Defence: 2.5% GDP Spending Commitment

Lord Houghton of Richmond Excerpts

Tuesday 17th December 2024 Lords Chamber

[Lord Coaker (Lab)]

I thank the noble Baroness for her question. We have been very clear about NATO. Irrespective of the outcome of the American presidential election, European countries would have had to spend more on defence. As a first step towards that, all NATO countries need to meet the 2% target, which 23 out of 32 currently do. Our next step is to reach 2.5% and to set a pathway towards that. That will result in billions of pounds of this country’s money, as well as multi-billions of pounds across Europe, being spent on defence. That is the first step we need to take.

[Lord Houghton of Richmond (CB)]

My Lords, arguably, one of the most difficult tasks of government is to determine the level of expenditure and therefore capability needed to reduce external threats to the country to an acceptable level of risk or tolerance. Therefore, how can it be right or logical to predetermine that 2.5% of GDP is the appropriate level of expenditure needed to achieve tolerable security? Does the Minister not agree that it is more sensible to remain open-minded as to what the level of resources required will be until after the SDSR has reported and the true risks to the nation are better understood?

[Lord Coaker (Lab)]

I thank the noble and gallant Lord his question. He will know that one of the parameters of my noble friend Lord Robertson’s defence review is to look at the threats and at the capabilities needed within the envelope of 2.5%. Any country would have to determine what it believes it can afford and is necessary. The defence review will come forward with the threat assessment, and then it will be for the Government to determine, with the defence panel, how we meet those threats going forward.