Defence Spending
Lord Mountevans Excerpts(3 weeks ago)
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Lord Mountevans (CB)
My Lords, I congratulate the noble Viscount, Lord Trenchard, on securing this important and timely debate. The Chancellor’s announcement yesterday in the Budget of an additional £2.9 billion for the Armed Forces, for all that it is most welcome, does not represent an adequate investment in our forces, their people and their equipment. The additional payments that seem to have become a feature of recent defence financing represent sticking plasters rather than a serious attempt to bring the forces to the level that is required in the current international and geopolitical condition.
Of course we all realise and welcome that the much respected noble Lord, Lord Robertson of Port Ellen, is currently leading the strategic defence review, but my concern is that cost will be the key decider of how much money and resource is allocated, like small boys laying out their pocket money on the shop counter to see what sweets they can afford. Money is tight at this time, but the nation and especially the Government need to rethink priorities. With a changing world order and greatly increased threats, we desperately need to reprioritise. Defence is a long-term issue, particularly in the fast-changing world that we inhabit. It is simply not possible to make up lost ground over a short period. We are seeing that now, following— I regret to say—the neglect of the Armed Forces and our defences since the so-called peace dividend following the end of the Cold War. We and the democracies in general took our eye off the ball. We now have seriously and rapidly to address our weaknesses. Most other NATO countries are doing this.
I strongly recommend an increase to 3% of national income to be allocated to defence, as proposed by the noble Lord, Lord Bilimoria, and the famous Chief of the Defence Staff from the RAF. The vast majority of our countrymen wish to be a force for good, to be able to defend the nation and to play our full part in NATO as well as, on occasion, further afield. But the Secretary of State recently admitted on a Politico podcast that the Armed Forces are not ready to fight in a war and must do more to act as a deterrent against future aggression. He added that the forces would need to become more effective if the UK had to go to war.
It is not just for our Armed Forces to try harder and work smarter. There is a chronic need for resourcing adequately. For example, the defence-industrial base needs consistent government policy and time, due to the fact that the base has been allowed to shrink so profoundly over recent decades. It requires time for the base to be expanded, and then outputs will be swifter and more lethal.
Noble Lords will be aware of the questions around American support for NATO, especially if the Republican candidate were to succeed in the US presidential election next week. More generally, it has to be faced that attention in the United States is turning towards the Indo-Pacific. Europe will be expected to take greater responsibility for its own defence.
More widely, if the US is to continue to regard the UK as a key ally, we must maintain the fabric and capabilities of our Armed Forces. If not, they will regard us differently, as having less value as an ally. Having left the EU, Britain has to reinvent itself and find a new role. The alternative is that we be regarded as a small country facing many challenges. It is important that we remain a strong contributor to the rules-based order and world peace.
Strong and effective Armed Forces are an arm of foreign policy and an asset to the UK as we shape our new role in the world post Brexit. The success of the Joint Expeditionary Force is an excellent example of where our Armed Forces can play a highly positive role. The JEF can be regarded as essentially a British initiative. The Swedes and the Finns found that they work well with other JEF participants—all NATO members, of course. The equipment was compatible, and the people liked and trusted each other. A good chemistry had been established so that, when Putin commenced his illegal war on Ukraine, generating great alarm in the Baltic, it felt natural for these two highly respected nations, Sweden and Finland, to join NATO.
The UK is also of course a key participant in the AUKUS deal. UK defence has played a role in strengthening peace prospects in the Indo-Pacific. I believe we can be very hopeful that this important co-operation project will give courage to south-east Asian and other Indo-Pacific nations that they can be part of a response to a bullying China. The GCAP agreement is similarly a positive development in alerting those facing challenge that we recognise their situation.
Some 40% of Russian state expenditure is now on the military. Should Russia be successful in Ukraine, many analysts feel that Putin will be emboldened to embark on further military action in Europe. As noted by the noble Lord, Lord Bilimoria, it is significant that prominent among NATO states with the highest proportion of national income spent on defence are Baltic countries bordering on Russia. If Britain continues to respond to the risks and challenges inadequately, it would all come back to haunt us.
There is never enough money for welfare payments. Would the Minister like to comment?
Strategic Defence Review
Lord Mountevans Excerpts(1 month, 1 week ago)
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Lord Mountevans (CB)
My Lords, we all agree that the noble Lord, Lord Robertson of Port Ellen, is a highly suitable chairman for this review. He is also a man with knowledge of commercial shipping and strategic industry, so I begin on a wider note.
