Future Capability of the Armed Forces

Lord Swire Excerpts

Thursday 16th July 2026 Lords Chamber

[Lord Swire (Con)]

My Lords, it is a very great honour to follow the noble and gallant Lord. I find myself in no man’s land, squeezed between a former Chief of the Defence Staff and a valedictory Bishop, so I shall try to navigate as best I can through what could be dangerous territory.

I particularly welcome back my noble friend Lord Harlech; it is very good to see him. He was sent to the scrapheap. The REME have got hold of him, reconditioned him and polished him up. He has come back to serve on these Benches and we will get a lot of usage from him over the coming years, of that I am certain.

I draw attention—not only because I need to under the rules of the House but because it is appropriate to our deliberations this afternoon—to my involvement with BOKA, a company dedicated to security and defence, aerospace and space, sovereign resilience, AI and quantum. I chair the investment committee of that company, which is involved in many of the technologies that we have been discussing and will continue to discuss this afternoon.

I listened carefully to what the noble and gallant Lord just said, and he is right. I suspect that many of the speeches this afternoon will dwell on similar topics to underscore the fact that there is a profound change in the economics of warfare. The demand from defence comes from changing defence patterns resulting from our most recent experiences in Ukraine and Iran—two very different military scenarios, but with some common themes.

We are now witnessing a rapid pace of newly iterating technologies and attributable systems. These act as force multipliers to defence forces that are struggling with recruitment, and they assist in combating new threats in both conventional war-fighting and in the grey zone, such as the cyber domain. As such, defence procurement must be more focused on annualised budgeting with agile deployment and testing. It must rely more readily on partnering with private capital not only to share the burden of finance but to assist with the proper due diligence of new technologies in quick time. Further, the larger, exquisite systems will require dedicated sovereign funds for longer-term procurement cycles, but the number of items procured is likely to fall over the next decade.

In conclusion, I remain unconvinced that we have properly addressed and adapted our procurement policy in a rapidly changing environment. We need to be smarter and quicker. Our Armed Forces need equipment now and simply cannot wait for long-term projects to be realised. The funding of this sea change, which is what is required, will require a change in Treasury thinking, without which none of the desired changes will be achievable. It also requires leadership from the new, as yet untested Prime Minister. Tackling the country’s economy and unsustainable welfare budget must be his priority, without which the Government will simply be unable to fund the spending on defence we need in order both to honour our international commitments and to ensure the safety of our own people.