Defence Funding

Lord Houghton of Richmond Excerpts

Thursday 16th May 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

The noble Lord seems to imply that this is a timing issue. The Government have heard all the messages coming from various quarters about the urgency and the threats we face. We do understand them, but the funds we are now going to put into the system are timed such that they can be most effective. For example, we will be spending on firing up the UK industrial base, but that cannot happen overnight. Our defence companies need multiyear certainty, which, of course, we get from the £10 billion commitment to a new munitions strategy, for example. Again, that does not happen overnight. We are content that the timing is right. As I say, we do not intend to issue defence bonds.

[Lord Houghton of Richmond (CB)]

My Lords, now that I have heard about the Minister’s initiative, I am less personally concerned about the scale and esoteric source of the defence uplift. Like many, my prime emotion is relief, not jubilation. My concern is that the uplift is well spent. On behalf of government, can the Minister reassure the House that the priorities for the uplift will be keeping Ukraine in the fight this year and then re-establishing the credibility of conventional deterrence in Europe?

[Baroness Vere of Norbiton (Con)]

I can absolutely give that reassurance. In addition to firing up the UK industrial base and the £10 billion on the new munitions strategy, the third key area that the additional funds will be spent on is guaranteeing for as long as it takes support for Ukraine. Obviously, that will build on the billions of pounds in military support we have already committed to Ukraine, as well as the extra £0.5 billion announced by the Prime Minister alongside the funding uplift.