Thursday 19th October 2017

(6 years, 6 months ago)

Westminster Hall
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Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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I shall be brief, Mr Bone. There is a realism that we need to bring to this debate. A capability review starts with what sort of country we want to be, what sort of role we want to play in the world, and the strategic situation that we face; and the only thing that is changing is the strategic situation that we face, which is getting worse. The Development, Concepts and Doctrine Centre puts state-on-state warfare as a major threat; it is slight now, but growing and will be becoming severe in the next 20 or 30 years. That is the context in which this debate should be seen. We keep hearing, peppered throughout the debate, the noises from colleagues who are complaining that capability is being cut on an arbitrary basis because there is not enough money in the budget. These are not strategic decisions; they are decisions taken to match a year-on-year target, so the impression being given is that the defence budget is really being planned only one year ahead, with the consequences of these cuts.

Let us look back over the last seven years. The coalition Government inherited a black hole in the defence budget of £35 billion. Coupled with George Osborne’s 8% defence cash cut to the headline figure, that meant that we reached 2015 already having suffered a real-terms cut of 17% in the defence budget, regardless of the ongoing pressure of defence cost inflation. Recently, we have suffered the collapse in the value of the pound against the dollar, as has been said; and looking five and 10 years ahead, we are facing another black hole in the defence budget, which will have severe consequences, because the big equipment programmes that tend to dominate defence expenditure are crowding out investment in technology and people. Always it is manpower that takes the cut to protect the big equipment programmes.

We need to concentrate not just on how we are to strategically improve the defence budget to protect the existing programmes. If we are to have such a limited defence budget, we need to learn how to spend more on people, technology and industrial capacity, to be able to build the equipment that we need for the campaign that we are in, rather than finding ourselves with the equipment that we ordered 10 years ago, which is inappropriate for the campaign that we now face. We need to invest more in the people, who are, in the end, the absolute force multiplier in any crisis that we face. It is a big challenge, but if we continue on the present trajectory, the situation will just get worse.