Nuclear Deterrent

Lord Marlesford Excerpts

Wednesday 18th May 2011 Lords Chamber

[Lord Astor of Hever]

My Lords, I agree with the noble Lord, Lord Davies, on both issues. We require a reasonable margin of error, so to make continuous at-sea deterrence work we need four boats. Obviously this is an issue that the review will look at but, as I said earlier, I am confident that this will be what is agreed.

[Lord Marlesford]

My Lords, can my noble friend help me to understand the cost figures he gave? He quoted the figures from the 2006 White Paper as £11 billion to £14 billion. He said that those figures, quoted at 2006 prices, do not account for inflation and that the equivalent today is £20 billion to £25 billion at outturn. That is an increase of 78 to 82 per cent in cash terms. The inflation rate from January 2006 up to May 2011 is 22 per cent. How does the rate of 22 per cent tie in with the 80 per cent increase in the figures he has given?

[Lord Astor of Hever]

My Lords, the figures of £11 billion to £14 billion are quotations at 2006-07 prices, and therefore do not include inflation. This equates to £20 billion to £25 billion at outturn prices. It is a very complicated issue and I would be happy to write to my noble friend in order to set it out clearly.