hacked, and he therefore encourages me to jump to the conclusion at the Dispatch Box that the malign actor is China in this case as well. I am simply unable to do that at this stage. He would expect me to follow due process, but I rather support his view that if attribution is required, it should happen in a timely and speedy manner. I undertake from the Dispatch Box to ensure that that happens in this case, and that we do not have many months or years pass by without it being mentioned.
Richard Foord (Tiverton and Honiton) (LD)
The malign actor did not need to access the armed forces payment network to find out the salary of a British private soldier. A quick search of Google—or indeed Baidu—reveals that the salary of a British soldier on completion of initial training is less than £24,000 a year, which is less than the average UK salary of £35,000 a year. Russia is currently paying its soldiers a starting salary of more than 2.5 million roubles for fighting in Ukraine. Will the data breach by the Conservative Government’s contractor shame the UK Government into paying some of our lowest-paid servicepeople a decent salary?
Grant Shapps
That was creative, if nothing else. The fact that we paid a nearly 10% pay increase—9.7% last year—to many ranks of our armed forces, and that the Conservative party has committed to spending 2.5% of GDP, which is a pledge I have not heard repeated by the Opposition, rather suggests that we are prepared to do something about pay and retention.
James Gray (North Wiltshire) (Con)
I very much welcome the great seriousness with which the Secretary of State is taking this appalling data breach, because it really has been awful. I too am convinced that the prime contractors have very significant cyber-security requirements, so it is extremely unlikely that a prime contractor would be hacked in this way. My understanding is that subcontractors and sub-subcontractors down the food chain do not have the same level of cyber-control. We have something called the Cyber Essentials accreditation, but even that is not compulsory. Will the Secretary of State look at the way subcontractors and sub-subcontractors are checked for cyber-security and make that accreditation compulsory rather than voluntary?
Grant Shapps
The concerning thing about this particular incident is that SSCL is a primary contractor, rather than a subcontractor, but my hon. Friend is absolutely right to raise the wider issue. The answer is yes: our intention—indeed, our instruction—is to go right the way through. As I said in my initial comments, we take this incredibly seriously. It is unacceptable that it happened, and we will take every possible measure, once we have got to the forensic truth of what happened, including against the contractor and any subcontractors.
Justin Madders (Ellesmere Port and Neston) (Lab)
I understand why the Secretary of State is reluctant to name China, but it seems that every Member in this Chamber believes it is probably responsible for the breach; that is certainly what the media are reporting. I hope the Secretary of State is able to commit to a very clear timescale for coming back with some clarity on that.
I want to ask the Secretary of State about a point that has been made by a number of Members. The outsourced contractors are clearly the weak spot in our system. Will he commit to examining and analysing every single subcontractor, with a view to bringing them back in house in the light of the threats we face?
Grant Shapps
The MOD, as is the case with most militaries, uses a lot of contractors and subcontractors. Let me answer the hon. Gentleman’s question directly: yes, the review will encompass all that work, and if we believe we can do this better—many Members may conclude that this would not have happened had that data been held in the MOD and on our own systems—we will endeavour to do that.
Bob Seely (Isle of Wight) (Con)
First, I thank the Minister for his call this morning. It is a little frustrating to be told that one’s bank details and national insurance number are winging their way to Beijing or wherever they have gone. Given that I was also caught up in the Inter-Parliamentary Alliance on China breach, I wonder whether I am in the running to be the most hacked MP in Britain.
If it was weak security with the contractor, does that mean it was not a state actor? If the contractor had a high level of security, do we assume it is more likely that a state actor was behind the breach? If there was a state actor behind it, do we assume that it is China, because it has form on stealing mass data and has done so from the US federal Government?
Grant Shapps
I thank my hon. Friend for his service, and I am sorry that he had to receive that phone call about what has happened. I stress that we do not believe the data has necessarily been stolen—there is a danger of running a couple of steps ahead. We have responded with the eight-point plan as if it has been stolen, because we think that is the best position to put everybody in, including my hon. Friend, given the seriousness of the potential breach. I will struggle to answer the detail of the rest of his questions for national security reasons that I hope he will understand. Once again, I undertake that the next stage of this, which is a process set out in the Butler reforms, will be carried out quickly and efficiently.
Andrew Western (Stretford and Urmston) (Lab)
We know that the Government consider it likely that China is responsible for this hack, coming hot on the heels of the revelation that it was responsible for the hack on the Electoral Commission, as was confirmed in March. If it transpires that China is again responsible, will the Government finally stop talking tough on China and labelling it an “epoch-defining challenge”, and start acting accordingly by taking serious measures up to and including diplomatic expulsions?
Grant Shapps
I have outlined the Government’s position on this a couple of times, but I do want to note that the hon. Gentleman says “consider it likely”; I am saying that I cannot rule it out. Those are two different things. We need to allow for this forensic work to go ahead before we start attributing it. However, if there is attribution, there will clearly also be consequences.
Mr Mark Francois (Rayleigh and Wickford) (Con)
Well, at least it wasn’t Capita. This will be very worrying for service personnel and their families and for veterans, who will feel disrespected by the fact that the Government seem to have briefed that it was China overnight and then not had the nerve to confirm that in the House today because someone rang up from the Foreign Office and said, “Don’t do that.” When, oh when, will we start standing up to the Chinese in the way that they are clearly not frightened of doing to us?
Grant Shapps
Indeed, it was not my right hon. Friend’s favourite contractor on this particular occasion. None the less, we will be carrying out a comprehensive review of the contractor’s work. Again, I want to make it clear to the House that we did absolutely everything that we could to avoid this being made public until I had the opportunity to come to the House. We proactively endeavoured to ensure that our own approach towards removing the data that was online—closing that system down, ensuring the personnel were paid, making sure the alternative payments system was in place for expenses and other things—could all happen ideally before we came to the House. We most certainly did not wish to see nor brief out the story. Unfortunately, as a large number of people were impacted or potentially impacted, it was almost impossible to expect them not to go and talk about it, and I believe that that is how it came into the public domain.
My right hon. Friend is absolutely right about this. He is a champion for ensuring that these contractors do the jobs they are actually paid to do. We are now trawling through all the detail and, as I have said before, we will not leave this hanging. We will take every appropriate action because, as he might imagine, my entire team and I are very concerned about the welfare of our personnel—brave men and women who do not deserve to have this happen to them. We do not want to see it happen in the name of the MOD, either.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State for his statement and for his positive response in trying to assure our personnel. We saw this type of data breach with the Police Service of Northern Ireland, where information on officers and staff leaked, and the stress was palpable. What steps are the Secretary of State and Government taking to ensure that staff feel safe and protected, and that there is funding available for service personnel protection if necessary?
Grant Shapps
One big difference in this case is that it does not involve a member of armed forces personnel who did something wrong—this was done to them. It is not a case of someone opening an attachment or something of that nature. This is something that has happened through the system that the contractor ran. The hon. Gentleman is absolutely right to focus, as I hope I have today and as has the whole House, on the personnel and what it means to them, and in particular on reassuring them. I am grateful for the attitude and approach of the House, which I think will have largely done that for service personnel.
I will not reiterate each of the eight points. However, through the chain of command, the phone number that is now available, the information going on gov.uk and the wraparound services, including the fraud-checking service that staff will now individually have access to and many others, I hope personnel are reassured. Remember that we do not think the data has necessarily been stolen, but we are behaving as if it has in order to provide absolute security.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
I thank the Secretary of State for coming to the House so speedily with a great deal about the action that is being taken. I am concerned both about the reluctance to name the malign actor and about the tendency for things to get lost in the Cabinet Office, which has become such a morass of activity.
Who in the Cabinet Office is charged with this responsibility? Is it the National Security Adviser? Which Cabinet committee is overseeing this? Is it the National Security Council itself? I hope so. Which Deputy Chief of the Defence Staff is responsible for cyber-security? Who will be responsible for making sure that all these elements are working together to conduct this review very thoroughly? I suggest that the Secretary of State brings forward a White Paper very shortly on the lessons learned from this incident and others, to provide the reassurance that not least our service personnel need.
Grant Shapps
I stress again that it is not that I am reluctant to name the malign actor, but that we need more information before I can do so. We are not trying to avoid giving the House this information; we need to be certain before we are able to do so.
My hon. Friend asks who in the Cabinet Office is charged with this responsibility, and I have spoken directly with the Deputy Prime Minister to make sure it is set from the very highest levels. My hon. Friend also asks who has overall responsibility, and it is the excellent Chief of Defence People, Phil Hally, who is very good. He has now chaired, I think, 11 internal meetings on this issue, in order to get everything ready for this afternoon. As I have said, it is with deep regret that we did not quite make it to today before the news started to break late last night. Phil Hally is responsible and will continue to be responsible for those efforts.
James Sunderland (Bracknell) (Con)
As an affected veteran, I feel a responsibility for representing and championing my former colleagues in this matter. Will the Defence Secretary please assure me on three particular areas? First, will he assure me that an appropriate diplomatic protest has been made, or will be made, to the guilty party? Secondly, will assurance be given to the House in due course that the firewall protocols given to defence contractors will match or exceed those given to the MOD itself? Thirdly, will he assure me that the information that has been hacked, if indeed it has been hacked, will be sacrosanct so that no malign actor can gain access to bank accounts after this event?
Grant Shapps
I thank my hon. and gallant Friend. He makes three excellent points, and I absolutely assure him that the guilty party will be brought to book. I also assure him that the MOD was not responsible for failing to issue correct instructions, in terms of the contractual requirement to keep this data safe.
Members on both sides of the House have pushed this point hard, and I will make sure that it is not buried or lost in process. I will return to this House. I cannot promise to do that in the next few days, as the Butler process takes a while, but I will not allow it to drop. The House has my undertaking on that issue.
Jason McCartney (Colne Valley) (Con)
May I delve into how veterans are being reassured that their data is not being used by, for example, financial scammers? As a Royal Air Force veteran, I am the proud president of the RAF Association in Huddersfield, which I know will be very worried about this issue. Will the Secretary of State be using forces charities such as the Royal Air Forces Association, the Royal British Legion, the RAF Benevolent Fund, SSAFA and many more to reassure veterans that their data will not be used by financial scammers?
Grant Shapps
My hon. Friend will be pleased to hear that we have written to each of those organisations today, both to enlist their support and to provide the detail and information to which the House has been privy this afternoon.
In answer to my hon. Friend’s specific question, a commercial organisation will now be monitoring the personal data of the individuals affected. That would include, for example, the data being used in a suspicious way, appearing on the dark web, or any other outcome. In a way, an additional layer of security will be attached to these individuals. Again, I can confirm that, as of this moment, we have seen no suspicious activity at all on those accounts.
Sir John Redwood (Wokingham) (Con)
Is there any indication of how the thief wanted to use the data, if they have actually got it? Have all the staff been advised to change accounts, passwords and internet access in every way, so that no further harm can occur?
Grant Shapps
In answer to the first point, no, there is no indication. On the second point, our regular approach—I speak as someone with an MOD account—is that passwords have to be changed regularly in order to continue to use the system, so those security measures are in place. People do not need to change their bank accounts as a result of this incident. Apart from anything else, using someone’s bank details to make a payment somewhere else would be technically difficult, as a new account would need two-factor authentication, so it is not necessary for people to change their accounts. The monitoring service will provide an overlay of additional reassurance to them.
Mr Tobias Ellwood (Bournemouth East) (Con)
I welcome the Defence Secretary’s statement in qualifying the scale of the breach and the operational changes he is going to introduce. More strategically, it illustrates how the changing character of conflict is impacting our world, with the digital terrain being as important as the physical terrain. That said, had this been a physical, kinetic attack on MOD main building, the House would be demanding some form of proportionate response. Indeed, it could be argued that it would be a NATO article 5 situation. Will the Secretary of State consider the bigger picture, because the rules of engagement and the Geneva conventions are out of date? The Secretary of State is right to say that threats are rising and evolving, but we need to address how errant nations are held to account and what constitutes a proportionate response to a cyber-attack.
Grant Shapps
It is certainly true to say that a malign actor is involved—we know that. It is possible, and I cannot rule it out, that it is attached to a country, but as soon as I say that everyone assumes it therefore is attached to a country. I am not in a position to confirm that at this point, simply because incredibly detailed forensic work is required to get to that point. My right hon. Friend is right that people differentiate, in some senses, between physical attacks and cyber-attacks, but both can be incredibly serious and have enormous consequences. Again, because we do not believe that the information has, in fact, been stolen and because we are monitoring it very carefully through the eight different measures, I stress that in this case there is a degree of feeling that we have caught it and we are controlling it. However, my right hon. Friend’s wider point is absolutely correct.
Jesse Norman (Hereford and South Herefordshire) (Con)
The Secretary of State has been clear about the serious nature of the breach; he has said so several times from the Dispatch Box. He has also said that the contractor failed to follow MOD guidelines and therefore is culpable, to some degree, as far as we can see so far. What sanctions are in place to penalise that contractor? What sanctions will the Secretary of State apply at the limit if that contractor is found to be in breach? Finally, he mentioned addresses. Roughly how many addresses have potentially been leaked? I am deeply concerned not just about bank details but about the safety and wellbeing of those soldiers.
Grant Shapps
I share my right hon. Friend’s concern about the safety and wellbeing of those soldiers. Thankfully, the answer is that very few addresses have been leaked—a very tiny number. On sanctions and what will happen, we must not jump the order of events. We have to be confident we are able to run through the audit trail of exactly what has happened. However, I again make it clear from the Dispatch Box that if negligence has been involved, then we will take the strongest possible action as a result. He and the whole House understand that that is our concern this afternoon.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
May I seek my right hon. Friend’s reassurance that there is cross-Government working to identify the vulnerabilities in the system? We have heard this afternoon that a subcontractor’s involvement was identified as a vulnerable point. Recently, my constituents had their medical records hacked because, as a small, rural authority, it was identified as more vulnerable. Are we, across Government and across the United Kingdom, seeking out those vulnerabilities to make our data safer from malign actors and indeed from plain criminals?
Grant Shapps
I reassure my right hon. Friend that the reason I immediately asked the Cabinet Office to be involved is that, although I can do checks on that contractor and others across the MOD and MOD-related contracts, I cannot do so across the rest of Government. That is exactly the job that the Cabinet Office will now undertake. When data is stolen—or rather exposed and potentially stolen—it causes a great deal of concern and we want to ensure that that cannot happen. I reiterate that the data was not being held by the MOD systems and did not affect the MOD systems, but as Secretary of State I recognise that our responsibility extends to whoever is holding the data for our personnel, and I apologise to those involved again. This should never have happened and we will make sure it is put right.
