Strategic Defence and Security Review

Dan Byles Excerpts

Thursday 4th November 2010 Commons Chamber

[Mr Ainsworth]

Plans are in place, and the argument the hon. Gentleman puts is part of the cover for the 2015 decision, but I know that, privately if not publicly, he has no doubts about the real reasons that decision was taken, and he knows that what I am saying is true. Many other people know it to be true, too.

On the strategic defence review, I do not deny the problems the Government were facing, although they are doing their very best to exaggerate the difficulties we left them. They keep on mentioning the figure of £38 billion, and if they persist in doing so eventually somebody will apply their common sense and realise that it is a bit of an exaggeration. There was overheating in the defence budget, but the only way we can get even close to £38 billion is by assuming a flat cash settlement for more than 10 years and no trimming of defence aspirations. That is not what the Government did and it is not what any alternative Government would do.

However, I do not blame the Government for exaggerating the difficulties they inherited because they did have some very difficult decisions to take. They faced an extremely acute financial situation and they had to try to conduct a strategic defence review with the Army in the field. I congratulate them on their efforts to do that, although I think they could have tried harder. They could have consulted more and therefore not rushed, and they need not have been totally dominated by the financial considerations, but they did their best in very difficult circumstances.

I also congratulate the Government on their decision to invest in cyber-security. That is a genuine area of weakness that needs to be addressed, but is the investment they are making in cyber-capability being counted towards our 2% NATO target for defence spending? What else are they putting into that in order to get to the 2% figure and thereby shield themselves from the fact that there are considerable defence cuts here that could—it depends on how we count this—take us below that target figure?

[Dan Byles (North Warwickshire) (Con)]

I join others in thanking the right hon. Gentleman for the work he did as Secretary of State. We all know that he inherited a very difficult situation and he did the best he could in the circumstances. He is also my constituency neighbour of course, and we work together on other issues.

The right hon. Gentleman has alluded several times to the fact that the review was a spending review rather than a strategic defence review. Does he honestly believe that if Labour had won the last election, defence would have had a better financial settlement than has been achieved under this Government?

[Mr Ainsworth]

I have to say that the answer is, “Not necessarily.” I think we would have taken more time and consulted more broadly, however. I think we would have got industry on board and carried more people with us, but I am not sure how well we would have done. I will come on to that issue later, however, as I want to make one further point about the level of settlement that has been achieved.

I am genuinely worried about the decision the Government took on the joint strike fighter. The Prime Minister’s announcement on the strategic defence review revealed that we have not only not funded the carriers, but we have bought the wrong aircraft. The Government have, effectively, done away with our short take-off and vertical landing capability not for 10 years because of the early demise of the Harrier, but for ever. We will therefore end up with the JSF and the Typhoons. They will be two separate fleets, and small fleets too, because there will not be the money to expand either of them. We will be faced with the running costs of those two separate fleets as well, when they have fundamentally the same capability.

I know that the JSF has stealth whereas the Typhoon does not, but the Typhoon is a pretty impressive beast, and we are going to wind up paying for two separate sets of maintenance for two separate fleets of fast jets that do fundamentally the same thing, but having given up short take-off and vertical landing capability. That capability is not only required for flying off carriers; it is required for other scenarios too—day-one warfare involving failed states, for example. A Harrier can take off in a big car park, but the JSF basically needs a full-size runway in order to be able to operate. That capability would be greatly valued by the US Marine Corps if the programme had been maintained, but now that the British Government have pulled out it will not be available to us. I am not at all sure that the Government have not made a significant mistake in that regard.

Let me return to how well the Government did. The Defence Secretary fought his corner and the headline cut in the defence budget is 8%, but in reality it is 13%. That is because the Treasury has won and it has transferred the costs of the deterrent to the core budget. That is getting very little attention, but it is equivalent to another 5% cut in the defence budget. The Government put off the decision on the renewal of the deterrent and the Prime Minister told the House in a fantastic piece of salesmanship that he had actually managed to save money while doing so. Well, he managed to save money by the normal process of the initial gate assessment that is going on: by cutting the number of warheads and of tubes. That would have been done, irrespective of who the Government were, as part of the assessment phase of the deterrent, because both parties are committed to the maintenance of a minimum credible nuclear deterrent.

But again the decision to delay the deterrent was one made for political reasons—for coalition reasons—not for industrial reasons or for reasons of capability. No matter what the Prime Minister tries to say to the House, that decision, on its own, costs this country billions of pounds—it certainly costs in excess of £1 billion and I would say the figure is probably £2 billion. So for the purposes of keeping peace in the coalition for the next five years, we have thrown away between £1 billion and £2 billion on the deterrent. The Prime Minister accused us, with a degree of justification, of shirking hard decisions and pushing things to the right, but while he was saying that—while those words were falling from his mouth—he was doing exactly the same thing. That is one reason why this is not a strategic defence review but a political fix and a spending review, and most certainly with regard to Trident.

As a result of that, my party—I know that the Liberal Democrats will have to do this—may well have to consider whether or not we maintain our position on Trident. We set the position in 2006 and we held to it. We did not try, as the Liberal Democrats did, some short-term political fix to pretend that we had another way. But if no decision is to be taken for another five years and if the cost of a like-for-like replacement of Trident will fall wholly and solely on the defence budget, at the cost of other military capability, we will have to think seriously about whether there is another way. We will also have to use the time, the expertise that exists in think-tanks and some of the information that will come from the armed forces themselves, now that the pressure is on and they are paying for the deterrent in alternative capability, to see whether there is some other way of maintaining Britain’s deterrent without the huge cost that will come at the expense of the rest of our armed forces.