Defence Capability

Bob Stewart Excerpts

Thursday 19th October 2017 Westminster Hall

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

It is a pleasure to serve under your chairmanship, Mr Bone. I congratulate my hon. Friend the Member for Yeovil (Mr Fysh) on securing this important and timely debate and I echo the comments that he made about my right hon. Friend the Minister, whose recent actions in trying to save the life of an injured police officer are an example and inspiration to us all.

I welcome a review of Britain’s defence capability. There is, after all, much to review. We should review whether we are really meeting our 2% of GDP NATO spending commitment. We should review the woeful situation that means that we cannot commit to enduring brigade-size multi-theatre operational deployments. We should review what the future of defence capability and procurement will look like if we do not continue to support and encourage the expertise and world-leading skills that we have in our country and our industry. We absolutely must address the shortfall in the current defence equipment budget. I understand that that is about £10 billion over 10 years or so. I agree with other hon. Members that we must significantly increase defence spending, for several reasons: first, the defence of the realm and the protection of our people is the first duty of any Government; secondly, we must do it for vital strategic reasons; and, finally, the armed forces are the jewel in the crown of the country, and the best of Britain. Defence spending increases our industrial capability and the ability to defend ourselves, but it is also a fantastic vehicle for social mobility and advancement for people of all backgrounds.

A few weeks ago, I visited the Kurdistan region of Iraq. I was immensely proud to meet elements of 2nd Battalion the Mercian Regiment, who are there training peshmerga forces. That is one of the many contributions that we are making in the fight against Daesh, and it is a clear demonstration of our armed forces’ global reach. Needless to say, ours is not a peaceful world: we can see threats from an emboldened Russia, a belligerent North Korea, and the remnants of the Daesh death cult. There is also always the possibility of unforeseen threats. History demonstrates that we rarely see where the next conflict will come from. It is therefore unwise, at the very moment when we are launching ourselves back into the world as an independent, free and sovereign nation, to penny-pinch on our national defence expenditure.

The 2% NATO obligation, which I am pleased to see the Americans are urging all our NATO allies to take extremely seriously, was a welcome commitment from the previous Prime Minister. However, it may inadvertently have given our forces false hope. It is now clear that we achieve 2% only by a recent change in how we measure, and what we include in, our defence expenditure. The inclusion of forces pensions and efficiency savings diminishes the value of the 2% in terms of real defence capability. I hope sincerely that the review will address those matters and lead to a realistic increase in defence expenditure. However, regardless of how much is spent on defence in future—and we must spend more—the result must be forces that are truly capable, with the ability to project both hard and soft power globally.

Currently our armed forces cannot deploy at brigade level to two major operational theatres simultaneously and enduringly. That means that we could not today undertake Iraq and Afghanistan-type operations simultaneously. That is a massive reduction in our global power, our status and our military capability and credibility. We must be able to deploy in more than one operational theatre simultaneously and enduringly at brigade level if we are to be—or remain—a nation of some worth. We need the ability to project the full spectrum of our capabilities on land, sea and air without having to be part of an international coalition, as we did successfully in Sierra Leone and the Falklands.

[Bob Stewart (Beckenham) (Con)]

It is not just about the deployment of two brigade groups but about the follow-on forces: those that come six months later, and six months after that. We have to have sustainment. Sustainment is what guarantees us a decent result.

[Jack Lopresti]

I thank my hon. Friend for his excellent intervention. I was careful to use the word “enduringly”. We could possibly throw 10,000 troops around the world to do a short operation simultaneously, but the important point is about doing so over a reasonable period of time and enduringly.

As long as we have a funding settlement that forces commanders to choose between equipment and recruitment, the armed forces will remain severely restricted and hampered in their capabilities. I suggest that the restraint on our current defence capability must be reviewed as a matter of great urgency. Such discussions normally lead to the question of equipment and its provision. Better, more realistic funding will help buy more equipment in the mid-term, but we must think in strategic terms. If the review does not lead to increased investment but further limits the spending power and capability of our forces, we may soon discover that it will be more difficult for our country to remain a world-renowned centre of defence and aerospace excellence and expertise, never mind having the ability to defend our people here and abroad.

I have the interest and great pride of representing a constituency that has a very large number of successful and highly skilled defence and aerospace companies, the largest among them being Rolls-Royce, Airbus and GKN. As an example, Rolls-Royce represents 2% of all UK exports by value. We must build on and increase that. Filton and Bradley Stoke is also home to Defence Equipment and Support at MOD Abbey Wood, which employs about 10,000 people and does a fantastic job in procurement and equipping our armed forces across the world.