Richard Graham (Gloucester) (Con)
The Defence Secretary has reassured us that there is no evidence yet of any data having been removed and there is no suggestion that the MOD’s core system and HR network have been compromised. Can he confirm whether there is any evidence yet of ransomware being used? What assessment has he made of whether any data has been published? Although he reassured my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) that the number of addresses that have been accessed is small, can he confirm that those veterans whose addresses have been accessed will be advised accordingly so that they can take security precautions, if need be?
Lastly, on the wider points, can the telephone helpline be used by anyone concerned about late payment of miscellaneous expenses? Will the Secretary of State relay to the Deputy Prime Minister my strong view that the time is ripe for a Cyber Re, or reinsurance, in the same way that we created Flood Re a while back, precisely to deal with the likely costs for small authorities, such as those alluded to, of having to repair their cyber-defences against such future attacks?
Grant Shapps
It is characteristic of my hon. Friend to include five questions in his one. The answers are: no evidence of ransomware; no evidence of data published; a very small number of addresses were accessed, and yes, those people will be contacted individually or as a group if need be; and late payments are unlikely to cause much of a difficulty, as I have said, because they will all be resolved by today and the money will be in people’s accounts either now or by the end of the week. However, if personnel have experienced any particular issues, they should take that initially through their chain of command. The phone number is also available and individual instances will be looked at on a case-by-case basis, as he would expect. He has probably taken me slightly out of my area on Cyber Re, which I think will be something for the Cabinet Office to consider. It sounds like a smart idea, but I am afraid he has got me outside my tracks.
Mr Deputy Speaker (Mr Nigel Evans)
As the hon. Gentleman waited very patiently to ask those last five questions, I let him get away with it. I thank the Secretary of State for his statement today and for responding to questions for over three quarters of an hour.
Defence
Grant Shapps Excerpts(6 months, 2 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Defence (Grant Shapps)
I beg to move,
That this House has considered defence.
In recent weeks, our armed forces have been required to use force to protect international shipping and to protect our allies. Our armed forces are the best of us; we increasingly need them, and we are increasingly asking more of them as well. When the threat picture changes, the first duty of Government is to respond, which is why this Government have committed to increase defence spending to 2.5% of GDP by 2030, the biggest increase in spending for a generation.
Grant Shapps
I will just make a bit of progress first, keen as the right hon. Gentleman is. That will result in a £75 billion cash boost to our nation’s defences over six years from a flat cash baseline. Although we have had a long-held commitment to hit 2.5% when financial conditions allow, delivering that commitment now involves choices.
Grant Shapps
No, it does not. The outcome from the defence budget, which must be the basis upon which the right hon. Gentleman is judging last year’s, includes supplementaries. In particular, it now includes the additional half a billion, which I can tell the right hon. Gentleman I chose to send to Ukraine as an active decision, rather than it coming into our main budget; I feel that that would have the support of the House. When we include all that, the budget increases. In any case, it already increased by 1.8%.
Grant Shapps
I know that the right hon. Gentleman wants to continue this debate, but the fact is that it does as soon as we include the supplementaries.
Grant Shapps
I will not for the moment, because this point has been discussed ad infinitum. In any case, we are offering another £75 billion in cash terms, which I note that the Labour party has yet to do because the funding requires a determination, in our case, to get the civil service back to pre-covid levels and to help pay for the expansion of our defence. It requires sound economic management and, above all, an understanding that an investment in deterrence today is wiser and less painful than paying to fight a war tomorrow.
John Spellar (Warley) (Lab)
Has the Secretary of State not just confirmed that the amount of money in the budget designated for the British armed forces has, in fact, gone down?
Grant Shapps
No, I still have not confirmed that because, before the extra half a billion, if we take the outcome from last year and the amount that was pledged for this year—including supplementaries, to be clear, which is the same basis as last year—it is an increase of 1.8%. However, this is rather beside the point, because since the time we debated this question at the Select Committee on Defence, we have committed to putting in another £75 billion in cash terms from the baseline over the next six years.
Grant Shapps
I think the right hon. Gentleman will want me to complete this section. I would be interested to hear him apply that commitment to his own Front Benchers, because this Conservative £75 billion rise in defence spending is highly significant. It is precisely what our armed forces need to respond to axes of authoritarian states that are trying to reshape the world in their image, and it is the right thing to do.
Bob Seely (Isle of Wight) (Con)
Rather than Labour Members trying to poke holes in this commitment, would it not be better if they committed to doing the same thing?
Grant Shapps
My hon. Friend has pre-empted a passage a little later in my speech, in which I suggest that those right hon. and hon. Members on the Labour Benches who want to see more money go into defence might first persuade their own Front Benchers to follow our lead and ensure that we get more money into it. I am very concerned about the apparent failure of the Labour party to match our funding commitment. Labour Members are being incredibly evasive about funding. In addition to not confirming whether they will do the 2.5% in the next six years—we look forward to hearing whether they confirm that—they are also promising, or perhaps I should say threatening, a review of defence. Our enemies will waste no time in putting the UK in their sights if they think that the next thing that would happen is a multi-year review—a waste of time and money that should instead be spent on our brave servicemen and women. Labour’s apparent refusal to follow our lead and back our fully funded spending plans would decimate our armed forces by cutting up to £75 billion from defence.
Derek Twigg (Halton) (Lab)
Why does the Secretary of State think that Paul Johnson, in an article on Monday 29 April, said:
“What annoyed me was not the commitment…”—
to the 2.5%—
“It was all about the misleading and opaque way in which the additional spending was presented. When it wanted to make it look big, the Government claimed it would boost spending by £75 billion; when it wanted to appear fiscally responsible… It doesn’t take Sherlock Holmes, or even the head of the Institute for Fiscal Studies, to see that there might be something not quite consistent about these claims.”
Grant Shapps
The hon. Gentleman will be interested to know that the way this is presented is entirely the usual way for the Treasury to present increases in spending. If I take him back to the previous cash boost for defence—I think it was £24 billion and it was described, I think, as being over five years—it was presented on exactly the same basis, and I do not remember the hon. Gentleman making the same point then. Regardless of the numbers, surely the point is this: will the Labour party commit to this timeline?
Labour Members said that they wanted to get to 2.5%, and that they would do it when conditions allow. We have now said that we know conditions will allow because of the management of the economy. Will they follow us, or will they send their Back Benchers out to criticise an increase, even though their own Front Benchers will not match it themselves? Perhaps we should not be surprised, given that the Leader of the Opposition, not once but twice backed Jeremy Corbyn—sorry, the right hon. Member for Islington North (Jeremy Corbyn)—to be Prime Minister. The Leader of the Opposition proclaims his support for our nuclear deterrent, yet he has stacked his Front Bench with anti-nuclear campaigners—I counted 11 who voted against Trident—while he goes up to Barrow and claims he is all in favour.
Mr Kevan Jones
The Secretary of State is doing, like last time he came out on this debate, his used-car salesman act. The fact of the matter is clear: the only way we get to £75 billion is if we freeze the defence budget for the next six years. Is he going to do that? Given what he announced last week, will he explain first where the money is coming from, and secondly what is the proportion of resource departmental expenditure limits and capital departmental expenditure limits? There is no detail at all. It is just an empty promise and a political slogan that he is batting around as his usual avuncular self.
Grant Shapps
The way the right hon. Gentleman tries to represent it is simply not true. If it were meaningless, why has his own party not taken the difficult decisions to get to the £75 billion which, to be clear, is the amount additional to what is currently programmed in? He is right that defence budgets may have increased over time, but £75 billion is still the additional figure. If it is so straightforward, why doesn’t he encourage those on the Labour Front Bench to do it? I think I know the answer. He asks how it will be paid for, and it will largely be paid for by cutting the civil service back down to pre-covid levels. Labour Members do not want to cut 72,000 from the workforce of the civil service so that it goes back down to pre-covid levels, and because of that they will not follow us in our commitment. That shows where their choices lie.
Labour Members say they want 2.5% and are keen to see that, but they are not willing to put in place the difficult decisions to reach that. By failing to take those decisions, they will be failing to fund our armed forces if they were to come into office. That would leave our nation more vulnerable, and play directly into the hands of our adversaries, including Putin.
In January, I set out a comprehensive case for increasing defence spending in response to what I described as “a more dangerous world”. After all, Putin is on the march, pursuing wars in the east of Europe while backing greater political influence and assassinations in the west. China has certainly become a lot more assertive in recent years. Russian mercenaries, Islamic extremists and military strongmen have overrun democracies and societies in Africa.
As Iran has nourished and manipulated its proxy militia and groups around the middle east, the Islamic republic itself has for the first time carried out an aerial assault on a democratic near-neighbour, Israel. Its Hamas terrorist allies brought mass murder to Israelis on 7 October, and they have brought pain to the Palestinians—both before and since—with the Hamas approach to running that area. Meanwhile, one of Iran’s other key allies—the Houthis—continues to hold global trade hostage in the Red sea. So, from Moscow to Tehran and from Beijing to Pyongyang, a network of authoritarian states is pressuring allies and our interests. Working together, they are more connected than they have ever been before.
Bob Seely
The Secretary of State is making a really important point. Without sounding too academic, do we actually know what war is nowadays? Clearly, there is conventional war, which we recognise, but what he is talking about is proxy war. Earlier, we were discussing cyber-attacks, China’s and Russia’s role in this sort of hybrid war, and the integration of military and non-military means, which is behind military doctrines in an increasing number of countries. Are we joined up enough to be able to fight these modern conflicts, which are part military and part non-military? Do we actually understand what conflict is in this century?
Grant Shapps
It is true—my hon. Friend will know this as well as or better than me—that in each generation the world relearns what it is to have conflict. We have seen that with Russia, we are seeing it at the moment in the middle east, and we have seen it, as discussed, through various cyber-activities, which are in fact entirely continuous; it is just that most of them do not succeed.
The world has changed, the defence reviews and the refresh looked to try to learn those lessons. One of the things, not least because of Britain’s forward-leaning approach to the war in Ukraine, has been that we have been at the forefront of learning some of those new lessons with drones and other technologies; indeed, we have been speeding up the introduction of new technologies such as laser weapons. It is important that we think about this as a whole rather than just through the traditional eyes of three armed services. We now have to think about space and the domain in cyber, and that is what our strategic command does.
Sir John Redwood (Wokingham) (Con)
The Secretary of State is making a good case. Does he agree that, as this extra money is available, we should ensure that more of it is spent on procuring weapons and military requirements here in the United Kingdom, because we cannot be properly defended unless we can make our own military vehicles, our own steel and our own explosives? We are short of capacity.
Grant Shapps
I absolutely agree with my right hon. Friend. It is incredibly important that we develop—or, rather, further develop—our own domestic defence industrial base. That is one of the reasons why we have spoken about putting that industrial base on a war footing, and it is one of the reasons why—this is not, as has been suggested, some sort of cheap gibe—it is important that the Government, or indeed the Opposition if they want to be the Government, set out the path in order that that investment can take place. That base will not be able to invest unless it knows what is happening on a multi-year basis.
Grant Shapps
I have been quite generous; I will make a little bit of progress.
That is why this Conservative Government will act now. We are going to deliver the greatest strengthening of our national defence since the cold war. Some will argue that the threats we face are perhaps not imminent or existential. They may claim that increased defence spending is not a good use of money, which perhaps should go on other commitments—there are many to discuss—but I argue that we have seen the consequences up and down the country of the more dangerous world that I described in that Lancaster House speech.
In recent years, we have suffered terror attacks. We have also suffered cyber-attacks on business, on Government, as we were just talking about, and on critical national infrastructure. They were mostly not successful, but the amount that it costs to get around them increases all the time none the less. We have suffered intellectual property theft. We have seen Hong Kong protesters dragged into the Chinese consulate in Manchester and beaten. We have seen Iranian journalists threatened and stabbed in London. We have seen former Russian military officers assassinated in hotels in Mayfair and poisoned in suburban homes in Salisbury and, just last month, British citizens charged with setting fire to Ukrainian-linked business units in east London, apparently on the instructions of Russian intelligence.
Jesse Norman (Hereford and South Herefordshire) (Con)
My right hon. Friend has compellingly described the current situation as moving from post-war to pre-war. Does he share my concern that the people of this country, as a whole, are not yet in a place to understand the seriousness of the problem, that there is in some sense, therefore, the beginnings of an issue of consent, and that it is harder than it should be for young people to get excited about joining some of our big contractors and supporting the work we are doing for our armed forces on diverse fronts around the country? If that is true, does he think that there is a specific role for the Ministry of Defence to lead the process of building consent across the UK?
Grant Shapps
My right hon. Friend makes an excellent point. One issue we face is that if you are not Iranian or Russian and living in the UK, you may believe that this does not affect you too much. My entire argument—indeed, the argument I made at Lancaster House—is that this is not just something that impacts on foreign nationals in the distance; we are all, in effect, under attack. For evidence of that, we can see up and down the land the direct impact on every single family as Putin drove into Ukraine. Every single household budget in Britain was under attack. Remember, the winter before last we were paying up to half of the average family’s energy bill. This really does matter back home. It is again why I stress that defence is the cheapest version of looking after ourselves, not the most expensive one. That is why it is so important that, with Putin inflicting that inflation on British households and British business, we wake up to that fact and understand it. I actually think the British people do understand. They do want us to do more. It is popular to make sure that we properly defend these isles and defend our interests overseas. That is why this party has been proud to bring forward this big boost to our national defence.
As was mentioned earlier, this year I have—because this battle is so very important for all of us, not least our Ukrainian friends—provided another half a billion pounds of aid to Ukraine. That will take our total 2024 military package to a record £3 billion, which is the most we have provided in any year. Previously, it was £2.3 billion and £2.3 billion. It brings our total support overall to £12.5 billion, in addition to other aid. In addition, to help Ukraine repel Russia’s mounting attacks, we gave, a couple of weeks ago, the largest tranche of military gifting assistance to date.
