Major Defence Contracts

Lord Harlech Excerpts

Monday 3rd February 2025 Lords Chamber

Asked by

[Lord Harlech]

To ask His Majesty’s Government what assessment they have made of the economic impact of uncertainty surrounding major defence contracts.

[Lord Harlech (Con)]

My Lords, I beg leave to ask the Question in my name on the Order Paper and declare my interest as a serving Army Reserve officer.

[The Minister of State, Ministry of Defence (Lord Coaker) (Lab)]

My Lords, the Ministry of Defence recognises the importance of certainty in the MoD’s demand signal for industry. Making the right procurement decisions is a key enabler for improving effective equipment delivery to the Armed Forces and ensuring greater value for money for the taxpayer. This Government are determined to establish long-term partnerships between business and government, promoting innovation and improved resilience.

[Lord Harlech (Con)]

I thank the Minister for his response. Poland is now spending 4% of GDP on defence. Finland has a wartime strength of 280,000 and can call on a reserve of 870,000 troops. NATO allies are waking up to the fact that we must take defence spending seriously. Will the Minister do everything in his power to ensure that the Treasury understands why we must spend not 2.5% but 3.5% as a minimum on defence and make that change before the spending review?

[Lord Coaker (Lab)]

I thank the noble Lord for his Question and, as I always do, acknowledge his service to our country as a reservist. On defence spending, he will know the Government’s policy. In the spring the Government will set out a pathway to 2.5%. He will also be pleased to know that the Government have not waited for that; we have already increased defence spending by £3 billion in the next financial year. We are on a pathway to increased spending on defence.

Russian Maritime Activity and UK Response

Lord Harlech Excerpts

Tuesday 28th January 2025 Lords Chamber

[Lord Coaker (Lab)]

I understand the point the noble Lord is making with respect to Bahrain, but let me say this. The UK acts wherever it needs to to protect its interests. I often make the point about the indivisibility of conflict. I went to Vietnam recently. Vietnam is concerned about Ukraine, because it has brought Russia and China closer together in a way that it never expected. I am proud of the fact that, notwithstanding Bahrain, later this year, we will lead a carrier strike group out into the Indo-Pacific to demonstrate that the law of the sea, the international rules-based order, is something that is important to us. There are numerous countries, both in Europe and in the Far East, including our allies Australia and New Zealand, that will stand with us in delivering that capability. Defending the rule of law in those areas is important. You cannot divide peace and security in one part of the world from peace and security in another, and I for one am pleased that the carrier strike group is going out into the Indo-Pacific later this year.

[Lord Harlech (Con)]

My Lords, I declare an interest as a serving Army Reserve officer and pay tribute to the Minister for the fulsome and frank responses which he always gives when defence questions come up. In his earlier remarks, he mentioned AUKUS. That, along with the Tempest programme, are two key flagship defence procurement projects. The US Congress has recently raised concerns about the US side of the deal and that their shipyards are not currently where they need to be to start producing the boats. We have had warm messages of support for both projects from the Government, which are welcome, but actual project updates are thin on the ground, so, perhaps not now, could the Minister commit to updating the House that both projects are where they need to be?

[Lord Coaker (Lab)]

I certainly can do. First, I again pay tribute to the service that the noble Lord demonstrates through his activity in the reserves—it would be wrong not to do that.

I will deal with the projects one by one. AUKUS is a phenomenal project. The Government have just announced £9 billion of investment in Rolls-Royce to deliver the propulsion units for the nuclear-powered submarines. That relationship between the US, the UK and Australia is fundamental to the peace and security of the globe as we go forward. As far as we are concerned, pillar 1 is moving forward at pace. Issues may well arise with a project such as AUKUS, but they will be dealt with as necessary, and the AUKUS project moves at pace.

The pillar 2 aspects of that—the technology and development of other capabilities—are also moving along. Discussions are taking place about whether we move beyond the initial three countries to involve other countries. So, as an update to the noble Lord, I say that AUKUS is moving forward at pace.

On GCAP, which noble Lords know is the relationship between ourselves, Japan and Italy that aims to develop a sixth-generation fighter, I can say that that too is moving. Various treaties have been put in place and various commitments have been made to it. We will see a sixth-generation fighter produced by those three nations, which again will contribute to the defence and security of the globe.

Both those updates are not good news stories in terms of gloating and saying what a wonderful thing this is; but it is good to say—notwithstanding the noble Baroness’s challenge about money—that with both AUKUS and GCAP we have capabilities that are being developed that will secure our own country and alliances and enable us to stand up in the future for peace and security in Europe and beyond. As such, we should celebrate both of them.

