Integrated Review

Lord Lexden Excerpts

Monday 23rd November 2020 Lords Chamber

[The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)]

I thank the noble Baroness and the noble Lord for their comments. I will start by talking briefly about the integrated review, as they both asked some questions about it. We will conclude and publish the full integrated review early next year. Both noble Lords asked about the delay and, as they rightly said, the review was announced in February; it was then paused in April, due to Covid, and restarted in June. So we did have a delay in the review and it will now conclude early next year. However, we are in the final phases of it, aligning our ambition with our resources. The defence settlement outlines the first conclusions of the review, which will put us on the front foot as we equip our Armed Forces for the threats of today and tomorrow, while ensuring that long-term defence projects have certainty and are not put on hold.

When the full integrated review concludes early next year, it will set out our overarching strategy for national security and foreign policy, including defence, diplomacy, development and national resilience. It will set the direction for more detailed strategies and departmental activity in the coming years. It will also set out the way in which the UK will be a problem-solving and burden-sharing nation, and a strong direction for recovery from Covid at home and overseas. That issue was touched on at the G20 virtual summit held over the weekend, when all the leaders discussed it.

The noble Baroness, Lady Smith, rightly talked about making sure that all parties were engaged. I can certainly reassure her that this is a cross-Whitehall process, allowing all to contribute expertise and analysis—not only within Whitehall but with partners, including NATO. Our closest allies have been involved during the process and will continue to be so. She also asked about the defence review, which is ongoing. Further details will be updated in due course.

Both noble Lords asked about spending. This is the only multiyear settlement for any government department that will be announced this year. I can reassure them that it has been fully costed, building on extensive work by the Treasury and MoD to understand what future capabilities will cost and how much can be delivered through efficiencies.

The noble Baroness talked about jobs, quite rightly. We expect this settlement to create up to 10,000 jobs each year across the UK, and as many as two-thirds more in the supply chain. Both noble Lords will be aware that in 2018-19, the MoD supported over 400,000 jobs, while defence spent £19.2 billion with UK industry last year. This new settlement will support further jobs in a whole array of areas: in shipbuilding, for instance, and obviously in emerging technologies—in space and in the building of the Tempest. We hope that this spending will create jobs in a range of ways. Part of the investment will also be looking to upskill and make sure that we can provide jobs for people around the whole of the United Kingdom—Scotland obviously being key to some of the developments that we are talking about. Hopefully this will be a UK-wide investment in jobs.

Both noble Lords rightly asked about international development. We are of course extremely proud of our work there. We remain committed to supporting international development and helping the world’s poorest people. Of course, our Armed Forces are also a humanitarian force for good, coming to the aid of the most vulnerable following natural disasters, bringing stability to countries marred by conflict with peacekeeping missions and bolstering efforts to tackle Covid in the developing world. Both noble Lords will both know that the spending review will be announced on Wednesday; funding will be announced then.

The noble Lord, Lord Newby, asked about the Army. I can assure him that the UK will continue to have full-spectrum Armed Forces, including an armoured capability. But we also need to ensure that we focus on how the Army is equipped and what we want it to do. This settlement will ensure that our soldiers have some of the best equipment in the world, so that they can continue to do their fantastic job.

Both noble Lords talked about global leadership. They are absolutely right, which is why this settlement raises our defence spending to 2.2% of GDP. That is more in cash terms than any other European ally or NATO member, other than the United States. We will continue to lead internationally. Next year is a critical year for our international leadership, as we have the G7 presidency, COP 26 and the 75th anniversary of the first UNGA meeting in London. We will continue to play our part on the global stage, and this settlement will help us to do that.

[The Deputy Speaker (Lord Lexden) (Con)]

We now come to the 20 minutes allocated for Back-Bench questions. I ask that questions and answers be brief, so that the maximum number of speakers can be called.