It is worth reiterating the size and scale of that, because I fear that with the announcement of the 2.5% and the trajectory—I think all Members believe that Ukraine’s win is absolutely existential and important—the scale of the gifting was perhaps not noticed. It included 4 million rounds of ammunition, 1,600 key munitions, including air defence and precision long-range missiles, all our remaining AS-90 artillery platforms, 60 combat boats, 400 armour-protected and all-terrain vehicles, and hundreds of bombs for Ukraine’s new fleet of F-16 combat aircraft. Just as we initially provided our Ukrainian friends with trained troops, anti-tank missiles, main battle tanks, missiles and so many other firsts, we will now ensure that the aircraft we cannot provide for them—we do not fly F-16s—are properly provided with munitions.
Sir Julian Lewis (New Forest East) (Con)
I know that the Secretary of State’s personal commitment to Ukraine is second to none. Does he agree with me that if Putin is seen to fail in Ukraine, the threat to western Europe, the United Kingdom and NATO countries will recede for a generation? If Putin is seen to gain any sort of victory in Ukraine, the opposite will happen.
Grant Shapps
My right hon. Friend is absolutely correct. That is precisely the point, and that is exactly why it is right to invest in Ukraine. I do not want to make this a political speech—
Grant Shapps
This is a serious issue, and I am surprised by that sort of attitude. I want to ask, because it is a serious point, whether the Opposition are now ready to commit to that extra £500 billion if they were elected, because I have yet to hear that confirmed, and that is an important issue for our Ukrainian friends. I accept that the Ukrainians have the Opposition’s support, but they also need the pledge of money and the certainty that this House will provide it, come what may.
Mr Mark Francois (Rayleigh and Wickford) (Con)
If I heard the Secretary of State correctly, a few minutes ago he said that we have now gifted all our AS-90 howitzers to Ukraine. We are buying 14 new Archers. We are then buying a completely different system based on Boxer, which will take some years to come into service, and our multiple-launch rocket systems are being refurbished. What is he doing to ensure that the British Army is not left without heavy artillery for the next few years, because what he is talking about is a dangerous risk?
Grant Shapps
As my right hon. Friend will realise, it is not a move I have taken easily. There is a balance to be struck between where the weapons can do the most good and the extraordinarily difficult fight that our Ukrainian friends are in right now. I thought, believe and think that that warrants the provision of further AS-90s. The new equipment, as I do not need to tell him, is vastly superior and will be in our hands quickly, not least because of the excellent work of the Minister for Defence Procurement, who has sped up the acquisition of new equipment through his brilliant integrated plan.
I want to be entirely clear with the House: there are choices to make when we do this gifting, and we have to make the choices as to where we think the equipment will be most useful and how quickly we can replenish it. One of the very good things about this significant boost in defence spending, as my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) will appreciate, is that it will enable us to replenish not only equipment but, crucially, munitions, which have been a real concern of his and many others.
Grant Shapps
I will make a little progress, if I may.
We have pledged this half a billion pounds extra, so we are at £3 billion a year. The crucial point—it has perhaps been lost, or perhaps I have not said it from this Dispatch Box—is that over the course of the next Parliament, this party in government would provide £15 billion of guaranteed aid to Ukraine. When I speak to President Zelensky or my opposite number, Minister Umerov, they make it clear that the certainty of that funding is the most important thing we can do right now. I implore and invite other parties to suggest that they would follow that pledge, in order to provide that certainty to the Ukrainians right now. It matters now that the Ukrainians have certainty that that aid will be there, come what may and regardless of electoral cycles elsewhere, even though we will still be here.
Jim Shannon (Strangford) (DUP)
I very much welcome the Secretary of State’s commitment to defence and the extra money for the budget. I know that he is very committed to the defence sector in Northern Ireland, and we want to encourage that. The Northern Ireland Affairs Committee is doing an inquiry on defence procurement for Northern Ireland and is suggesting that there should be a regional hub, because that will encourage more companies from Northern Ireland to be involved and be part of that spend for defence over the next couple of years. First, is the Minister aware of what the Northern Ireland Affairs Committee is doing on procurement? Secondly, other firms such as Nitronica, an electronics manufacturing firm in Ballynahinch, wish to be part of defence procurement but have not had the opportunity. It is important that we all play our part. I think the Secretary of State will agree with me, but I am curious to hear whether there is a plan.
Grant Shapps
I certainly do agree: all parts of the United Kingdom have a very important role to play, especially Northern Ireland, where missile production, ships and electronics are particular skills. It is important for people there to have a level of certainty that we intend to invest and will carry on investing. Today we can outline exactly how much we would spend each year in the future. By doing so, it is worth them investing. It is cheaper for them to invest. The cost of capital to build and maintain factories falls when we provide that certainty. I therefore hope that the Labour party will match our long-term pledge to Ukraine and to defence spending, because there is no way that warm words about defence spending make a difference to the frontline; the difficult choices have to be made. We have made our choices and we will reduce the size of the civil service back to pre-covid levels. Labour can make its own choices, but I encourage it to join us in the defence boost pledge.
There is no more important element of defence than our nuclear deterrent. Again, it is good to hear that both sides of the House now seem to back the nuclear deterrent, but that cannot be done without backing the money to support it.
Sir Julian Lewis
It is true that both sides of the House strongly back the nuclear deterrent at the moment, if my right hon. Friend is talking about the Labour Opposition. However, with recent talk of the prospect of a hung Parliament, one could find oneself in the same situation as the Cameron Government in 2010, when the right hon. Member for Warley (John Spellar) and I were begging for a vote to be held to renew the nuclear deterrent, but because of the coalition deal with the Liberal Democrats, that vote was postponed, at great expense, for four years until 2016. We would like to hear assurances from both Front Benches that no such situation will ever be allowed to arise again.
Grant Shapps
I am pleased to reassure my right hon. Friend from this Front Bench that no such delay would be countenanced. Just in the last few weeks we have issued the defence nuclear enterprise Command Paper—[Interruption.] I thought the Opposition Front Bench knew that there was a coalition Government, but perhaps they missed it. Perhaps they also missed the point that my right hon. Friend was making.
Richard Foord (Tiverton and Honiton) (LD)
I am grateful to the Secretary of State for giving way, and I can offer him the assurance that the Liberal Democrats embrace the continuous at-sea deterrent with four submarines. What is more, the strategic environment in which we were operating in 2010 was very different from that which we see today: the Liberal Democrats made the right call then, and we have made the right call now.
Grant Shapps
You heard it here first, Madam Deputy Speaker. I warmly welcome that commitment, which was not available under the then coalition Government. It is an important moment, and I welcome that commitment from the hon. Gentleman, as I welcome it from Labour.
I gently remind the House that 11 Opposition Front Benchers have voted against the deterrent in their time here, including three members of the current shadow Cabinet, including the shadow Foreign Secretary, the shadow Levelling Up, Housing and Communities Secretary, and the shadow Deputy Prime Minister. The House is right to ask, and the country will want to know, whether that commitment is as firm as we now hear it is from the Liberal Democrats. It will also want to know, even if the commitment is said to be firm, whether Labour is prepared to fund it. Again, it comes back to the 2.5%.
John Spellar
Can we be clear that, as was kindly referenced by the right hon. Member for New Forest East (Sir Julian Lewis), that situation was the result of a failure of political judgment and will by David Cameron? He could have said to the Liberal Democrats, “This is a matter of strategic national interest. If you don’t like it, you can give up your jobs and walk out of the Government.” They would have bottled it. The fact was that we lost six years and a huge amount of money, and we are putting CASD at real risk with enormously elongated tours of duty for our tremendous submariners.
Grant Shapps
The right hon. Gentleman wants to relitigate the past, but I think we all agree that we cannot do anything about it. I want to talk about the future, and the future is that those on his own side have yet to commit to the 2.5% that is required to ensure that our nuclear deterrent can deliver on time. In March the Prime Minister and I published the defence nuclear enterprise Command Paper, setting out our long-held and unshakeable commitment to our own independent nuclear deterrent.
Mr Francois
I appreciate my right hon. Friend’s desire to look forward rather than back but, just for the record, does he remember, as I do, that at one point the Liberal Democrat policy on Trident was to maintain the submarines but to send them to sea without any missiles?
Grant Shapps
I will be as diplomatic as possible: the Liberal Democrats asked us to investigate a range of options, and I am very pleased that the one we ended up with was the four-submarine continuous at-sea deterrent.
We are investing £41 billion in our next generation of the Dreadnought fleet, and investing in our replacement UK sovereign nuclear warhead as well.
Derek Twigg
The Secretary of State mentioned the Command Paper. Page 89, in paragraph 10, refers to
“protecting ourselves…against attack from the skies”.
We know from what has happened in Ukraine, and more recently in Israel, how important our air defence missile system is. The Command Paper continues:
“To counter these threats, we will step up our efforts to deliver an Integrated Air and Missile Defence approach.”
Can the Secretary of State tell us where we are with that?
Grant Shapps
I should point out that there are a wide number of differences for us, because within Nato—this relates to article 5 of the North Atlantic treaty—we are in a different region from, for example, Israel, which was recently attacked. We have a number of layered approaches to defending our skies, including the quick reaction alert. However, the hon. Gentleman will be interested to hear that we are working with our European friends and allies on a European sky shield to do something along the lines of what he has described. It should be understood, however, that there are considerations regardless of which direction we take, because, again, the money can only be spent once, and we would have to consider what else we were or were not going to achieve in defence. So we use a layered approach, but we are actively working on exactly what the Command Paper describes.
Grant Shapps
I am a little concerned about not giving others an opportunity to contribute, but I will allow the right hon. Gentleman one last intervention.
John Spellar
Was the Secretary of State not a member of the Government, and indeed chairman of the Conservative party, during the period we are discussing when the Government did not renew Trident?
Grant Shapps
I think the right hon. Gentleman will now understand why I was so pleased to trounce the Liberal Democrats when it came to that election—to squeeze them out of government and ensure that we could get on with Trident as we always wanted to. I encourage his party to join us in that commitment, backed up with money—not just photo-opportunities in Barrow, but money to deliver the nuclear deterrent.
I now want to make some progress. I want to talk about Putin’s war, and the way in which it has underlined the vital role of conventional forces. From the Red sea to the skies over Iraq, our armed forces are already doing incredible work globally in protecting and advancing our interests every day. In the ongoing Exercise Steadfast Defender, they are currently making up 20% of this year’s NATO exercise, itself the largest since the cold war. I have been to visit some of them in Poland.
We are investing £8.6 billion in Army equipment during this decade to make our ground forces more integrated, agile and lethal. That includes the new Boxer and the long-awaited Ajax armoured fighting vehicles, as well as the new Challenger 3 tanks, of which I saw the second prototype come off the production line in Telford just last month—the first British-made tank for 22 years.
Our United Kingdom is at its strongest when we stand shoulder to shoulder with our allies, and therefore our commitment to NATO will only ever increase. That is why it is so important that we have been prepared to set out how to get to 2.5%. At the 2014 NATO summit at Newport in Wales, we set a target of 2% to be reached by this year; we are now extending that to 2.5%, and we invite other countries to join us.
NATO has become stronger because of Putin’s actions in Ukraine. It has added members: two new members have joined us, and we therefore outgun Putin on every single metric. We have three times as many submarines and fighter jets, four times as many tanks, helicopters and artillery pieces, four and a half times as many warships, six times as many armed vehicles, eight times as many transport carriers and 16 times as many aircraft carriers. But it is important that NATO works together and sticks together. It is also important that we send a signal to NATO that the second biggest spender in absolute terms intends to increase that expenditure—that has been widely welcomed by other NATO members that I have spoken to in the past couple of weeks.
The importance of that iron-clad alliance is the third lesson of Putin’s war. Since 2022, we have worked hard with our NATO partners to enlarge the alliance and bolster its eastern flank. We have also worked hard with our closest partners on a range of top-end procurement programmes, from sixth-generation combat jets with Italy and Japan to cutting-edge nuclear-powered submarines with Australia and the United States.
The fourth lesson of Putin’s war is that the battle in Ukraine has needed ever more innovation—new tech, new drones. As we ramp up our defence spending to 2.5%, we will put high-tech innovation right at the heart of our plans. I recently visited the Defence Science and Technology Laboratory, and we agreed to ringfence 5% of the defence budget for research and development over the next year, and to improve our strategic defence research.
Madam Deputy Speaker (Dame Rosie Winterton)
Before the Secretary of State comes in, I am slightly conscious that 13 Back Benchers have indicated that they wish to make speeches, so there will be an impact on the length of those speeches if we are not careful.
Grant Shapps
I will be less generous with interventions and will rattle through the remaining important content for our military services.
We are building on the recent defence drone strategy and our £4.6 billion investment in uncrewed technologies over the next decade. As we discussed earlier, AI and other tech advances are transforming the way warfare is fought, and our pan-defence procurement reforms have enabled a speeding up of our ability to deliver new technology. I have mentioned DragonFire several times at the Dispatch Box, and it will be delivered five years early.
Fifthly and finally, Putin’s war in Ukraine has underlined the need for all NATO allies to rebuild their stockpiles and grow their defence industrial base. To keep our defence production lines running, we have reformed the procurement process to prioritise exportability from day one. That is now an accredited part of UK production when we make procurement decisions. Our £75 billion boost for defence includes an additional £10 billion to produce even larger stockpiles of munitions over the next decade. That gives certainty to industry and boosts our regions.
Defence supports hundreds of thousands of jobs across the UK, and the boost for defence will provide even more opportunities—opportunities for apprentices and for seasoned engineers. Those jobs would be at risk if the path to 2.5% were not followed, so it is very important that we give that commitment to our defence personnel. We undertake to do that, but we will go further: we will also invest £4 billion in military accommodation, because we recognise that retention, as well as recruitment, is so important. That £4 billion would not exist without the increase to 2.5%. We are also ensuring that there are wraparound childcare services for service families and the service pupil premium.
I thank—as I know the whole House will—the committed, professional and courageous members of our armed forces for everything they do for us in more difficult times. They keep us safe. We are backing them with more money and, in a more dangerous world, I think that is the right thing to do. As I go to Washington with the Prime Minister for the NATO summit in July, we will be saying to other NATO countries, “Follow our example. Follow us because it is the right thing to do and because it is cheaper and more effective than waiting for wars and conflicts to break out.” I encourage other Members of this House to follow us.
Defence Spending
Grant Shapps Excerpts(7 months ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
The Secretary of State for Defence (Grant Shapps)
With permission, Mr Speaker, I shall make a statement updating the House on the Government’s commitment to increase defence spending to 2.5% this decade.