Yesterday, I attended a major commercial shipping conference organised by the UK Chamber of Shipping at the Westminster conference centre. It is significant to report that among commercial shipping people there is, of course, much heightened awareness of the threat internationally to ships, crews and cargoes. British fleets, and other what might be called rules-based order fleets, are increasingly aware of the extent to which they may have to rely on the potential protection and general support of the Royal Navy and associated NATO fleets, as well as the Royal Navy’s partners around the world. I believe that it is important that this sentiment is reported back to your Lordships’ House, particularly in this debate.
International trade is the lifeblood of the UK economy and nation. There is great appreciation for the men and women of the Royal Navy and all that they do to protect trade and what we commonly refer to as the rules-based order. There is likely to be an increasing need for this support, but my principal intention in speaking is to highlight the vulnerabilities and risks that exist for the United Kingdom’s economy in what might be termed coastal infrastructure.
The UK’s coastline exceeds 7,700 miles and embraces some 120 ports. These are vital for the supply of food, medicines, raw materials and more to the nation, as well as for facilitating exports. However, the nation’s exclusive economic zone—an area of almost 300,000 square miles—contains a hotchpotch of marine infra- structure, which is also critical to the nation. I begin with the underwater cables that connect the City of London and the nation’s financial services with New York. This is Britain’s most successful industry and vital to the economy. The volume of daily data and digital traffic is too great to be communicated via satellite, so it is carried by around 60 undersea cables. If only a few of these were damaged, the impact would be enormous: around $10 trillion of business a day is reckoned to be transacted through them.
All this represents a profound vulnerability at a time of increasing and overt actions by malign actors, some of them state actors, including Russia. There is growing awareness of this vulnerability in the City of London, where I served as Lord Mayor in 2016. After a long career in shipping in the City, I now regard myself as more of a West End boy, contributing where I can in your Lordships’ House. As may be imagined, however, I retain close connection with the City of London Corporation and certain sectors. There is growing awareness in certain quarters of the risks that are posed to the nation’s marine infrastructure. In this House, we very properly declare our interests. Perhaps I can say at this stage that a group of senior City practitioners and others with highly relevant experience and expertise are forming a group to look at these and other vulnerabilities to ensure that they are noted, understood and, wherever possible, addressed. I have been invited to chair the group, which I am honoured to do unless I can find some other unfortunate.
The underwater cables are just a part of this highly developed and extensive network of infrastructure systems that benefit and protect our nation. Energy is critical for the nation’s success and security. There is the web of pipelines that connect oil and gas fields to the mainland, and there are gas and electricity interconnectors that link the UK with other countries, notably Norway, Belgium, the Netherlands, France and Denmark. Most visibly, there is the growing number of offshore wind turbines around our coasts. They are much in evidence already, but my understanding is that what can be seen now is a mere 10% of what will be in place when the current programme of installations is complete.
At a time when a major land war is being fought in Europe and there is increasing grey zone activity, including from state actors, it is vital that this critical and extensive marine infrastructure is protected in all ways possible. The nation’s resilience becomes ever more important, not least given the moves to just-in-time delivery of so many materials and products. It is valid to ask which entities have ownership and control of the assets and infrastructure and have responsibility for their maintenance and servicing. The cables are fundamental to the operation of the City of London and one of the world’s leading financial centres, while the energy-related assets are equally fundamental to the functioning of industry, the economy and society. Can the noble Lord, Lord Robertson, confirm that this vital national infrastructure, with all the vulnerabilities that it carries, including, but not limited to, physical damage and cyberattack, is prominent in his priorities?
We should not forget that the UK’s EEZ, if the Crown dependencies and overseas territories are included, amounts to some 2.62 million square miles. Can the noble Lord confirm that they will also be within the scope of the review?
I turn to other key considerations. We need to develop and grow a skilled labour supply capable of staffing our industries and energy base, and indeed our shipyards and Armed Forces. There is a need to go beyond the simple contract price when awarding government contracts and look instead at whole-of-life costs and the multiplier impacts of contracts awarded in the UK. Defence is everybody’s business. As the noble Lord, Lord Alderdice, noted earlier, we require a national effort on this and need to develop a strategy for engaging with the general public.