Ministry of Defence: Expenditure
Lord Lancaster of Kimbolton Excerpts(3 months, 4 weeks ago)
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Lord Coaker (Lab)
Of course we should remain open to any capability that is necessary. The noble and gallant Lord makes a very important point. We are open to all these considerations and factors in the defence of Ukraine, but also in the wider security picture that we face across the globe. No doubt that will be something that the review takes forward. I would welcome the noble and gallant Lord’s contribution to that review, to make the very point that he has just made.
Lord Lancaster of Kimbolton (Con)
My Lords, I declare my interest as director of the Army Reserve. The Public Accounts Committee identified a black hole of some £16.9 billion in our capital programme. That sounds a lot, but over 10 years it is actually less than 5% of the programme and manageable. However, as night follows day, there will be deferrals or cancellations of capital projects within the MoD. Normally, it is the smaller, short-term projects that are deferred or cancelled, as opposed to larger, long-term projects. In order to meet the Chief of the General Staff’s aim of doubling the lethality of the British Army in the next three years, it is these very short-term, small projects that are required. When it comes to the balance of investments, will this desire be taken into account?
Lord Coaker (Lab)
I thank the noble Lord for his question and for all the work he does in his position outside this House. He makes an important point. For me, it is not whether it is a small capital project or a large capital project; the important point is how it contributes to the lethality of our forces and how it contributes to us defending not only our country but freedom and democracy across the world. Whether it is a small project, a medium-sized project or a large project, its utility should be decided on that basis. The noble Lord makes a very important point, and I will make sure it is taken into consideration.
King’s Speech
Lord Lancaster of Kimbolton Excerpts(3 months, 4 weeks ago)
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Lord Lancaster of Kimbolton (Con)
My Lords, I remind your Lordships’ House of my interests with the Ministry of Defence. What a pleasure it is to be able to follow the noble Lord, Lord Robertson. The greatest compliment I can give him is to tell him of the collective sigh of relief that went around the MoD when he was appointed, and the thought that there was a grown-up in charge of this review. Equally, I question whether we can continue to prioritise both NATO and the Asia-Pacific. If we are forced to make a choice, I hope that it is NATO, not least because of the potential change of government in the United States at the end of the year. I am sure that he will be the right man to make that unbiased decision.
I will say a few words on the SDR and perhaps look at it through the traditional grand strategy lens of ends, ways and means. I am delighted that it is threat-based. The noble and gallant Lord, Lord Peach, outlined the threats very eloquently, and I do not wish to repeat them. As an aside, I thank him for his call-out to an increased Army Reserve. I am delighted to report to your Lordships’ House that, during the last period, the Army Reserve did indeed increase in size, albeit very modestly.
Equally, I emphasise that, while we have woken the Russian bear, I am concerned that Russia is showing a degree of national resilience that I am not sure that we, the UK, could. It has very much put its economy on to a war footing, and we need to be very mindful of that. But what could and should we do? To me, we are a medium-sized MoD with a medium-sized budget. How do we get the most out of that budget?
To me, the answer is multidomain integration. The sign of any first-tier military is how it combines its domains. We have exquisite assets in land, air and sea, we lead the world in cyber, and we are developing on space. But operating in the joint space—where you combine those five domains together, rather like five strands of a rope—the strength is so much greater than the individual strands. We do that effectively, but we need to go one step further with multidomain integration.
That is easy to say, but what does it mean? To give a simplistic example, in the joint world a soldier on the front line may identify a target and then, through data or voice, call in an air strike or naval gunfire support or send it back to headquarters and have an artillery strike, and he may correct fire, and the target is eventually destroyed. With multidomain integration, the data that the sensors in the Ajax strike vehicle pick up is immediately shared with the F35 overhead, the Type 45 warship, or back to headquarters. Through artificial intelligence, the right asset to target that potential foe is identified, its threat is assessed as to where it should be in a priority, the strike is carried out, the fire is automatically corrected using a minimum amount of ammunition, and the whole process, rather than taking minutes, takes seconds. But it does not end there. The expenditure of ammunition is automatically sent back through the logistical train, initiating resupply, and back into the land industrial base. This is how we maximise our advantage.