In my speech at Lancaster House in January, I warned that we were entering a much more dangerous period in the world and I made the case for a national conversation about defence spending. Since then, Putin has stepped up his attacks on Ukraine, China is increasingly assertive, and tensions have escalated in the middle east culminating in Iran’s unprecedented attack on Israel 10 days ago conducted in parallel with the proxies Iran has nourished around Israel’s border in the middle east, including of course the Houthis who continue to hold global trade hostage in the Red sea.
Since January, the world has become even more dangerous, not less, and we continue to ask more of our courageous and professional armed forces. Our sailors have served under constant risk of attack in the Red sea, helping to protect international shipping and our own cost of living. We have bolstered our Royal Air Force presence in the middle east, enabling Typhoon crews to intercept Iranian drones and missiles recently fired towards Israel. And around 20,000 of our personnel from all three of our services, with a huge inventory of naval, air, and land assets, have been active around Europe as part of the largest NATO training exercise since the cold war. In short, we increasingly need our armed forces, and we increasingly are asking more of them.
So yesterday the Prime Minister committed to hit spending 2.5% of GDP for defence by 2030. It means we will invest an additional £75 billion into defence over the next six years, and that will be funded in full without any increases in either borrowing or debt. This represents the biggest strengthening of our national defence in a generation and, as the NATO Secretary-General said yesterday, it will ensure the UK remains by far the largest European defence spender in NATO, and it means we are the second biggest NATO spender overall.
It will provide a very significant boost for UK defence science, innovation and manufacturing. It will make our defence industries more resilient and bigger. And it will mean we are able to restock some of the global supplies required in order to continue to ensure that we are both able to provide our own armed forces and those in Ukraine and be a competitive export sector. We also recognise the important role defence plays in our national resilience by developing a new plan that for the first time brings together the civil and military planning for how we would respond to the most severe risks that our country faces.
Our additional £75 billion on defence is also enabling us to ramp up that support for Ukraine. Members on both sides of the House will share the Government’s concern about the warnings President Zelensky has been issuing, and his most senior generals have confirmed that their the ability to match Russian force is increasingly difficult. So, as NATO partners, we are looking at each other to see that leadership.
The UK Government have stepped forward: we are providing the alliance with the decisive leadership demanded in this knife-edge moment of this existential war. This week we have committed an extra £500 million of military aid to Ukraine for this year, bringing our total package to £3 billion. In fact, our total since Putin’s full-scale invasion is now more than £12.5 billion, £7.5 billion of which is in military aid.
In addition, we have provided NATO partners with leadership by delving even deeper into our own military inventory, to give Ukraine our largest package of equipment and support to date. The support announced this week includes: millions of rounds of ammunition; 1,600 key munitions, including air defence and precision long-range missiles; over 400 armoured, protected and all-terrain vehicles; support with logistics to support and bolster the frontlines; support to get the F-16 pilots who have trained in the UK into the air as soon as possible; and a further 60 boats to help Ukraine strengthen its remarkable grip over the Black sea, including offshore raiding craft and dive boats.
Our £75 billion defence investment will help Ukraine get back on to the front foot. Coupled with the reforms that we have introduced to make procurement faster and more effective, it will put our defence industrial base on a war footing. It will fire up the UK’s defence industry with an additional £10 billion over the next decade for munitions production. That will bring our total spend on munitions to about £25 billion over the same period.
We are delivering for those who serve to guarantee our freedoms as well, with over £4 billion to be invested in upgrading accommodation to build new living quarters for our personnel over the next decade. We are also working seamlessly with key allies to strengthen our collective deterrence and develop new, innovative capabilities. Just last month, I was in Australia with our Australian and US partners to advance our AUKUS programme, which will develop and deliver a range of cutting-edge kit in addition to the next generation of nuclear-powered submarines. At the end of last year, I was in Japan to advance our global combat air programme, which is the development of the sixth-generation fighter jet with Italy and Japan.
Just last week I was in Telford to see the first fully British tank for 22 years coming off the production line. That is just one strand of our Future Soldier programme to make our Army more integrated and much more lethal. Of course, defence already supports hundreds of thousands of jobs, with real quality to them, in the UK, including over 200,000 directly in the industry. Our additional £75 billion will open up many more opportunities in regions up and down the country.
This is a turning point in UK defence. We must spend more because defence of the realm is the first duty of every Government. We on the Government side of the House recognise that fact. But while I want to see peace and international order being restored, I am also absolutely convinced that it is hopeful thinking—even complacency—to imagine that we can do that without ensuring that we are better protected. The best way of keeping a country safe and protecting our way of life is deterrence: being prepared; being clear-eyed about the threats we face; being clear about our capabilities; backing UK defence science, technology and innovation; carrying not just a big stick, but the most advanced and capable stick that we can possibly develop, and yes, using our military muscle alongside our allies.
Our investment in our continuous at-sea nuclear deterrent makes would-be adversaries think twice. We on the Government side of the House have not come to the conclusion that our nation’s nuclear deterrent is there because an election is approaching; we have always believed in our nuclear deterrent.
This is an additional £75 billion boost for our forces. In the build-up to the NATO summit in Washington, I will do all I can to get alliance members to follow our lead and bolster their armed forces, strengthen their industrial base, invest in innovation, maximise their military deterrence and, most importantly of all, maximise their support for Ukraine. In a more dangerous world, where we face an axis of authoritarian states, 2.5% must become the new baseline for the entire alliance. If we are to deter, lead and defend, that is what is required of us. I commend this statement to the House.
John Healey (Wentworth and Dearne) (Lab)
I thank the Secretary of State for the advance copy of his statement. There is much to welcome in it and more widely today, with the US Congress finally passing the Bill for more military aid to Ukraine and the Prime Minister finally making a multi-year commitment to UK military aid beyond this year.
We face a much more dangerous world. British forces are in action, defending international shipping in the Red sea, reinforcing NATO allies on the Russian border and protecting us all 24/7. They are respected worldwide for their total professionalism. They require our support from all sides of this House. We welcome the new commitments on funding for Ukraine and to build up stockpiles, to boost defence exports, to prioritise domestic defence production and to set up new strategic headquarters in the MOD—all plans I have argued for in this post.
The Secretary of State is right to say that the first duty of any Government is to defend the country and keep its citizens safe. Labour will always do what is required and spend what is required on defence. The last time the UK did spent 2.5% of GDP on defence was in 2010, under Labour—never matched in any one of the 14 Tory years since. Two weeks ago, the Labour leader said that we want a fully funded plan for 2.5% of GDP on defence.
We share the same ambition as the Government because we must do more to deal with the growing threats. We want it to be fully costed and fully funded, and set out in the Government’s baseline budgets. This 2030 target is not; it is in a press release. Why was the 2030 plan not in last month’s Budget, or any of the other five Budgets and autumn statements since the Government first promised to spend 2.5% by 2030, two years ago? None hit 2.5%; none reversed the real cuts in day-to-day defence spending; none matched Labour’s record in Government. If this 2030 plan had been in a Budget, it would have been independently checked, openly costed and fully funded. Where is the additional money coming from? How much is coming from which other research and development budgets? How much is coming from cutting how many civil servants, and in which Departments?
The Government have tried this trick before, in the 2015 defence review. Ministers pledged to cut 30% of MOD civil servants in order to make their defence spending plans add up. Civil servant numbers did not go down—instead of going down to 41,000, they went up to 63,000. The Secretary of State mentioned an additional £75 billion five times in his statement. Over the next six years, the Government’s official spending plans are based on 0.5% real annual growth in core defence spending. Why has he invented his own zero-growth baseline to produce this fake figure, claiming an extra £75 billion for defence? The public will judge Ministers by what they do, not what they say. Over 14 years, they have hollowed out our armed forces; they have cut the Army to its smallest size since Napoleon; they have missed their own recruitment targets each and every year; they have allowed morale to fall to record lows; and they have wasted at least £15 billion on mismanaging defence procurement.
Everyone recognises that defence spending must rise to deal with increasing threats. The Opposition have no access to classified threat assessments or military advice, so if we are elected to government we will conduct a strategic defence review within our first year to get to grips with the threats we face, the capabilities we need, the state of the armed forces and the resources available when we get to open the books. That is how Labour will manage the requirements for strong national security and the responsibility for sound public finances.
The Defence Secretary clearly likes Labour’s plans for defence, because so much of them are now Government policy. But there is still no Tory plan to reinforce homeland protections with a new strategic review; to fulfil NATO obligations in full, with a NATO test on our major programmes; to renew the nation’s contract with those who serve with an independent forces commissioner; and to make allies our strategic strength with a new EU, French or German defence agreement. With threats increasing and tensions growing, we must make Britain better defended. With Labour, Britain will be better defended.
Grant Shapps
Let me start on the areas that I agree with. The right hon. Gentleman mentioned how much we welcome the US Congress putting $60 billion into the defence of Ukraine. We warmly welcome that. As Churchill was reputed to have said, America usually gets on and does the right thing when it has exhausted all other alternatives. It took a long time, but we have got to the point where that money will go to Ukraine. That is very welcome across the House.
The right hon. Gentleman says that he welcomes today’s announcement, but then spends all his time explaining—or rather, avoiding explaining—why Labour is not backing 2.5%, which has a schedule, a timescale and figures that have been published and are in the document produced yesterday and laid in the Library. He says, “Judge us by our action, not our words.” We will, because 11 Members of the Opposition Front-Bench team voted against Trident. It is no good for him and the Leader of the Opposition to go up to Barrow and to claim that they are all in favour of the nuclear defence, because they stood on a platform with a leader who wanted to scrap Trident, pull us out of NATO, and turn the army into a peace corps.
The Opposition tell us, “Judge us on our actions.” Where is the shadow Foreign Secretary, who voted against Trident? Where is the shadow Deputy Prime Minister and the shadow Communities Secretary, who voted against Trident? Neither is there on the Front Bench. Presumably neither is in full agreement with the right hon. Gentleman. When it comes to the defence of the realm and defending this country, the Conservative party has always believed in our nuclear deterrent. We are upgrading it and making sure it is fit for purpose. Neither supports the 2.5%, as the House will have noted.
It is fine for the right hon. Gentleman to come to the Dispatch Box and talk about yet another review. If the problem were having defence reviews, there would be no issues at all. The last thing this country and armed forces require is yet another review—delay, disruption and obfuscation.
Sir Jeremy Quin (Horsham) (Con)
My right hon. Friend is right to say that we are continually asking more of our armed forces, as the Defence Committee’s recent report made clear. In that context, I greatly welcome the announcement and the increased investment. We want it to unleash a triple whammy in which our industrial partners also seize the opportunity to invest heavily in capital equipment and R&D, and in which our NATO allies see this as a new benchmark to which those who do not already can aspire and meet. What are we doing to ensure that we not only make the investment but achieve that triple whammy?
Grant Shapps
My right hon. Friend the Chair of the Defence Committee is absolutely right on the investment point. I spoke to my opposite number, US Defence Secretary Lloyd Austin, yesterday evening about how it will help to galvanise NATO in particular to make greater investment. When we go to the NATO summit in Washington for the 75th anniversary, the new baseline will be 2.5%, rather than the 2% one set by the UK in 2014, which 18 or so of NATO’s 32 members have now reached. That investment sends a very important signal to the whole defence industrial base. That is why it is critical to set out the plan and stick to it, and agree to reach 2.5% by 2030.
Martin Docherty-Hughes (West Dunbartonshire) (SNP)
The Secretary of State clearly has a herculean task to find £75 billion, so let us seek clarity on where it may be found. I welcome the investment if it is in capability. I agree with the shadow Secretary of State on why it was not in the Budget. I think we all know why: it does not stand up to scrutiny. Let me also welcome the Secretary of State’s investment in Ukraine, on the back of the US commitment. I have to say to our US colleagues that it was long overdue. Let me ask some specific questions. It is the duty of Opposition to challenge Government, and we will have our differences.
With no increase in borrowing or debt, the implication is that there will be deeper cuts to other public services. If the Government have assumed a baseline with spend frozen in cash terms as of GDP, as I think was alluded to by the shadow Defence Secretary, it comes nowhere near £75 billion. As I come from a services family, I wonder if the Secretary of State will commit to a direct increase in spend on accommodation, training and recruitment as part of this proposal, given that we are at a near Napoleonic decline on the frontline and have pushed members of the armed forces into food banks and near penury?
The Secretary of State and I will, of course, disagree on the nuclear deterrent, but I wonder if he will answer one specific point while he retains it. The nuclear enterprise has been exposed as unaffordable in the latest report by the National Audit Office. What assurances can he give the House that the nuclear deterrent will not continue to cannibalise the Ministry of Defence budget and, specifically, the £75 billion he has proposed today?
Grant Shapps
The first thing I should point out is that page 20 in the annex of the document before the House describes the uplift in the defence budget. We have headlined it as £75 billion. In fact, when we go through and add up the individual amounts year on year, it reaches £77 billion of expenditure. Members can see there exactly how we will get to it.
Secondly, it is fully funded. I know the Labour party does not like the idea, but we will remove 72,000 civil servants from the system, not because we do not think they are good people—fortunately, with low unemployment we know they will be gainfully employed elsewhere—but because we want to get back to the size of the civil service we had before covid, before it expanded greatly. We see no reason to continue to run a civil service with 70,000 additional people each year, when that money could go into the defence of the realm.
The hon. Gentleman asks about our commitment to our armed forces personnel, their families and their accommodation. He may have missed it in my statement, but I mentioned £4 billion that we will now invest in their accommodation and conditions over this period, thanks to this big uplift. He will be aware that last year there were a lot of problems with leaks and boilers not being fixed for considerable periods of time. There have not been those stories this year, because we got on top of that with £400 million and by making sure that contractors are doing their job.
As the hon. Gentleman rightly says, we have our differences on things like nuclear deterrence, but if there is one thing that benefits Scotland in particular, I would suggest it is what goes on at Faslane, with the extraordinary high-quality jobs it produces and the proud part it plays in this nation’s defence.
Sir Julian Lewis (New Forest East) (Con)
The main reason why this welcome uplift has come when it has is Russia’s aggression against Ukraine. Does the Secretary of State agree that if Russia and Putin are seen to fail in Ukraine, the threat to NATO will be put back for at least a generation? Conversely, if they succeed, the threat to NATO will intensify. Will he therefore do everything he can to persuade our allies, especially certain parts of the United States’ new political establishment, that the success of Ukraine is essential for the peace of Europe and, indeed, the peace of the world?
