Defence Spending

Debate between Lord Robertson of Port Ellen and Earl of Minto

Thursday 25th April 2024 Lords Chamber

[The Earl of Minto (Con)]

My Lords, the financial detail is quite complicated and I think it is better if we write and explain how the figures are built up.

It is clearly an ask for the British public. The cake is finite, as I have said before, and defence needs more. It is not an inconsiderable amount of money that we are increasing the defence budget by, and there is a question of how much money you can spend over time. It is rather like building a house, in that you cannot spend it all at once; you have to build up. If you look at where the investment focus is within the next few years, you find that, first, it is on firing up the UK industrial base, including £10 billion for a new munitions strategy. That is extremely important. Secondly, it is on ensuring that our Armed Forces benefit from the very latest technology, through the DIA. Thirdly, it is on guaranteeing long-term support for Ukraine; if we do not do that, it is just going to become more and more expensive. As the Secretary-General said the other day, this is the cheapest time to defeat the Russians. Fourthly, it is on ensuring that expenditure is effective through radical procurement reform, which I have already covered.

[Lord Robertson of Port Ellen (Lab)]

My Lords, all of us will welcome any increase to defence expenditure at a time of maximum turmoil and trouble in the world. There is much in this Statement which is to be welcomed, not just the extra money but the aspects on resilience and the rest.

However, I turn the Minister’s attention back to what the noble Lord, Lord Kerr, said. These increases in defence expenditure matter only in terms of the capability that they will produce, and that depends very much on whether or not these figures are accurate and whether the contention that they are going to be fully funded is correct. Many of the economists and experts outside, having looked at the figures overnight, are questioning very deeply their veracity—not only the fact that the £75 billion championed here is based on an assumption about flat cash values of expenditure but the fact that there is a gap between the £4.5 billion a year the Government say they will spend and the £7 billion. How is it going to be produced? Mr Ben Zaranko of the Institute for Fiscal Studies says that what is proposed will not be fully funded. He said:

“It’s in the ballpark of full-throttle austerity”.


The Resolution Foundation says that the contention that it is fully funded is a “joke”. Since we are not laughing, and since these matters are of national and international importance, can the Minister now tell us precisely what is the veracity of the figures that have been produced?

[The Earl of Minto (Con)]

My Lords, I really appreciate the detail of that question. Of course, the importance of getting the figures right and where the money is coming from is critical to the success of the entire endeavour. The detail is such that I would rather write than try to answer the question now, but there is no doubt that the commitment to this level of expenditure has been made and will be delivered.