Fiscal Policy: Defence Spending

Andrew Snowden Excerpts

Monday 27th January 2025 Commons Chamber

[Luke Pollard]

The strategic defence review will set out clearly what threats the nation is facing and what capabilities we need. I would expect to see renewal of our capabilities, because we have seen from the war in Ukraine that warfare has changed. Some of the assumptions about how we structure our armed forces and how we fight have been challenged by the experience of warfare in Ukraine, and that is one of the reasons why this SDR is so important. It will set out the evolving capabilities that we need and how we will deliver them to keep our nation safe.

[Mr Andrew Snowden (Fylde) (Con)]

Given that the vast majority of the Ministry of Defence supply chain is in the private sector—for example, BAE Systems in Fylde at Warton and at Samlesbury, with jobs across Lancashire—and that those private companies have seen significant increases in costs following the Chancellor’s Budget squeezing their payroll costs, as well as increasing regulation through the employment Bill and in other areas, we will be able to buy considerably less kit for 2.5% at the end of the defence review than at the start of it. As the Government go through the defence review process, are they cutting the shopping list or planning to go above 2.5%?

[Luke Pollard]

I thank the hon. Gentleman for his question, and I support the work of the private sector businesses that do so much to support our armed forces. The needs of our armed forces will change and are changing; that means changed capability, but it also means a change in how we buy our kit. Certainly, if we look at some of the absolute procurement disasters under the last Government—only two of 49 defence procurement projects are on time and on budget—we see that we need not only to buy the right kit, but to buy it better. That is something that the last Government clearly failed to do; the shadow defence procurement Minister himself, the right hon. Member for Rayleigh and Wickford, described the defence procurement system as “broken”. We need to take steps forward, and the SDR and the defence industrial strategy will set out how we will improve defence procurement.