Grant Shapps
My right hon. Friend is absolutely right. Although this is £75 billion and although it takes our budget to 2.5% of GDP, that is a fraction—a fraction—of what it would cost if Putin were successful in Ukraine. There is no chance he would stop there—none. Other autocrats elsewhere would look at that and exploit the idea that all they have to do is outwait the west and we will get bored of it—through some form of attention deficit—and give up defending the things we said we would never stop defending. That, in the end, would cost us all a huge amount more.
Mr Kevan Jones (North Durham) (Lab)
May I first of all congratulate the Secretary of State on his stellar used-car salesman act, which we have become used to? On 26 March, he appeared, along with officials, before the Defence Committee. His strategic finance director confirmed that next year, when we take Ukraine funding out of the budget, the defence budget falls. Can he tell the House how he reconciles that fact, which was confirmed by his own officials, with his claim today and the Prime Minister’s yesterday to be putting the country on a war footing?
Grant Shapps
I am really sorry that the right hon. Gentleman cheapens what is a very important discussion about the defence of the realm with such a ridiculous remark. We should all come here in the right spirit to discuss these important issues, given the subject matter. He asks about Ukraine. Ukraine is a part of what our armed forces and this country are having to deal with. We do not ask America to strip out its help to Ukraine, in the same way that we did not ask it to strip out its help to Afghanistan or Iraq, because it is part of the core defence budget. Yesterday—I did not mention this in my statement, and perhaps on this basis the right hon. Gentleman may be forgiven—we also said that our enhanced amount of money for Ukraine is not now just for this year, but we are going to carry on doing it every single year into the future. So, yes, it is part of our core expense.
Mr Mark Francois (Rayleigh and Wickford) (Con)
I commend the Secretary of State for obtaining this massive £75 billion increase in defence, which theoretically would allow us to buy 20 new Queen Elizabeth class aircraft carriers. At the risk of upsetting our excellent First Sea Lord, we are not likely to do that, but we are putting our defence industry on a war footing. Can we do the concomitant thing and create a war reserve of equipment with older Typhoons, older warships and older armoured vehicles, so that if we had to fight at short notice we would have enough equipment to do it and so that we can tell our adversaries that when we say, “Si vis pacem, para bellum,” we actually mean it?
Grant Shapps
I thank my right hon. Friend not just for his words, but for his constant campaigning on this subject. Those of us who have been subject to him in a Select Committee know that he knows his facts, knows what he is talking about and has done as much as anybody to ensure that this uplift is happening. I can confirm for the House that we will not be using the £75 billion for 20 new aircraft carriers.
My right hon. Friend makes an interesting point about what we could do with older equipment. I have to say to him that right now, I am much more minded to send that equipment to Ukraine. That is why, yesterday, I pulled together the biggest donation package to date, in what is now the third year of the war, of equipment to Ukraine. For the time being, I think we will be sending it in an easterly direction.
Derek Twigg (Halton) (Lab)
Can I ask the Secretary of State what he believes a war footing is?
Grant Shapps
Very simply, Ukraine has taught the world a great deal about this. When it comes to, for instance, producing sufficient munitions to restock the Ukrainians’ supply, it is very difficult—in fact, impossible—to do that instantaneously. When there is global competition for 155s or other missiles, we want to ensure that our own industrial defence estate is able to produce such items by telling those in the industry that they are on a war footing. By putting in £75 billion more and, critically, naming the date by which we will get there, we will put them on that war footing.
Richard Drax (South Dorset) (Con)
I commend my right hon. Friend for his stalwart stubbornness in securing this important increase in defence spending. He and I both know that much more money is needed, but this is a step in the right direction. He is off shortly to meet NATO members, and I fear that he will have a great deal of work to do. For example, only two NATO members are prepared to open fire on the Houthis in the strait of Hormuz, one of the major trade routes for NATO and the west. Does my right hon. Friend feel that there will be a lot of work for him to do when he goes to meet those NATO members and asks them to step up and spend 2.5% on defence, as they should do and as we are going to do?
Grant Shapps
I thank my hon. and gallant Friend for his comments. He is right to point out the need to be prepared to use the abilities that we have. Ours is one of the only countries with both the global reach and the desire and preparedness to use those abilities, which is why we have ended up defending ships in the Red sea from the Houthis. I can report that a specific incident along those lines has taken place today, with our armed forces in action, and we can be very proud of everything they do for us.
Richard Foord (Tiverton and Honiton) (LD)
On behalf of the Liberal Democrats, I welcome the right hon. Gentleman’s statement about increased defence spending, although it relates to a time six years hence rather than being specific about funding in the intervening years. Eighteen of the 32 members of NATO are still not spending even 2% of GDP on defence, including France, Spain and Italy. Encouraging them to spend more is not so much about fairness as about persuading sceptics in the United States that North America should remain engaged in Europe. Leverage at the NATO summit in July will come too late. What additional commitments did the Secretary of State and other Ministers obtain from our allies before announcing the 2030 pledge?
Grant Shapps
First, I assure the hon. Gentleman that it starts this year—the half a billion pounds is in this year’s budget. We have opted to give that money directly to Ukraine, in addition to the money that we are already gifting it, bringing the total to £3 billion.
Secondly, let me gently say that I do not think I have ever heard Liberal Democrats argue for more defence spending, but I strongly welcome the hon. Gentleman to the cause. I agree with him entirely that 2%—which we ourselves set back in 2014—is no longer the baseline that we should be working to, but I gently point out to him that the reason it has taken some time to replace Trident, and in particular the submarines, is that there was a short period under the coalition when we could not get our Liberal Democrat partners to agree to get on with the job.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
May I, in passing, pay tribute to the late Frank Field? He voted for the renewal of Trident, unlike many on the Labour Front Bench, and he would have understood that deepening our defence capability in the conventional forces is a vital part of the deterrence that NATO provides for the security of Europe. I commend my right hon. Friend and the Government for leading the way on this, and setting an example through leadership.
Grant Shapps
I thank my hon. Friend and add my condolences to those already conveyed by others. Frank Field was a great statesman with really innovative ideas about welfare reform, which it took this Government to enact, and he is a great loss to us all.
I entirely agree with my hon. Friend about our leadership in NATO in getting to 2.5%. I was talking about that to the Secretary-General of NATO yesterday. We must ensure that 2.5% is the new level at which people operate. If they did—if everyone joined us at 2.5%—there would be £135 billion per annum more in the collective NATO budget, which would make a huge difference.
Dame Nia Griffith (Llanelli) (Lab)
Labour is absolutely committed to reaching 2.5%, and we welcome the additional £500 million for Ukraine, but time is of the essence. What is the Secretary of State doing to speed up the delivery of much-needed military supplies to the frontline in Ukraine?
Grant Shapps
I warmly welcome the hon. Lady’s comments, and I hope very much that those on her Front Bench, who have not attached themselves to the timeline that she urges, have listened closely to what she has said. As for the delivery of items to the frontline, we will be very fast; we will deliver in a matter of days or weeks quite a lot of the items outlined in the very extensive package announced yesterday, although they come in a number of different forms and some, by their physical nature, will take longer to deliver than others.
David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)
I welcome the announcement, and indeed the decision that has finally been made in the United States. Can my right hon. Friend confirm that investment will go into not just technology, but the logistic, the warehousing and the background facilities here in the UK—such as those at MOD Longtown, a very important employer for my constituency—to ensure that our frontline forces are supplied with the best kit that they could possibly have?
Grant Shapps
My right hon. Friend can certainly have that reassurance. We know that such support is extraordinarily important to the running of truly lethal and effective armed forces.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
In every year since 2010, the Government—along with their Liberal Democrat partners—have missed recruitment targets, and The Times has warned that Army numbers could fall to 70,000 full-time equivalents. What is the Defence Secretary doing to ensure that those who wish to serve and defend our country are not put off by the broken recruitment system?
Grant Shapps
The hon. Lady will be pleased to hear that in January and February we had an eight-year high in the number of applications for the Army, which was reflected in the other services. I agree that we need to be much more effective in getting applications all the way through the system. It takes too long, and the procedures are too disparate. People are having to turn up for an initial interview, go away and then come back for a medical. Why not do all those things at once?
However, other measures are really helping. There has been a pay increase of nearly 10% for the less well-paid members of the armed forces in the last year, which has helped with recruitment, and people seeing our armed forces involved in so much action has also helped. The Minister for Defence People and Families is spending a great deal of time ensuring that the many recommendations—67, I think—in the Haythornthwaite review are implemented as quickly as possible.
Mr Tobias Ellwood (Bournemouth East) (Con)
I join the many voices that have called for some time for an increase in defence spending, and we welcome this announcement. I suspect that, privately, the Defence Secretary was hoping that this day would come as well, and I congratulate him on the work that he has done behind the scenes to ensure that this funding is secured.
State-on-state conflict has returned in Europe, and the world is more dangerous, more contested and more polarised. Will the Defence Secretary therefore expand a little on the consequences to UK security and to the UK economy if Russia wins? Before rushing in to spend these increased funds, will he recognise the need to consider the full spectrum of threats and warfare that we face, so that money is wisely spent?
Grant Shapps
My right hon. and gallant Friend has been a very important part of ensuring that we got to where we are today, but I had not realised that I had been keeping my own desire to reach this point quite so secret. He is correct in saying that the implications of Russia’s winning this war would be horrendous. The cost of what this country had to put up with because of covid, for example, would seem small in comparison with the cost of what could happen if other autocratic states decided to take a chunk of other people’s land; that could have a direct impact on our economy.
This is not, in my view, money that we are spending; it is money that we are investing in our security, to ensure that Russia and other despotic leaders like Putin never think that they can try it on with us. We will be investing it extremely wisely in many programmes with which my right hon. Friend and other Members on both sides of the House are familiar, as well as in innovative new areas such as the DragonFire.
Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)
May I thank the Secretary of State for the urgent support for Ukraine, which is much needed just now? However, the Institute for Fiscal Studies pointed out that in the Chancellor’s Budget, there was a conspiracy of silence between the Government and the Labour party on following the fiscal rules when it came to saying where £20 billion-worth of cuts to public services would come from. Today’s announcement adds up to another £9 billion of cuts to public services. Can he explain where those cuts will be made?
Grant Shapps
We have already laid out the fact that this plan is fully costed and funded. As I have mentioned to the House, we have said that we will reduce the size of the civil service by 72,000. That is not a one-off cut; it is money that is not being paid each year, and will help to fund defence. There are also some other things that the Chancellor will no doubt wish to get into. I do not know whether the hon. Gentleman has taken a look at page 20 and the annexe, but he will see that this is all set out.
Sir Alec Shelbrooke (Elmet and Rothwell) (Con)
I absolutely welcome this very important investment in defence. As my right hon. Friend says, the world is a changed place, and I am sure that he would agree that defence is indeed a public service. On the extra funding and the projects that he has announced, may I ask him to make sure that he says to the Treasury that the programmes should be fully funded? This should not just be capital investment. The Treasury has a habit of saying, “The capital investment is fine, but let’s not worry about revenue.” The projects will need revenue, so will he make sure to have those conversations with the Treasury?
Grant Shapps
My right hon. Friend makes a very clear point, based on his experience of the Department. We have to make sure not just that we fund the capital, but that we have the resource to run the equipment. He raises a very important matter, and this budget enables us to ensure that this is done properly.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
I, too, welcome the increase to 2.5%. The world has definitely become a more dangerous place over the last 14 years. I can only suppose that the announcement was not made in last month’s Budget because it would have come under scrutiny from the Office for Budget Responsibility, but could the Defence Secretary say exactly what proportion of the 2.5% will be spent on cyber-security and armed services personnel?
Grant Shapps
I should point out to the House that we have always said that we would do this when conditions allowed. Inflation fell to 3.2% last week—down from over 11%. Ten days ago, we saw Iran fire hundreds of missiles at a democratic state, and we were partly involved in the collective defence. It is therefore true to say that the world is showing itself to be even more dangerous. We have reached the point where we are seeing growth back in the economy and inflation falling, so now is the right time to do this. The hon. Lady asks about the sums of money that will go into, for example, cyber or space. I do not have those figures on me. I would be very happy to write to her with an overview, because it will take a bit of collation to work that out exactly from the existing budget. Quite a lot of what happens in strategic command, which covers those areas, crosses over into other parts of the armed forces, so it is not a simple question to answer.
Mrs Flick Drummond (Meon Valley) (Con)
This is a very welcome statement, so I thank my right hon. Friend. He mentioned the Haythornthwaite report. When will we get an update, particularly on the plan to spend the £4 million investment in service families accommodation?
Stephen Farry (North Down) (Alliance)
I accept the need for additional defence spending, but may I ask the Defence Secretary for reassurance that the Government’s strategy for UK and global security going forward will have an appropriate balance of hard and soft power? By that I mean ongoing investment in diplomacy, humanitarian assistance, international development—potentially including the restoration of the target of spending 0.7% of gross national income—and, indeed, support for the international rules-based order.
Grant Shapps
I can certainly reassure the hon. Gentleman that that is something that we in the MOD are always looking to do. We have just made our seventh or eighth drop of food aid into Gaza, using the RAF. We are working with the Americans on other solutions, including the pier, and I work very closely with the Foreign, Commonwealth and Development Office. Indeed, I used to be a Minister in the former Department for International Development, so I am well aware of the issues he raises. The MOD will always look to assist, with our armed forces, wherever we can; we often combine hard and soft power.
James Sunderland (Bracknell) (Con)
This has been a good week for defence, and I commend the Government on their commitment to 2.5%, but the issue is how we spend it. Could the Defence Secretary confirm to the House that, rather than our focusing on exquisite exclusivity or—heaven forbid—indulging single service bad behaviour, the money will be spent on plugging capability gaps, better operating the platforms that we have, and ensuring that our forces have the activity, resilience and sustainment to maintain and enhance their world-leading and persistent global posture?
Grant Shapps
That is an excellent question. The Minister for Defence Procurement has done an outstanding job on a publication that I recommend to everyone in the House: “Integrated Procurement Model”. It is much more exciting than it sounds. That new model has already been responsible for bringing forward the procurement of the DragonFire by five years. Rather than our trying to create exquisite, unbelievably complicated and never-quite-right equipment, the model will bring equipment into the field and allow it to be spiralled and developed further. My hon. Friend is absolutely right: we will use this money much more intelligently to make sure that we get kit into the field, and expand and improve it from there.