On means, we focus on 2.5% but let us be clear: if we had 2.5% today, it would not solve our problems in the short term. For the next four years, we would still have a deficit in money in defence. From year five onwards, according to the Public Accounts Committee, we would probably then have headroom. But we continue to have principal challenges.
The first is nuclear: about 6% of our operational budget is taken up by it. We do not actually know how much the nuclear programme costs. We ring-fenced money for the Dreadnought submarines, but other aspects continue to grow. When the nuclear programme sneezes, the rest of defence catches a cold. I think the time has come when nuclear needs to be held outside the defence budget. I would rather have 2% without nuclear than 2.5% with it.
There has been much speculation about Tempest. I remind your Lordships’ House that we have signed a treaty on Tempest with Italy and Japan. How do we deal with that? The answer, of course, is that we need to go out and get more partners to join that programme so that we can temper the spending.
Finally, and very quickly, I pick up a point made earlier today by the noble and gallant Lord, Lord Stirrup, on revenue spending within the MoD. Revenue spending is the most vulnerable, yet it is the most important. If we do not have revenue to train, we cannot be a world-class military and cannot compete. While we do not know what the spending announcement of the pay rise for our servicemen will be, for every 1% it is £100 million. If we get, say, a 4% increase in spending, that is £400 million straight out of the revenue budget. We need to look carefully at how we balance capital and revenue spending within our defence budget.
Armed Forces: Land War Readiness
Lord Lancaster of Kimbolton Excerpts(6 months ago)
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The Earl of Minto (Con)
My Lords, I am sure I do not need to tell anybody in this House that defence is an active, changing situation, and we need to change to events and threats as we see them. As I said, we invest significantly in Armed Forces readiness and will continue to do so. The Royal Navy has 22 ships—now nearly 28 ships—on order. The RAF has greater lift capacity than at any time, and the British Army was deployed in 67 countries last year. While there is a lot to do, if we think about the international, multinational operations that we are engaged in—Prosperity Guardian, Shader, Kipion and Steadfast Defender, to name just a few—let alone delivering vital aid in Gaza, we should be rightly proud of all their efforts.
Lord Lancaster of Kimbolton (Con)
My Lords, I declare my interest as director of the Army Reserve. Neither the first nor third division can deploy as a division without large elements of the reserve, and it is a misnomer that all the Regular Army is at higher readiness than the reserve Army. There are even elements of the Army Reserve which are at higher readiness than parts of the Regular Army. Indeed, for Op Tosca in Cyprus, three of the last rotations of our peacekeeping mission have been delivered by the Army Reserve. With this in mind, will my noble friend welcome the fact that this year, for the first year, the Army Reserve budget is protected, meaning that it is not subject to in-year savings measures and enabling it to ensure that it can meet its readiness?
The Earl of Minto (Con)
My Lords, I thank my noble friend for making an extremely important point, particularly about the financing of the reserves. We should never forget that reserves are essential on and off the battlefield. It is all very well relying on the first echelon, but without the second and third echelons in place and working like clockwork, there will be trouble down the line. The value in which reserves are held is extremely high and I am delighted that they are so ready.
UK Armed Forces in Middle East
Lord Lancaster of Kimbolton Excerpts(6 months, 3 weeks ago)
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The Earl of Minto (Con)
My Lords, I certainly will and would. We are part of international coalitions and there is a certain level of sensitivity around precisely which states are involved in what. But I can assure the House, in all respects, that the level of support from various areas could not be higher.
Lord Lancaster of Kimbolton (Con)
My Lords, away from the valuable operations of the Royal Navy and Royal Air Force in the region, it is easy to overlook the regular tempo of land exercises with our allies there, which not only build strategic capabilities over time but act as a deterrent to our foes in the region. Despite the large increase in pending announced last week, there remain in-year saving challenges. These exercises, being uncommitted spend, are the first things to be cut. I simply ask my noble friend to look carefully at ensuring that, away from operations, these exercises continue.
The Earl of Minto (Con)
My noble friend makes an extremely good point. The prioritisation of all the activities that we are engaged in through the UK Armed Forces is extremely important. To be ready to war-fight and win is absolutely paramount; to train to achieve that is critical.
