Defence and Security

Lord Lancaster of Kimbolton Excerpts

Wednesday 26th February 2025 Lords Chamber

[Baroness Smith of Basildon (Lab)]

I thank my noble friend; his experience and powerful words are to be listened to. I made the point in an earlier answer that diplomacy, development and defence have to be balanced, and there is a rebalancing here, but we retain that commitment to return to spending 0.7% on ODA. But there is also the point, which my noble friend made, about how that money is spent and used to affect fundamentally those three areas of diplomacy, development and defence. That is really important, which is why issues such as procurement and the effectiveness of the money must be looked at, as must our relationships with other countries and working in partnership with other countries. As I have said and can only repeat, there is a generational shift today in how we look at these issues going forward.

[Lord Lancaster of Kimbolton (Con)]

My Lords, I declare my interest as a member of the Army Board. I welcome the rise to 2.5%; it goes some way to delivering the means that the noble Lord, Lord Robertson, needs to balance the ends and ways in the SDR. However, the aspiration to go to 3% after 2030 in the next Parliament is a tacit acceptance that it is simply not enough at the moment. It is no secret that, over the next two years, there will be significant financial pressures on defence, meaning that we will have to defer or cancel capabilities and defer capital programmes. This year, we have already seen announcements from the Government over the scrapping of HMS “Bulwark” and “Albion”, as well as the withdrawal of the Watchkeeper drone programme from the Army. Given that we have identified where this money is coming from—rightly or wrongly, it is coming from the aid budget—I simply ask: why are we waiting until 2027? Why are we not delivering it now?

[Baroness Smith of Basildon (Lab)]

The comments and response that I gave to the other Baroness Smith—the noble Baroness, Lady Smith of Newnham—highlights part of this issue: you cannot just turn on the tap and spend the money. You work up to how it is going to be spent, looking at supply chains and procurement. We will be very much informed by the strategic defence review in terms of how this money is spent.