Mike Kane (Wythenshawe and Sale East) (Lab)
While I welcome the increase to 2.5%, the modus operandi of this Secretary of State is to come to this House and announce billions of pounds of investment to get people salivating about it, only for it to never happen. Look at Northern Powerhouse Rail and High Speed 2. We know it, the country knows it and the brass knows it. The Times reports that we will fall to below 70,000 full-time equivalent troops. Where will we be with boots on the ground in a year’s time?
Grant Shapps
The way for this not to happen is for the public to vote for the hon. Gentleman’s party, because I have not heard this afternoon that the Labour party is committed to making it happen. If people want 2.5% by 2030, they should vote Conservative, because that is what we will give them. I think I will leave it there.
Sir Simon Clarke (Middlesbrough South and East Cleveland) (Con)
I add my tribute to the late Frank Field, who was an extraordinary man and a great parliamentarian.
In welcoming the announcement of an additional £75 billion over the next six years, which is much needed, may I urge the Secretary of State to consider the potential for a fifth successor-class submarine? I note that the patrol times for the Vanguard class are approaching 200 days, which is not sustainable, and it is vital that we give ourselves as much operational capacity as we can with our deterrent.
Grant Shapps
We will always keep a very close eye on how we ensure a constant at-sea nuclear deterrent. I can confirm that it has been at sea every single day for 54 years, and we do not intend to have that stretch broken. Quite what that requires is a matter for defence study. As my right hon. Friend knows, we are committed to delivering four Dreadnoughts, which will be far more modern. Like any modern piece of equipment, they are likely to have greater reliability as well. We will not let this country down when it comes to our nuclear deterrent. As I said in my statement, we are not doing this just because we are approaching an election. We have always believed in our nuclear deterrent, and we always will.
Kenny MacAskill (East Lothian) (Alba)
Even Winston Churchill recognised that modern conflicts are fought by people, not armies. That is why world war two was the genesis of the NHS and the welfare state. However, while military spending is increasing, public services are collapsing. Is it not as important to wage war on poverty at home as it is to prepare for war abroad? If there needs to be an increase in military and defence expenditure, surely it should come from the cancellation of the failed Trident project, which is impoverishing military services, rather than from public services. Why should the people pay for the Government’s wars?
Grant Shapps
I could not disagree with the hon. Gentleman more strongly. Even in my time as Defence Secretary, there are decisions that I have made that, if we had not had the nuclear deterrent, I would have hesitated in making. It protects us every single day in ways that are not always immediately obvious to everyone. The idea that by not investing in our defence we would somehow be safer, and that somehow all that money would be available to invest in all these other public services, is to misunderstand the first principle of every Government: we are here to defend the realm, without which there would be nothing to pay for internally, because we would not be safe externally.
Sir Edward Leigh (Gainsborough) (Con)
In the 1930s, a wise Government ensured that RAF airfields were upgraded and improved, and that saved us from extinction in 1940. If we are to be on a war footing, will the Secretary of State remind the Home Office that it is its duty to maintain the best runway in Europe, the 10,000-ft runway at RAF Scampton, instead of letting it rot, as it is at present? If the Home Office is incapable of doing that, will it hand it over to Scampton Holdings as soon as possible—as we have argued for 15 months—so that it can be used, improved and available for a future emergency?
Grant Shapps
My right hon. Friend is speaking to the converted. As a keen pilot, I agree with him entirely. In fact, this usually works the other way around, but I will offer him a meeting so that we can discuss RAF Scampton and its long-term future, rather than the short term, in more detail.
Gen Kitchen (Wellingborough) (Lab)
Coming from a naval family, it is important to me that Labour is also wanting to reach 2.5%. Our ambition is no less than that of the Government. The Defence Secretary has said that this defence spending increase will be funded in part by big cuts in the number of civil servants. How much of this cut will be in the MOD civilian workforce, and will the Royal Fleet Auxiliary be exempt?
Grant Shapps
I welcome the hon. Lady’s support for this package and for the 2.5% and gently suggest that conversations with those on her own Front Bench would be important at this point. It is in the interest of national security that both sides sign up to 2.5% by a deadline, which we note this afternoon has not happened. She asked a specific question about the reduction. In the MOD, it would be a 10,000 reduction by 2028. To be clear, that is a reduction from about 60,000 to 50,000. I personally believe that is exactly the right thing to do if it helps to pay for our brave men and women in the armed forces out in the country. Less bureaucracy and more action—I think that is a good thing.
Mark Pritchard (The Wrekin) (Con)
I thank the Secretary of State for his recent visit to Shropshire, which he referenced, and also to welcome his statement and the statement of the Prime Minister yesterday. This is record investment into UK defence, which will be very welcome in Shropshire. Would my right hon. Friend like to take this opportunity to put on record his thanks to all those that work in uniform and the civilians at RAF Cosford, at MOD Donnington, at Babcock and at RBSL— Rheinmetall BAE Systems Land—which he recently visited? Can he confirm that the UK’s and Shropshire’s defence is secure with this Government?
Grant Shapps
I warmly join my right hon. Friend in sending exactly that message. As he says, just last week I was looking at the first prototypes of the Challenger 3 coming off the production line in his patch. My only regret was that I was not able to see him at the same time.
Deidre Brock (Edinburgh North and Leith) (SNP)
My written questions this week have uncovered another worrying increase in nuclear safety events at nuclear weapons sites in 2023, with the first category A safety breach in 15 years at Faslane and the highest number of category B incidents since 2006. Category A incidents are defined as those that have an actual or high potential for radioactive release to the environment in breach of safety limits. A former chief adviser to a Prime Minister has described our existing nuclear stock as “rotting” and “a dangerous disaster”. Can the Secretary of State tell us how much of this extra spend will go towards ensuring that, at the very least, existing nuclear sites do not deteriorate further, threatening the health and safety of armed forces staff and surrounding populations?
Grant Shapps
I am pleased to report to the hon. Lady that our defence standards, particularly when it comes to our nuclear estate, are extremely high. Whenever an issue is found, it is properly and thoroughly investigated. She is right to say that it is important that we continue to invest in that. This money is good news: every bit helps and we want to ensure that it is spent appropriately. As it happens, we fund the nuclear estate appropriately, but this money will help to ensure that is put well beyond doubt.
James Gray (North Wiltshire) (Con)
This is a very welcome announcement. There are no strings attached, and a guaranteed move to 2.5% of GDP sends a powerful message to two groups of people: our NATO partners and our adversaries around the world. Does the Secretary of State agree, however, that the powerful message is undermined by what I can only describe as the mealy-mouthed response from the Labour, Liberal Democrat and Scot Nat Front Benches? If they will not support what we are doing, what sort of message does that send to Putin and to other enemies? Surely what we want now is cross-party consensus: it must be 2.5% and Labour must side with us on it.
Sarah Jones (Croydon Central) (Lab)
May I take this opportunity to pay tribute to the reservists based in Croydon, who, among many roles, have been in Estonia helping to keep us all safe? Labour wants to reach 2.5%, but my right hon. Friend the shadow Defence Secretary has asked why there is no budget line or fully funded plans for the announcement. This appears to be a bit of a pattern across Government. Only yesterday, I learned that a £1 billion announcement made about carbon capture and storage several years ago still appears nowhere on a Treasury budget line. If the Government play so fast and loose with our public funding, how on earth will the Secretary of State deliver the economic stability on which our defence spending relies?
Grant Shapps
I encourage the hon. Lady, and all Opposition Members, to have a closer look at what we announced yesterday. This is a fully funded announcement. We have explained where the money will come from. We have set out in tables that you can go and read, Madam Deputy Speaker, the funding for the £75 billion. It is true that a choice exists that Labour Front Benchers need to talk not only to their Back Benchers about—because they will not agree with increasing to 2.5% by 2030—but unfortunately to many on their Front Bench as well. They will need to talk to 11 in particular—the ones who have voted against Trident, some of whom wanted to leave our nuclear deterrent behind and possibly even leave NATO as well. Conservative Members are, however, entirely united in the idea of spending 2.5%, setting a date for it now, setting out how that spending will work and making the choices to get there.
Ruth Edwards (Rushcliffe) (Con)
I strongly welcome this investment, which rightly recognises the increasingly unstable world in which we are operating. Many of our military capabilities are powered by advanced semi-conductors, and recent years have shown how fragile these supply chains can be. Will the Secretary of State set out what the Government are doing to develop strong alliances focused on securing our supply of that vital component?
Grant Shapps
My hon. Friend is right. As Business Secretary, I took the decision on Newport Wafer Fab, which highlighted to me the importance of our own supply chain for advanced semiconductors, particularly in the defence realm. That is one reason that, in the plan we published yesterday, we have committed to a new level of 5% of R&D for defence, to ensure that we are not only researching and developing but, through the expansion of the military capability in the industrial base, producing the things that we need for our armed forces.
Ashley Dalton (West Lancashire) (Lab)
Labour wants to reach 2.5%. I do not know how many more Labour Members need to say that before it gets through. If anybody was listening, my right hon. Friend the Member for Wentworth and Dearne (John Healey), the shadow Secretary of State, also said that clearly in his contribution. The Secretary of State said repeatedly on the media round this morning, and in the Chamber, that on page 20 we can find the fully costed plan. Bearing in mind that there is no mention on page 20 of how the 2.5% will be reached through the cuts to the civil service that the Secretary of State has described, and that the entire civil service budget is only £16.6 billion, where is the fully funded plan? It is not on page 20.
Grant Shapps
The hon. Lady once again asserts that Labour wants to reach 2.5%. Labour cannot just assert it; it has to will the means to get there. I did not hear that from the Labour Front Bench in response to this statement or yesterday’s announcement. As in all normal cases, and particularly spending reviews, the Treasury will set out all the numbers going forward, but the fact of the matter is that the figures published yesterday show £77 billion more being spent from this year through to the end of the decade, in part paid for by removing 72,000 civil servants from the system so that we get back to where we were before covid. If Labour does not want to follow that approach, it could follow another, but the hon. Lady cannot just assert that Labour agrees without explaining how it will do it.
Philip Dunne (Ludlow) (Con)
I refer the House to my entry in the Register of Members’ Financial Interests.
I also warmly welcome the increase of defence spending to 2.5% of GDP, and I congratulate my right hon. Friend and the Prime Minister on the leadership role they are providing to NATO. On where this extra money will go, will my right hon. Friend elaborate a little more on the balance between meeting the existing challenges in the equipment plan and introducing innovative new capability through the new procurement model that he commended to the House earlier?
Grant Shapps
We will both ensure that we deliver the things that we have said we will deliver. In a changing world, with the threat of Iran, Russia, a much more assertive China and a nuclear-armed North Korea, we are adjusting our programme to ensure that it does what is required.
New innovations, as my right hon. Friend will have gathered from my comments about spending 5% of GDP on R&D, are very important to us. We can now see how, in an asymmetric war, Russia’s entire Black Sea fleet has been made inoperative by a Ukrainian navy that has no fleet at all—a ghost fleet. We need to consider how we do all that, and this money will be used wisely in that context.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State, the Prime Minister and the Government for their clear commitment to 2.5%. I also thank them for committing an extra £500 million of aid for Ukraine, which is important. The Secretary of State and the Government are setting a target for the rest of NATO to follow, and I hope it will.
I very much welcome the news of an increase in defence spending, which my party and I have pushed for, but how much of the increase will be feet on the ground and how much will be enhanced cyber-security?
Grant Shapps
We are sticking with the defence review and refresh, which set out the exact personnel numbers. I think it is 188,000 across all three services. I have explained the extent to which new technology is helping to shape our thinking, but so are the lessons from Ukraine, particularly on the need to have munitions and larger stockpiles available.
There are, of course, many excellent locations, including in Northern Ireland, where more munitions and missiles are being created as we speak, with about an eightfold expansion. I look forward to visiting some of those who will enjoy the additional £10 billion, bringing the total to about £25 billion, over the next few weeks.
Several hon. Members rose—
Mr John Baron (Basildon and Billericay) (Con)
Thank you, Madam Deputy Speaker.
I chair the 1922 defence committee, and the Secretary of State will know from Prime Minister’s questions that the whole Conservative party welcomes this announcement, but may I suggest that the message from the Government would carry so much greater resonance globally if the official Opposition also signed up to it? I am a former member of the armed forces, so I can assure him that the country speaking as a whole—the official Opposition and the Government together—carries much greater weight internationally for the good of the country.
Grant Shapps
My hon. and gallant Friend is absolutely right. We have seen how that has worked with Ukraine, and I am sorry that it is not working today with the timeline to get to 2.5%. I am afraid it proves, once again, that this country’s safety is in the right hands when Conservatives are in power.
Jason McCartney (Colne Valley) (Con)
I echo the words of the Secretary-General of NATO, Jens Stoltenberg, who said after yesterday’s defence spending announcement that
“once again, the UK is leading by example.”
In the light of the £500 million support package for Ukraine—and having seen the awful pictures of missile attacks on Ukrainian cities, including the destruction of the TV tower in Kharkiv in the past 48 hours—can my right hon. Friend confirm that the much-needed ammunition and missile systems will be in Ukraine as soon as possible, to aid its fight against Russian aggression?
Grant Shapps
My hon. Friend is absolutely right, both about what the Secretary-General said about how we are leading NATO in this regard, and about the absolute importance of our being there for Ukraine. We cannot afford for this war to be lost, and it will not be lost. I will make sure that he receives the comprehensive list of the items that we will now be supplying.
Holly Mumby-Croft (Scunthorpe) (Con)
It was widely reported some months ago that my right hon. Friend and the Secretary of State for Levelling Up, Housing and Communities had written to the Prime Minister setting out their concerns about the future of Scunthorpe’s blast furnaces. For all the reasons he has stated today, this is more important than ever, so I commend him for his foresight prior to his current role. Will he consider the importance of good-quality, British-made steel to our nation’s defence capabilities?
Grant Shapps
I well remember my hon. Friend’s pretty much constant lobbying. She is a great champion for her steelworks, and her comment about the importance of using British steel in British defence is taken on board.
Richard Graham (Gloucester) (Con)
We should all be grateful that today’s statement absolutely answers the widespread assessment of the increased risk in the world. Can my right hon. Friend confirm that he, the Foreign Secretary and the Prime Minister are discussing contributions with our European NATO partners? How important is our commitment to NATO both to the current US Administration and to any future US Administration? Lastly, does he agree that private sector innovation—Roke has recently opened an office in Gloucester—will be an important part of our defence procurement?