Defence Spending
Lord Lancaster of Kimbolton Excerpts(7 months ago)
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Lord Lancaster of Kimbolton (Con)
My Lords, I remind your Lordships’ House of my specific interest as a member of the executive committee of the Army Board. I welcome this announcement. It is a significant amount of money and I commend the Government. However, my noble friend will forgive me if I judge success not by financial input but by what capabilities this money will deliver and, crucially, when. Our Armed Forces have been hollowed out, principally by gifting to Ukraine, so can he reassure me that some of this money is not just for new capabilities but for replacing existing capabilities that have been gifted? Finally, if there is one enemy in all this it is the Treasury. In my humble experience, it is all very well having a commitment of money to defence, but unless we get prompt Treasury approvals on time all this capability will be delayed. Can my noble friend simply reassure me that appropriate conversations have been had with the Treasury?
The Earl of Minto (Con)
My Lords, I thank my noble friend for that question. On the Treasury, the Chancellor has absolutely been involved throughout this entire conversation and is fully supportive, as is the Prime Minister, of exactly what we are trying to achieve. On gifting and the replenishment of munitions and stocks, everything that we have gifted, including in the announcement this week, is within its sell-by date but is no longer really necessary. Replacements are coming in of new, modern equipment. The Army is perfectly happy to gift this to the Ukrainian effort.
LGBT Veterans: Financial Redress
Lord Lancaster of Kimbolton Excerpts(8 months ago)
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The Earl of Minto (Con)
My Lords, we come back to grammar. We are all on the same page on this. Everybody is in full agreement, but we have to make certain that it is done fairly, that everybody who has the right opportunity to apply gets that opportunity, and that the compensation and other restorative measures are available to everybody concerned at the appropriate time.
Lord Lancaster of Kimbolton (Con)
My Lords, I remind your Lordships’ House of my interest as a serving member of the Armed Forces. It is imperative that our Armed Forces are representative of the society they seek to protect. While there has been significant progress in recent years when it comes to the recruitment of women and ethnic minorities into the Armed Forces, much work still needs to be done. The Royal Air Force has been an exemplar in this area. So can my noble friend simply reassure your Lordships’ House that this remains a priority for His Majesty’s Government?
The Earl of Minto (Con)
My Lords, I can do no more than assure the House that it is indeed an absolute priority for the Government.
Red Sea Telecommunication Cables
Lord Lancaster of Kimbolton Excerpts(8 months, 1 week ago)
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The Earl of Minto (Con)
My Lords, our naval assets are substantial. In fact, there are new support ships coming in that have the specific capability of underwater surveillance, so it is well on the way.
Lord Lancaster of Kimbolton (Con)
My Lords, I will add some specifics to that. RFA “Proteus” is our multi-role oceanographic survey ship. Interestingly, its purchase was announced by Ben Wallace in November 2022 and it was in service less than one year later, which is really quite impressive. Will my noble friend say what the lessons of the speed of that procurement are and whether it is our intention to purchase any further vessels in future?
The Earl of Minto (Con)
My Lords, the speed of that acquisition is a fantastic example of how when procurement goes right, the agility and ability to acquire, equip and train crews to man these sorts of vehicles is comfortably within our capability. I do not know precisely when the next ship is due to come, and I will write to my noble friend with that information.
Situation in the Red Sea
Lord Lancaster of Kimbolton Excerpts(8 months, 3 weeks ago)
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The Earl of Minto (Con)
My Lords, the noble Lord makes an extremely good point. Yes, there is quite some activity, but I am sure I need not point out to your Lordships that the Houthis pay scant regard to anything that the United Nations says.
Lord Lancaster of Kimbolton (Con)
My Lords, I declare my interest as a serving member of the Armed Forces. The noble Lord, Lord West, makes an interesting point, but it also exposes a slightly uncomfortable truth: we are using multi-million-pound missiles to defeat drones which are a fraction of the cost. This is ultimately unsustainable. What is the plan? Are we going to learn lessons from Ukraine, where there is a rather more layered approach to defeating drones? Ultimately, are we going to find some other way of defeating these weapon systems?
