(1 month ago)
Commons ChamberOn the subject of improving service life for service personnel and their families, thousands of families will be getting the unwelcome Christmas present this year of a 20% tax on the school fees that they pay to fund an independent boarding school or, otherwise, will have to allow their children’s education to be constantly destabilised. Given that this new tax is 100% the responsibility of the Government, will the Secretary of State confirm that the continuity of education allowance will be uplifted to fund 100% of the new tax on those fees?
In relation to the cost of renting back our own military base on the Chagos islands, last week the Minister of State, Foreign, Commonwealth and Development Office, the hon. Member for Cardiff South and Penarth (Stephen Doughty), said that the reason the Government refused to tell us what the cost will be is that
“it is not normal practice for the UK to reveal the value of payments for military bases anywhere across the globe”.—[Official Report, 13 November 2024; Vol. 756, c. 793.]
Is that correct?
(1 month, 1 week ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
Thank you for granting this urgent question, Mr Speaker, especially on Armistice Day. I am grateful for the Secretary of State’s response, but he keeps going back to 2010 when we spent 2.5%. That is true, but he says it without adding the fact that his Government had bankrupted the country. In fact, I asked the House of Commons Library about this. The Institute for Fiscal Studies has confirmed that if Labour had returned to government, it was planning cuts to the defence budget of 20% to 25%.
But this question is about today. The threat picture is far graver than it has been for many generations, as the Chief of the Defence Staff confirmed at the weekend. As the Secretary of State says, the Labour party committed in its general election manifesto to a
“path to spending 2.5 per cent of GDP on defence.”
The Prime Minister said shortly after taking office that it was “cast iron”, which the Secretary of State has repeated today.
With President Trump’s election victory, there will inevitably be a greater focus on what more European NATO members can do to boost Europe’s own defence, but yesterday the Chief Secretary to the Treasury and this morning the Secretary of State himself were unable to say whether the Government would deliver on 2.5% in the current Parliament. In addition, yesterday The Sunday Times reported that Defence Equipment and Support in Abbey Wood has effectively been instructed to avoid any new procurement at all for the rest of this financial year.
Spending 2.5% is not an end in itself. The key reason that in April we set out a fully funded multi-year pathway to 2.5% was to enable the Ministry of Defence to procure, at pace and at scale, the munitions that we need to urgently replenish our stocks to warfighting levels. With the whole world wanting to buy more munitions, we cannot afford to delay any further.
I have key questions for the Secretary of State, because at the same time we are having this debate, there are a whole load of new burdens coming for the MOD which it will have to cover. In which financial year does he expect the share of GDP spent on defence to start rising significantly, and will he guarantee to hit 2.5% in this Parliament—yes or no? Not including existing programmes, is it true that there is a freeze on new procurement of defence equipment and support for the rest of this financial year? Will the MOD be 100% compensated by the Treasury for higher employer national insurance contributions and for the cost of increasing continuity of education allowance, and will service families be 100% compensated for the extra VAT on school fees? Penultimately, on Armistice Day can the Secretary of State absolutely rule out surviving spouses of service personnel being taxed on death in service benefits? Finally, on the Chagos islands, in the Department’s written answer to me it refused to say how much the MOD will contribute to renting back our own military base, so this is a very simple question: the Secretary of State will not tell us how much it is going to cost, but does he know how much it is going to cost?
Please remember that when I grant urgent questions, the time each person has is limited. It is two minutes for the main Opposition party and one minute for the other Opposition party.
On a point of order, Mr Speaker. You know how strongly the House feels about the Government’s decision on the Chagos islands. The Defence Secretary has made it very clear today that the Government know what the cost of that settlement will be to the Ministry of Defence. Many colleagues have repeatedly asked, through oral questions and written questions, what the cost will be. This is public money. Given that the Government refuse to tell us what the cost will be, can you advise us on how else we can probe to find out how much public money will be used?
The hon. Gentleman has certainly put that question on the record again, and I am sure the Secretary of State is listening very carefully. He may wish to respond—or perhaps not. I am sure the shadow Secretary of State will not give up at this stage and will find other ways to seek that information, which I am sure will be forthcoming at some point. I am sure he will continue to ask the question.
(2 months, 1 week ago)
Commons ChamberThank you, Mr Speaker. I associate all of us in my party with your comments about the late Alex Salmond.
The most important point about the SDR is that it must not be used as an excuse to delay increasing the defence budget to 2.5% of GDP. In September, in answers to written questions, the Department said that it would set out a path to spending 2.5% of GDP on defence “as soon as possible”, but last week, at the Dispatch Box, in his middle east statement, the Prime Minister said that the Government would go to 2.5% “in due course”. We all know that there is a massive difference between the two, so which is it?