Grant Shapps
My hon. Friend is right about ensuring that we use this announcement to persuade other NATO members to do the same thing. I was proactively speaking to and texting my colleagues throughout NATO and beyond on this just yesterday, and I received very encouraging responses. I look forward to hearing more about the company in his constituency.
Andy Carter (Warrington South) (Con)
I congratulate my right hon. Friend and his Ministers on the work they have rightly done to reform defence procurement, given the significant increase in spending announced by the Prime Minister. How will these changes ensure that our military forces receive equipment more quickly and, in particular, how will they benefit British manufacturers by offering global export opportunities?
Grant Shapps
The integrated procurement plan, brilliantly created by my hon. Friend the Minister for Defence Procurement, has ensured that exports and exportability are a key part of the contract. I have mentioned how we have already used this model to speed up the production of DragonFire.
We are also using the integrated procurement model to make sure that we do not over-spec things, so that they do not become like—
Grant Shapps
I was not going to say Ajax, but I will say it now. Ajax was over-specced to the point where it became a very delayed project. Fortunately, it is now back on track.
Siobhan Baillie (Stroud) (Con)
Stroud constituents will welcome the Prime Minister’s boost for defence spending and ongoing focus on the dangers that we all face. The Stroud district is blessed with many strategically important businesses, such as Steller Systems, which I was with on Friday, Retro Track & Air and Impcross, to name but a few. These are innovative, nimble and agile companies doing extraordinary things. On behalf of the small and medium-sized enterprises and the small family businesses that are playing their part in protecting our country and others around the UK, will the Secretary of State confirm that SMEs will get their fair crack at contracts and that the bigger boys will pay them on time, to keep them alive for the benefit of all?
Grant Shapps
My hon. Friend is absolutely right. I predict that companies in Stroud will do very well from this if they are producing innovative and useful equipment for our armed forces. I take on board her point about small and medium-sized enterprises. When I was running my printing business and companies paid late, it would put huge pressure on cash flow. One of the great things that this Government have done is speed up the necessity for large organisations, particularly the primes, to pay properly and on time.
Marco Longhi (Dudley North) (Con)
It is great to hear the Secretary of State’s announcement about the £75 billion investment. Does he agree that it sends a clear signal to our brave armed forces that the party in government backs them, to the country that we back defence of the realm, and to companies in our supply chain up and down the country, including those in my constituency, that we back job security? It also exposes the Opposition as having no plan at all for defence.
Grant Shapps
My hon. Friend hits the nail on the head. The Prime Minister made the announcement yesterday in front of British troops, who are out in Poland doing incredible work. The reassurance of the idea that there is a period of time leading up to 2.5%, with the first increase coming immediately, really helps them to do their job, because they know that they are wanted and trusted, and that we honour their work. I agree with the other comments he made. It is a shame that there has not been an entirely cross-party welcome for the announcement.
Jane Stevenson (Wolverhampton North East) (Con)
I warmly welcome the announcement. The Secretary of State was kind enough to call in on me in Wolverhampton North East last week, and I spoke about the importance of aerospace to my local economy, with companies like HS Marston Aerospace, Collins Aerospace and Moog. How can he ensure that those companies benefit from the highly skilled, well paid jobs that this uplift in spending will bring? Does he agree that industry needs the certainty of cross-party agreement in order to make those investments, and that the Labour party needs to step up?
Grant Shapps
I very much enjoyed my visit to my hon. Friend’s constituency. She did indeed tell me about the defence companies that are so vibrant in her area. The future looks incredibly bright for them, given the amount we are investing and the fact that defence is typically an extremely well-paid profession. There is enormous ability for apprentices and graduates to be recruited, so her constituents will be happy about the announcement.
Dr Neil Hudson (Penrith and The Border) (Con)
I congratulate the Prime Minister and the Secretary of State on the welcome announcement that defence spending will be increased to 2.5% of GDP, and on their leadership on funding and support for Ukraine. For the sake of freedom, democracy and global safety, it is so important that Ukraine prevails. The announcement shows that it is our Conservative Government who will protect our nation and stand with our allies in the face of increasing international threats. Will the Secretary of State confirm that this sensible linear increase in funding for defence will help our defence industry to ramp up production in parallel, meaning that our armed forces will be supported, capable and resilient, and be able to keep us and our allies safe?
Grant Shapps
I absolutely can confirm that. One of the features of the way that we have done this is to create a straight line from next year to 2030, to ensure that industrial capacity can ramp up with certainty behind it. I am pleased to confirm that the answer is yes.
Danny Kruger (Devizes) (Con)
The Chief of the Defence Staff from Estonia was in Salisbury plain, in my constituency, last week. He told us that his country has 40,000 men and women in its army reserve, ready to serve at 24 hours’ notice; I call that being on a war footing, given that Estonia has a population 50 times smaller than ours. I am not proposing that we try to replicate that—proportionally, that would mean a 2 million-strong reserve—but will he consider using some of the money to boost our important reserve force?
Grant Shapps
My hon. Friend will know that we are twinned with Estonia through NATO and we provide protection to it. Estonia is very much on the frontline with Russia, in a way that we are fortunate not to be. We currently have 30,000 reserves. Rather than use them, we can use the many other things we bring to NATO and to Estonia’s protection, including the ability to provide personnel and equipment, which we do on regular basis.
Simon Fell (Barrow and Furness) (Con)
I commend my right hon. Friend on the work he has done in setting the new 2.5% baseline. It will reassure our allies, send an important message to our adversaries and strengthen our industrial base. I thank him for the part he played in securing £220 million for Barrow, as a result of the Team Barrow project, securing our future and easing delivery of Dreadnought and SSN-AUKUS. Barrow shipyard is not alone in delivering the submarine enterprise, so will my right hon. Friend confirm that some of the £75 billion will be spent on other key sites, such as Faslane, Devonport and others?
Grant Shapps
I absolutely can confirm to him that it is intended to benefit sites across the country. In the document we published yesterday, a map on page 10 shows how the different areas and regions of the country will benefit, not just in our nuclear estate but throughout the defence estate. There is not a constituency that does not benefit from the £75 billion announced yesterday. My hon. Friend welcomes the announcement and it is time for others to follow that lead.
Robin Millar (Aberconwy) (Con)
I add my own tribute to the late Lord Field. He took the time to talk to me when I was a Conservative councillor about a concern we shared for the weakest and most vulnerable in society, which reaches across the aisles of the House.
There is no doubt that the international threat is developing and the world is a more dangerous place, so I welcome today’s statement. What I hear is an investment in the armed forces that we need, not necessarily the armed forces we have. Does my right hon. Friend share my concern that the statement from the Opposition that they are planning to conduct a review is verging on the careless, in that it gives comfort only to those who seek to do the UK harm?
Grant Shapps
My hon. Friend is right about the armed forces that we need, not the armed forces that we have. We want our armed forces to be lethal, quick, agile and capable, which is why it is so important that we invest this £75 billion. He is also right to point out that to have yet another review is simply to invite chaos and delay at exactly the time our adversaries are looking at us, hoping that we do not get on with the job of delivering an extra 2.5% of GDP in funding, which would play into their hands.
Ian Levy (Blyth Valley) (Con)
I thank the Secretary of State for the announcement of 2.5% in defence spending by 2030. Will my right hon. Friend acknowledge the fantastic effort delivered by our reserve forces, which I had the pleasure to see for myself in Northumberland last Saturday?
Grant Shapps
I welcome my hon. Friend’s comments. There are many members of the reserve forces in the House, including the Minister for Defence People and Families, my right hon. Friend the Member for South West Wiltshire (Dr Murrison). We thank all members of the reserve forces for their service and for the time they give, and we thank their employers, who allow them to take the time to be reservists. We are grateful for all they do.
AUKUS
Grant Shapps Excerpts(7 months, 1 week ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Secretary of State for Defence (Grant Shapps)
Two and a half years ago, the United Kingdom, the United States and Australia launched the groundbreaking new strategic defence and security partnership, AUKUS.
As we have seen through recent events, the world has become more dangerous. Against an increasingly contested and volatile landscape, defence partnerships like AUKUS have become critically important in ensuring the UK and our allies maintain a strategic advantage.
For over a century, AUKUS nations have stood shoulder to shoulder, along with other allies and partners, to help sustain peace, stability, and prosperity around the world.
On 8 April, along with my Australian and United States counterparts, I announced that AUKUS nations, having made sufficient progress trilaterally, are now ready to begin consultations with additional countries regarding areas where they can contribute to, and benefit from, this historic work under pillar 2: advanced capabilities. Our work on conventionally armed, nuclear-powered submarines under pillar 1 will remain trilateral.
Partners have always been clear on the intent to engage additional nations in pillar 2 projects as the work progresses. In identifying collaboration opportunities, we will consider factors such as technological innovation, financing, industrial strengths, ability to adequately protect sensitive data and information, and impact on promoting peace and stability in the Indo-Pacific region. Furthermore, the potential collaborations will complement and build on the close bilateral relationships that all three AUKUS nations have with other countries.
Therefore, Australia, the UK and US are considering the potential for involving Japan in some elements of the pillar 2 programme. Pillar 2 includes quantum technologies, undersea capabilities, artificial intelligence—AI—and autonomy, cyber, hypersonic and counter-hypersonic capabilities, and electronic warfare capabilities, supported by innovation and information sharing.
The UK, Australia, and the United States are committed to continued openness and transparency on AUKUS. This is another significant leap for the partnership, and I look forward to keeping the House updated on progress.
A copy of the full Defence Ministers’ statement has been placed in the Library of the House.
Attachment
The attached AUKUS Policy Paper can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2024-04-15/HCWS404/
[HCWS404]
Wider Service Medal
Grant Shapps Excerpts(8 months ago)
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The Secretary of State for Defence (Grant Shapps)
It gives me great pleasure to announce to the House the introduction of the wider service medal, a new medal to recognise the service of personnel outside the traditional “risk and rigour” criteria of existing medals.
The wider service medal represents a significant change in medallic recognition for the UK armed forces, and on occasions other public servants, acknowledging the evolving context within which our personnel operate. The medal ensures that the operational impact of many activities, previously considered out of scope for medallic recognition, is now able to be recognised.
The overarching eligibility criteria for the medal is defined as follows:
Operational activity where there is evidence of operational impact, non-physical risk, and rigour.
Personnel must have accrued 180 days aggregated service on eligible operations. Subsequent service of 180 days will result in the award of a bar to the medal, up to a maximum of three bars.
The medal will be retrospective to December 2018 for ongoing operations.
The medal is evidence of our gratitude and respect for the dedication of our armed forces, and other public servants, and recognises the diverse roles our personnel play in the defence of our nation. The initial tranche of medals will be awarded in the early summer.
[HCWS386]
Oral Answers to Questions
Grant Shapps Excerpts(8 months ago)
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Henry Smith (Crawley) (Con)
The Secretary of State for Defence (Grant Shapps)
The UK is committed to a free and open Indo-Pacific, and we are putting our regional approach on a long-term strategic footing. I returned this weekend from Australia, where we have been talking to our colleagues there, working hard on the Indo-Pacific programme.
Henry Smith
Stability in the Indo-Pacific has been largely aided by the military base presence on Diego Garcia. What assessment has the Defence Secretary made of the military base and the island of Diego Garcia remaining under full British sovereignty, so that we can help to counter the many threats of the modern world, whether that be China, Iran or others?
Grant Shapps
As I think my hon. Friend knows, I share the goal of ensuring that the base on Diego Garcia remains permanently available for our use, and for the United States. It is strategically positioned, it is absolutely vital and there is read-across to our military facilities elsewhere. It remains safe in our hands.
Tim Farron (Westmorland and Lonsdale) (LD)
When assessing our ability to influence the stability of that region, or any other, has the Secretary of State conducted any kind of impact assessment of the reduction of our investment in international aid from 0.7% of GDP, or the fact that we have the smallest standing Army in the United Kingdom for 200 years?
Grant Shapps
The hon. Gentleman will recognise that I look after the Defence budget, rather than the overseas development budget, but I think he will welcome the fact that, because of the Indo-Pacific tilt, we have ships with a permanent presence there—HMS Spey and HMS Tamar—and the littoral response group south, which operates in the Indo-Pacific. We have already sent the carrier strike group previously; it is going to the region again next year. That is in addition to the global combat air programme sixth-generation programme, and of course AUKUS, for which I was in Australia at the weekend. I think we can all agree that we are doing a lot more than ever before in the Indo-Pacific.
John Healey (Wentworth and Dearne) (Lab)
As you did, Mr Speaker, I pay tribute to the Armed Forces Minister at his last Defence questions. Since the last election, we have had five Chancellors, four Foreign Secretaries, three Prime Ministers and two Defence Secretaries, but only one Armed Forces Minister. He has been a rare constant in the turmoil of Government, totally committed to defence. We thank him for that and wish him well.
On the Indo-Pacific, we welcome last week’s updated defence agreement with Australia, further progress on AUKUS, and today’s 10-year plan for Barrow to support AUKUS. This is our most important strategic alliance beyond NATO, so why has the Defence Secretary given the leadership of key parts of AUKUS to the most junior Minister in his Department?
Grant Shapps
As I explained, I have just been in Australia talking about AUKUS. I have previously been to Japan, I think at least twice but possibly three times, on AUKUS, and to Italy—sorry, not to Italy, obviously, on AUKUS; that was on GCAP, but with an Indo-Pacific tilt. I agree with the right hon. Gentleman’s comments about the Armed Forces Minister, but I am interested to hear his comments on the Indo-Pacific. Back in 2021, when the integrated review suggested a tilt to the Indo-Pacific, he called it a serious flaw in the programme, and urged us not to defocus from elsewhere in the world.
Judith Cummins (Bradford South) (Lab)
The Secretary of State for Defence (Grant Shapps)
There is a desperate need for increased humanitarian support to Gaza. The UK, including the Ministry of Defence, is working collectively with allies, partners and international organisations to deliver desperately needed aid to the Gazan population.
David Simmonds
My constituents are rightly proud of the work that our armed forces are doing to facilitate the delivery of aid, to prevent a colossal humanitarian catastrophe. What further steps can be taken to ensure that British aid finds its way to civilians in need, rather than into the hands of Hamas fighters?