Defence: 2.5% GDP Spending Commitment

Lord Harlech Excerpts

Tuesday 17th December 2024 Lords Chamber

[Lord Coaker (Lab)]

The noble and gallant Lord, Lord Craig, makes the point about the additional money that he and other noble Lords believe is required. The Government’s commitment is to set a pathway to 2.5%. I remind the noble and gallant Lord that, on top of the money we have already provided for next year, we have an additional £3 billion in the Budget next year. We are setting a pathway to 2.5%. That is why the Government recognise the need to spend more on defence and security, and that is what we will do.

[Lord Harlech (Con)]

My Lords, I declare an interest as a serving Army Reserve officer. Army cadet forces are vital to social mobility and community cohesion. I implore the Minister to speak with colleagues in the Department for Education about reversing the 50% cuts to the Army cadet force budget.

[Lord Coaker (Lab)]

First, I congratulate the noble Lord on his service and all that he has done. He makes a good point about the importance of the cadet service. We all recognise the importance of cadets and their valuable contribution to social mobility, social cohesion and the rest. Certainly, I will reflect on the importance of that and see where we go to in discussions with government colleagues.

Defence Policy: Deterrence

Lord Harlech Excerpts

Thursday 31st October 2024 Grand Committee

[Lord Harlech (Con)]

My Lords, it is a pleasure to follow the noble and gallant Lord, Lord Stirrup. I declare my interests as a serving Army Reserve officer and a member of the APPG for Climate, Nature and Security. I congratulate my noble friend Lord Trefgarne on securing this important and timely debate. As noble Lords have already alluded to, deterrence is a broad subject, so I shall focus my remarks on the High North.

Due to climate change, natural resources and shifting geopolitical interests, the Arctic High North region has gained significant strategic importance for the United Kingdom. As the region warms, the melting sea-ice creates new opportunities and challenges, establishing the Arctic as a hot zone of environmental degradation, international competition and heightened insecurity. Opening new sea routes makes previously inaccessible resources such as oil, gas and minerals available, transforming the Arctic into a theatre of contest.

The Arctic region is home to critical shipping routes, such as the Northern Sea Route, which are becoming more viable due to melting ice. The NSR runs along Russia’s Arctic coast, providing a shortened connection between Europe and Asia. These routes could shorten global shipping times by nearly 40% and bypass traditional choke points such as the Suez Canal, offering significant economic advantages.

The region contains vast untapped natural resource reserves, including oil, gas and minerals. Control over these resources has become a geopolitical priority for nations with Arctic interests, including Russia, the United States and China, with China self-identifying, despite geographical terms, as a near-Arctic state. The Arctic’s proximity to critical defence zones makes it an area of military interest, particularly nuclear deterrence, early-warning radar systems and missile defence installations. In short, Arctic militarisation is amplifying strategic competition.

Russia has significantly ramped up its military presence in the Arctic, reopening old Soviet bases, building new ones and deploying advanced military capabilities, including nuclear-powered submarines and long-range missiles. The Arctic Trefoil base on Franz Josef Land is one of the most advanced installations, designed to operate all year round in extreme Arctic conditions, equipped with advanced radars, missile systems and infrastructure to support hundreds of personnel.

Russia views the Arctic as vital to its national security and economic future—Arctic oil and gas account for 20% of Russia’s GDP—and its activities there have heightened regional tensions, necessitating a strategic response from NATO and its allies. Russia has deployed sophisticated air defence systems such as the S-400 and Pantsir-S1 to protect its northern territories. These systems can intercept aircraft and missiles at long ranges, providing a protective shield over key Arctic installations and energy infrastructure. Russia has also deployed Bastion coastal missile defence systems along its Arctic coastline. These systems are designed to defend against naval incursions, allowing Russia to control access to the NSR and deter foreign naval forces from operating in the region. Russia frequently conducts large-scale exercises involving thousands of troops, warships, aircraft and submarines.

Deterrence in the Arctic will involve a combination of military preparedness, advanced technology and diplomatic efforts. For the UK, it is vital to maintain a credible deterrent by having the capability to project power in the High North, particularly naval and air power, through all-domain awareness and access considerations for airfields and port infrastructure. Can the Minister say what the United Kingdom is doing to secure supply chains and enhance crisis management capabilities in this region?

To conclude, the UK should focus on deterring aggression, mainly from Russia, and ensuring the stability of crucial Arctic waterways. Through NATO co-operation, military preparedness, and a strong naval presence, the UK can be positioned to safeguard its interests and contribute to the broader defence of the Arctic.