Oral Answers to Questions

Chris Ruane Excerpts

Monday 11th June 2012 Commons Chamber

[Peter Luff]

I have enormous respect for the hon. Lady’s expression of concern for her constituents, and I pay tribute to the work that those people have done over many years to support the armed forces. However, it is not true to say that the policy that she describes is the cause of the problem. The problem is that BAE Systems has not won contracts at this site. Meanwhile, the Warrior sustainment programme, the Scout SV programme, the Foxhound programme and the integration of the urgent operational requirements continue around the United Kingdom, generating thousands of highly skilled and important jobs. I very much regret that BAE Systems has been uncompetitive, but it is not the fault of the Government. The company must answer why it could not compete successfully for contracts.

[Chris Ruane (Vale of Clwyd) (Lab)]

12. What budget his Department will require after 2015; and if he will make a statement.

[The Secretary of State for Defence (Mr Philip Hammond)]

The budget after 2015 will be set at the next spending review. Our current planning assumption is for a flat real-terms budget settlement overall, with a 1% real-terms increase per annum in the equipment and support budget, as agreed with the Treasury.

[Chris Ruane]

When will the Secretary of State publish the National Audit Office report on the budget and equipment programme? Such impartial information is needed by us as MPs, the public and the defence industry.

[Mr Hammond]

I completely accept that, and as I said to my right hon. Friend the Member for North East Hampshire (Mr Arbuthnot) a few moments ago, I am aware of the fact that the degree of confidentiality around the defence budget invites scepticism when such announcements are made. As soon as we have the report from the National Audit Office, we will publish it.