The Earl of Minto (Con)
I admit that I look at this from a slightly different perspective. We are launching a missile in self-defence at an incoming attack vehicle, which is attempting to hit something behind us, which is probably worth half a billion pounds and well in excess of 100 lives. Having moved into position, there is no question that we are doing absolutely the right thing in deterring, degrading and reducing the Houthis’ effectiveness. On lessons from Ukraine, I assure the House that there is an enormous amount of activity going on in precisely that area, about what action can be taken to update and diversify all the weaponry at our disposal.
Royal Navy: Aircraft Carriers
Lord Lancaster of Kimbolton Excerpts(9 months, 1 week ago)
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The Earl of Minto (Con)
My Lords, that is precisely the question I asked earlier in a briefing. I am assured that the carrier which has left to join Steadfast Defender will certainly fulfil its commitments, and that the “Queen Elizabeth” is on her way to dry dock to find out exactly what is wrong.
Lord Lancaster of Kimbolton (Con)
My Lords, I am a simple soldier, but I do not underestimate the complexities of trying to get carriers to sea, not least marrying the personnel issues with the mechanical. My concern, though, is a slightly different question. Does my noble friend feel that the MoD’s attitude to risk is currently in balance? From my experience over a number of years now, our attitude to risk seems to be that we are becoming ever more averse to it. Of course if a propeller is not working, a warship cannot go to sea, but it seems that ever smaller incidents prevent principled actions happening because we are becoming so risk-averse when many of these risks could be mitigated and ships could get to sea.
The Earl of Minto (Con)
My noble friend raises an extremely interesting point. As I think many noble Lords know, I have come in from the private sector relatively recently, where the concept of risk is considered completely differently from how it is within government, and certainly within the Ministry of Defence. I fully understand that, when you are dealing with people’s lives, you want to minimise the risk as far as you possibly can, but there comes a point where you have to get the risk-return in balance. I am not certain that we have got that right in government yet.
Global Combat Air Programme Treaty
Lord Lancaster of Kimbolton Excerpts(11 months, 1 week ago)
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Lord Lancaster of Kimbolton (Con)
My Lords, I declare my interests as a serving member of the Armed Forces and as the Prime Minister’s defence and security advocate and add my congratulations to the Government on the signing of this very important treaty, hot on the heels of AUKUS. These together underline the United Kingdom as a partner of choice in the international defence community.
I have two questions for my noble friend, built on the latter part of his previous answer. First, the key cornerstone members of the treaty are, obviously, the UK, Italy and Japan, but is the door now closed for other founder members of this treaty? I cannot help but feel that with potential competition in Europe, the more founder members that we buy in from the start, the greater the security of this programme and decreasing costs for the UK going forward.
My second point concerns the industrial base. In the past, successive Governments have allowed various parts of our industrial base to atrophy. This is in part because, all too often, we have procured the exquisite in the United Kingdom, building, for example, ships such as the Type 45—undoubtedly the best in the world but simply unaffordable for other nations. The key to ensuring that the industrial base continues for many years to come is, as the Minister has hinted, ensuring that this platform is exportable. Sometimes, exportable variants do not have the same kit that we may want for ourselves, but the whole point is that we need open architecture so that variants of this platform can be exported, thereby ensuring the longevity of both the platform and the UK industrial base.
The Earl of Minto (Con)
My noble friend makes some good points. My understanding is that, as the treaty is now signed, the founder members are in effect locked in—although there is, I believe, a bit of flexibility. There is no question that this platform is being built with the view that it will be of interest to allies across the globe. As I am sure we all know, 85% of defence exports are combat aircraft, so it is extremely important that this is a successful and flexible platform that appeals to others. There may be a worry about us trying to be all things to all men. I do not believe that that is the case; I believe that the intention of the three equal partners is to ensure that the platform is definitely fit for purpose and will definitely be of interest to allied countries.
My noble friend made a good and salient point about the industrial base in the UK. I imagine that there will be stiff competition in deciding where the GIGO will be located because it will engender a lot of inward investment; some 1,000 people in various organisations have already been taken on to work on it. Obviously, a lot of new technology is involved, rather than older technology. Again, it is about this country having been chosen for the headquarters, which suggests a certain level of commitment to our industrial strength.