Thousands of children of armed forces personnel face unaffordable increases to their school fees because of this Government’s ideological decision to charge VAT on education. That could have the perverse effect of forcing experienced personnel to quit the service of their country just when we should be seeking to maximise retention. Will the Minister therefore confirm that children of armed forces families will be exempt from the new VAT rise, and furthermore that that exemption will apply from January when the new tax kicks in?
(4 months, 4 weeks ago)
Commons ChamberMy right hon. Friend, who not only served on the Committee but was an Armed Forces Minister, makes an excellent point. There are those who argue that we should go beyond 2.5%; I would argue that 2.5% is still a significant jump for this country. We had a funded plan, and that 2.5%—crucially and critically, with the pathway we set out, which became an accumulation of significant additional billions of pounds for the MOD—enabled us to afford GCAP and stabilise that programme.
I want to make one crucial point about the uncrewed domain. To be frank, for the uncrewed side of the Navy, Army and Air Force, those programmes are not funded: hitherto, the funding has come primarily from support for Ukraine. That is entirely logical because, under the defence drone strategy, we were very clear that there is no point in the Army, for example, ordering large-scale drones now; it might order them to train with, but the technology is changing so fast. What we as a country need to build, as I set out in the drone strategy, is the ecosystem to develop those drones, and we are doing that.
I have always said—I said it during my statement on the integrated procurement model—that my most inspiring moment as Defence Procurement Minister was visiting a UK SME that was building a drone for use in Ukraine. It was a highly capable platform, but brilliantly, it was getting feedback and spiralling it—as we call it—the very next day. On GCAP, it should be a technology for the whole of defence—it should be a pan-defence technology of how we team with uncrewed systems, how the Navy fights with an uncrewed fleet above and below the surface, for the Army and of course for the Air Force.
I have two final points on military capability, as a couple of points have been floating around in the press. The first is that the Army is putting out its opposition to GCAP. I find that idea impossible to believe. Of course, if the Army wants to succeed, it needs the support of the Air Force and so on. That is why an integrated approach to procurement is so important, not single service competition. There has also been the point that we should choose between GCAP and AUKUS, as if, when the next war comes, the Russians will step into our dressing room and ask if we would like to bowl or bat: would we like to fight on land or sea—what is our preference? The fact is that we do not know where the threat will come from, but we know that it is growing, so we should support both GCAP and AUKUS, not least for the enormous economic benefit they bring.
You will be pleased to know, Mr Speaker, that that brings me to the last part of my speech, on the economic benefits of GCAP. There are those who say we should buy off the shelf. We would stress how, in a state of ever greater war readiness, it pays to have operational independence and sovereignty. In particular, investing in the great tradition of UK combat air offers huge economic gains for every part of the country.
In 2020, PricewaterhouseCoopers estimated that the Tempest programme alone would support an average of 20,000 jobs every year from 2026 until 2050. Those are well-paid jobs in every constituency up and down the country—including many in Lancashire, as you will know, Mr Speaker. Scrapping GCAP would hit our economy hard. Even delaying or deferring GCAP expenditure would undermine our brilliant aerospace industry, which was on display this past week at the Royal International Air Tattoo in Farnborough, and cast doubt over the vast sums of private investment that are waiting, from which hundreds of UK SMEs stand to benefit.
An interesting point was raised by the Leader of the Opposition when asking the Prime Minister about exports and discussions with the Kingdom of Saudi Arabia. It is an incredibly important point. I was clear that, in reforming procurement, we have to have exportability at the heart of it because otherwise industrial supply chains wither. It is as simple as that. The demand from this country is not big enough. This has been the French lesson for many years, which is why they have put so much effort into export, and we need to do the same—whether it is GCAP, or any other platforms or capability manufactured by the United Kingdom.
To undermine GCAP is to undermine our economy, our future war-fighting capability and relations with our closest international partners. The Government should instead embrace GCAP wholeheartedly and confirm that they stand by their previous position of steadfast support. Then they should commit to a clear timetable on 2.5%, so that we can turbocharge the programme by investing not only in the core platform, but in the associated technology of autonomous collaboration and a digital system of systems approach, enabling the mass and rapid absorption of battlespace data.
To conclude, the best way to win the next war is to deter it from happening in the first place. Part of our overall deterrence posture is to signal to our adversaries our preparedness to always be ready to out-compete their technology. How can we send that deterrent signal if we have such mixed messages on our largest conventional military programme? We support this statutory instrument, we support GCAP and we support the powerful gains it will give to the United Kingdom’s economic and military strength.
Order. Can I gently say that I welcome the very thorough response from the Opposition, but the shadow Minister did take twice as long as the Minister? I do have other speakers on his own side who also want to get in, so please just work to make sure we can get everybody in.
We now come to a maiden speech—I call Calvin Bailey.