The most obvious example of the threat to our sovereign defence industrial capacity is the recent announcements from BAE. From conversations I had with representatives of Rolls-Royce in my constituency just a couple of days ago, I know it is concerned in the wake of those announcements. The RAF Typhoon jets have a predicted service life of until about 2040. That may sound like plenty of time, but the delivery of the next-generation fighter could take two decades from start to finish. Also, without such defence contracts, as well as clarity on what the Government’s plans are and sufficient funding, companies such as Rolls-Royce are in danger of losing skilled personnel capable of delivering such contracts. In recent conversations the company was unequivocal in its fear that once the capability and skills are lost, in many cases they are lost for good.

I am pleased that recent responses from the Ministry of Defence have confirmed that it understands how important the review is to British industry and our sovereign capacity to equip our armed forces properly. I would therefore like to ask the Minister when progress will be made on committing to the next-generation fighter. That is vital to safeguard the expertise we need and the capacity and capability we require for future generations.

The review comes at a crucial time. If done properly, and acted on, it will reinforce and strengthen our sovereign defence capability at a time when we are reasserting ourselves on the world stage. Crucially, in the end, wars are not won, and nations are not defended, by equipment alone; we need people. The Army has a severe manpower shortage, the Royal Navy is fearful of being unable to man our aircraft carriers and the Royal Marines are very concerned about potential cuts to our amphibious capabilities.

I call on the Minister to show real courage and leadership. A failure to increase resources would see Britain losing both its technical expertise and international credibility. In short, it would serve to entrench a dire situation and diminish our place in the world—and, crucially, our ability to defend our people.

--- Later in debate ---

[Bob Stewart]

I was with my hon. Friend when he visited. I point out to the House that the Saudi pilots we spoke to would often abort their mission immediately if they felt there was any danger of so-called—I hate this phrase—collateral damage; in other words, civilians being killed. That was good to hear.

[Leo Docherty]

I agree entirely with my hon. Friend. We should have the confidence to double down on those relationships. BAE Systems successfully supplied the Typhoon to our allies in Saudi Arabia, and it has been very effective operationally. We heard recently that BAE Systems has signed a memorandum of understanding with the state of Qatar for 24 Typhoon aircraft. I hope that more exports can be achieved throughout the region. It is the right thing to do not only commercially, but strategically and morally.

--- Later in debate ---

[Wayne David (Caerphilly) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Bone.

This is an important debate, and I congratulate the hon. Member for Yeovil (Mr Fysh) on securing it. It comes at a very appropriate time, as has been mentioned, because the Ministry of Defence, the Cabinet Office, the Treasury and other Government Departments are currently conducting a review of national security capabilities. My first question to the Minister, echoing what others have asked, is about whether he can indicate when that report will be published and what exactly its terms of reference will be. As I understand it, the strategic defence and security review will be, to use the Secretary of State for Defence’s phrase, “refreshed”. Will the Minister confirm that that will dovetail into the review of national security capabilities?

We know that a review is necessary because the Ministry of Defence is facing enormous problems. The SDSR 2015 is built on the premise that there will be sufficient efficiency savings, but as we all know those savings have not been identified. I know that the MOD was hoping for savings in the defence estate, but very little has come from that direction and, of course, there is the deprecation of the pound following the decision on Brexit. In fact, the Royal United Services Institute recently warned that there will be “substantial financial implications” for defence as a result of the weakening pound. In August, RUSI warned that the MOD faces extra costs of up to £700 million a year in the wake of the Brexit vote and the pound’s fall against the dollar. The National Audit Office recently pointed out that there is

“little room for unplanned cost growth”

and has expressed concern about the current defence equipment plan’s vulnerability to foreign exchange rates.

The problem is that approximately £18.6 billion is going to the United States in dollars. Rather than placing an emphasis on developing our own industrial defence capacity—our sovereign capacity—the Government are buying a whole raft of new equipment from the US for the Navy and the RAF: the F-35s, nine P-8 Poseidon maritime patrol aircrafts and 50 Apache attack helicopters, all from the United States of America.

[Bob Stewart]

We buy equipment and weapons from the United States because they are better than the equipment and weapons we can produce here, and those of us here all want our armed forces to have the best. That is the reason we do it: we do not have a choice if we want to help our armed forces.