Grant Shapps
That is one of the greatest challenges in the current situation. We are working with the British Red Cross, UNICEF, the UN World Food Programme, the Egyptian Red Crescent and others to ensure that aid gets to the right places. That is extremely challenging, and has slowed down aid delivery.
Will Quince
The Israeli Government have said that they want to “flood” Gaza with aid. Will my right hon. Friend assure the House that we will work with our partners globally to get more aid into the hands of civilians in Gaza, and will assist the Israelis to deliver on that pledge as soon as possible?
Grant Shapps
I inform my hon. Friend that we have already delivered 74 tonnes of humanitarian aid via the RAF, and 87 tonnes through the Royal Fleet Auxiliary. In addition, we are pursuing land, air and maritime routes.
Judith Cummins
With half of Gaza already starving and the rest teetering on the edge of famine, and the UN Security Council voting for an immediate ceasefire in Gaza, access to humanitarian aid is crucial. This month, the Foreign Secretary stated that the UK would support the building of a temporary pier in Gaza to allow hundreds of extra daily truckloads of aid into the strip. Will the Secretary of State outline what steps he is taking, along with the Foreign Secretary, to ensure that the pier is constructed as quickly as possible?
Grant Shapps
The hon. Lady will be pleased to hear that I have sent teams both to Tampa to work with US Central Command and to the region to help with planning and constructing that pier. In addition, right at the beginning of the conflict, I ensured that we did hydrographic research, to aid in exactly this kind of situation, when the conditions were right to get a pier built. This is not a trivial endeavour, but we are working to deliver the pier as quickly as possible; there is the potential to get 2.5 million meals a day to Gaza.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
The UK Government’s ability to deliver humanitarian aid depends on the UK’s relationship with its middle eastern partners. What impact does the Secretary of State think that recent events and UK Government foreign policy decisions have had on that crucial relationship with those middle eastern partners?
Grant Shapps
The hon. Lady will be pleased to hear that the Foreign Secretary, the Prime Minister and I have been very proactive in speaking to and making multiple visits to the region. I have visited the majority of countries in the middle east and Gulf region to discuss exactly the points that she has raised. There is now a large-scale programme of using a pier to get food in, in addition to the many other efforts made. As my hon. Friend the Member for Colchester (Will Quince) pointed out, the issue is not just getting the aid there, but then distributing it; that is a great concern.
Dave Doogan (Angus) (SNP)
When will the Government make a further public determination on Israel’s commitment to international humanitarian law, given the man-made famine unfolding in northern Gaza, which is compounded by Israeli moves to obstruct access to aid? If the UK finds, as the UN Secretary-General, Human Rights Watch and Amnesty International did, that the Israeli Government and the Israel Defence Forces have violated international law, what steps will the UK Government take to prohibit further arms sales to Israel, pending a resolution of the situation? Given that the Security Council has just called for a ceasefire, what steps will the Government take through the defence sector to accelerate all available aid for civilians in Gaza?
Grant Shapps
It is a pity to ask all those questions without referencing the 100-plus hostages who are still being held by Hamas, who brutally slaughtered the population deliberately rather than as a by-product of war. The hon. Gentleman asks a number of questions. I can tell him that on arms exports to Israel, an issue for which I am responsible, it is, to put it in proportion—I think, from the top of my head—just £48 million for the past year. The numbers are actually very small indeed. He will know that his latter question is one for the Foreign, Commonwealth and Development Office.
Nick Smith (Blaenau Gwent) (Lab)
Nigel Mills (Amber Valley) (Con)
The Secretary of State for Defence (Grant Shapps)
Like others in the House, I pay tribute to the Minister for Armed Forces, my right hon. and gallant Friend the Member for Wells (James Heappey)—soldier, MP, and Minister during almost the entire Parliament. His knowledge of this subject is matched only by his great passion for it, and we are all very grateful for his service.
Last week I was in Australia, signing an historic defence treaty to enhance our Indo-Pacific security, and meanwhile our trilateral AUKUS partnership with the United States is accelerating. As the House will know, ASC and BAE Systems have a multibillion-pound contract for the SSN-AUKUS. Earlier today the Prime Minister and I launched our very first nuclear defence Command Paper, which will set out the true benefit of this great enterprise, making it a wholly national effort.
Nigel Mills
I welcome the publication of the Command Paper, and in particular the important role played by Rolls-Royce in Derby, but does my right hon. Friend agree that for this to be a truly national enterprise, there must be a truly national supply chain and access to jobs for people throughout the country?
Grant Shapps
My hon. Friend is right about the extent of the supply chain. In addition to the very large investment in Rolls-Royce, to which the Australians contributed £2.4 billion last week, and all the work in Barrow that is described in the Command Paper, there are benefits for virtually every constituency in the country.
John Healey (Wentworth and Dearne) (Lab)
We condemn the deadly terrorist attack in Moscow on Friday, and our thoughts are with all those affected, but the attack must not become a Kremlin cover for Putin’s illegal war in Ukraine. In recent days, we have seen multiple Russian strikes on Ukrainian cities, yet the last UK air defence support was announced last year. When is the next one?
Grant Shapps
I join the right hon. Gentleman in sending our condolences following the horrific terror attack. He is absolutely right to say that we are aware of no connection whatsoever with Ukraine; indeed, ISIS has claimed responsibility. We must resist Putin’s efforts to try to link the two.
With regard to air defence, there have been much more recent attempts to aid our Ukrainian friends, including through the International Fund for Ukraine, which has laid 27 contracts. We have a £900 million fund, run by the UK on behalf of a large number of other countries.
John Healey
Of course, anything more recent was from the International Fund for Ukraine, not the UK, which is why we strongly welcomed the £2.5 billion of UK military support for 2024. However, for nearly three months since that announcement, Ministers have said that the first deliveries to Ukraine will not happen until Q1 of the new financial year. Wars do not follow financial years, so when will the UK move beyond this stop-start military aid and help Ukraine with the spring/summer offensive?
Grant Shapps
I can tell the right hon. Gentleman that we have a constant flow of foreign materiel that we are buying and sending into Ukraine. I recently announced £325 million for British-Ukrainian drones, and we have increased the overall amount of money going to Ukraine from the previous two years’ £2.3 billion to £2.5 billion. I gently say to the right hon. Gentleman—this has been raised by a couple of my colleagues today—that he needs to explain how the Opposition would manage an increased budget for Ukraine, when their plan is to cut £7 billion from the overall defence budget.
Andrew Selous (South West Bedfordshire) (Con)
Samantha Dixon (City of Chester) (Lab)
Grant Shapps
The hon. Lady be pleased to know that I was on HMS Albion the other week and that she has not been mothballed. The other ship will be the first to sail—I do not know the timing, as that will depend on operational requirements—but they are both continuing in operation.
Paul Howell (Sedgefield) (Con)
Like many colleagues across the House, I attended the all-party parliamentary group for UK-Israel and Friends of Israel event. We were joined by two released hostages and a delegation consisting of young siblings, sons, daughters, grandchildren and cousins of those being held hostage in Gaza. It is now five months since the hostages were taken, so will the Secretary of State ensure that those victims remain right at the front of his mind in all decisions that are taken on the middle east?
Grant Shapps
My hon. Friend can absolutely have that assurance. It is shocking to see what is happening in the region, but it is too often forgotten—including in this House today by some Opposition Members—that this all began with the taking of those hostages. We will never forget.
Martyn Day (Linlithgow and East Falkirk) (SNP)
Jessica Morden (Newport East) (Lab)
Grant Shapps
We are working to try to bring supplies to all the citizens of Gaza. I did not run through the list of provisions, but it does include provisions for those in medical need, particularly women who may be pregnant. As I mentioned, we are working on plans with the Americans in particular, but also with the Jordanians, to provide vastly greater amounts of aid into Gaza.
Mr Tobias Ellwood (Bournemouth East) (Con)
The terrible terrorist attack in Moscow reminds us that jihadi extremism has not disappeared. Given its ideology, its reach and its strength, does the Secretary of State agree that ISIS-K is just as much of a threat to the west as it is to Russia?
Nuclear Defence
Grant Shapps Excerpts(8 months ago)
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The Secretary of State for Defence (Grant Shapps)
I am today laying before the House the Defence Nuclear Enterprise Command Paper, “Delivering the UK’s Nuclear Deterrent: A National Endeavour”.
The Command Paper establishes the UK’s nuclear programme as a critical “national endeavour” that is vital for our long-term security and prosperity. It details for the first time the full breadth of activity required to sustain and modernise the infrastructure and activities that deliver the UK’s continuous at-sea nuclear deterrent—a cornerstone of national and global security for more than 55 years.
The Command Paper underlines the importance of our partnerships with the communities, businesses and international allies that underpin the deterrent and protect our way of life. It articulates how, in response to the evolving security environment, we will deliver the capabilities and programmes necessary to maintain and sustain our independent nuclear deterrent. It does not represent a change in long-standing nuclear doctrine or our ongoing commitment to our disarmament and non-proliferation treaty obligations.
To deliver the required skilled workforce needed to meet our requirement, the civil and defence nuclear sectors will invest at least £763 million in skills, jobs and education, and will see 40,000 additional jobs created by 2030. The Government and industry have come together to launch a nuclear skills plan to create more than 5,000 new apprentices, and double the number of graduates over the next 4 years. This plan will also create more than 400 specialist PhDs over the same period. This collaborative approach will be enshrined in a nuclear skills charter between Government and industry.
In parallel, we are announcing a plan for Barrow, a new partnership between national and local government, BAE Systems and the local community that will oversee investment and development in Barrow-in-Furness, the home of submarine building in the UK for the past 100 years. This aims to ensure that it is the kind of attractive place to live and work that will sustain the skilled workforce required in the decades to come. The initial commitment will be for a Barrow transformation fund, a 10-year endowment-style funding settlement of £20 million a year over the next decade, providing the multi-year certainty and stability needed to support and regenerate the town. This fund will be administered through DLUHC, working with the new Barrow delivery board and other Government Departments to deliver it. DLUHC will make a further announcement on the appointment of the Barrow delivery board chair in due course.
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AUKUS: BAE Systems Submarine Contract
Grant Shapps Excerpts(8 months, 1 week ago)
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The Secretary of State for Defence (Grant Shapps)
Just over two years ago, the United Kingdom, the United States and Australia launched the ground-breaking new strategic defence and security partnership, AUKUS. As we have seen through recent events the world has become more dangerous. Against an increasingly contested and volatile landscape, defence partnerships like AUKUS have become critically important in ensuring the UK and our allies maintain a strategic advantage.
For over a century, AUKUS nations have stood shoulder to shoulder, along with other allies and partners, to help sustain peace, stability, and prosperity around the world.
I am delighted to be in Australia with the Australian Deputy Prime Minister and Defence Minister, Richard Marles, and the United States Ambassador to Australia, Caroline Kennedy, to announce that BAE Systems, working with ASC Pty Ltd, formally known as the Australian Submarine Corporation, will build Australia’s conventionally armed, nuclear-powered submarine fleet.
This announcement will generate billions of pounds’ worth of potential export opportunities for the UK across the life of the submarine programme. This major collaboration will help secure the future of our British defence nuclear enterprise, adding weight to this Government’s commitment to levelling up by creating thousands of jobs across the UK and establishing export opportunities for UK businesses through the whole of the AUKUS supply chain.
Other parts of the UK’s world-leading submarine industrial base will also contribute to this momentous programme, including Rolls-Royce, which will build all of Australia’s nuclear reactors. To support the planned delivery of SSN-AUKUS, Australia has committed to significant investment in Rolls-Royce and Sheffield Forge- masters, which, alongside an injection of £3 billion into its defence nuclear enterprise by the UK Ministry of Defence, announced by the Prime Minister last year, will see Rolls-Royce Derby double in size, creating 1,170 highly skilled jobs to support the growth of a UK work- force that will help to deliver the SSN-AUKUS programme.
The announcement of BAE Systems and ASC, as Australia’s joint industry partners for building their SSN-AUKUS submarines, demonstrates the high esteem in which UK industry is held worldwide. Over 21,000 people will be working on the SSN-AUKUS programme in the UK at its peak, concentrated in Barrow-in-Furness and Derby, building on the world-class manufacturing and engineering capabilities the UK has developed over the last 60 years. It signals the exceptional level of trust that Australia has in our nuclear enterprise, as we in turn support Australia, through the Australian Submarine Agency, as they build their own fleet of nuclear-powered submarines.
This historic submarine builder deal follows months of negotiations and is a monumental success for British industry. This, along with Rolls-Royce building the nuclear reactors for both the Australian and UK SSN-AUKUS boats, puts UK industry at the heart of this crucial defence partnership. It demonstrates that the UK’s nuclear workforce, who will bring their experience and excellence to deliver this important submarine capability for Australia, is world-leading.
This comes a year after the Prime Minister, along with the President of the United States and Australian Prime Minister met in San Diego to announce that the first generation of AUKUS submarines would be based on the UK’s world-leading design, SSN-AUKUS.
Since then, we have made good progress delivering SSN-AUKUS, including through increased training opportunities for Australian sailors in the UK and US. AUKUS partners are investing significantly to ensure success of the Optimal Pathway and are working at pace to transform and integrate our trilateral industrial bases to support SSN cooperation. Last year, the UK placed £4 billion of contracts with UK industry for the next stage of design and to order long-lead items for SSN-AUKUS. Australia has agreed to a $1.5 billion (AUD) investment for early priority works at HMAS Stirling, to put in place the enablers for the safe and secure rotational presence of United Kingdom and United States SSNs through Submarine Rotational Force-West from 2027. Australia has also commenced enabling works at the future nuclear-powered submarine construction yard at Osborne Naval Shipyard in Adelaide. The United States has likewise announced significant investment in its submarine industrial base to increase the production rate of Virginia class submarines as quickly and effectively as possible, to meet its own fleet requirements and AUKUS commitments.
Taken together, these announcements signal the partnership’s continuing progress to deliver Australia a conventionally armed, nuclear-powered submarine capability, which includes an unshakeable commitment to set the highest standards for nuclear non-proliferation. That is why each phase of the AUKUS programme has included extensive engagement with the International Atomic Energy Agency, underscoring our commitment to developing an approach which protects classified information and strengthens the global non-proliferation regime.
The defence of UK values will continue to depend on the strength of our relationships with allies, evident through partnerships like AUKUS. The UK, US and Australia remain fully committed to this shared endeavour, which, through the announcement of this historic submarine deal, secures this ambition for the decades ahead.
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