Oral Answers to Questions

Derek Twigg Excerpts

Monday 25th February 2013 Commons Chamber

[Rosie Cooper (West Lancashire) (Lab)]

1. What plans he has for the defence budget post-2015.

[Derek Twigg (Halton) (Lab)]

15. What assessment he has made of the likely defence budget post-2015.

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

The defence budget for the financial year 2015-16 will be set in the current spending round, which is expected to conclude in the summer. The budget for subsequent years will be set in the next spending review. The Ministry of Defence has an agreement with Her Majesty’s Treasury that we may plan on the assumption of a 1% real-terms annual increase in the equipment budget—about 40% of the current defence budget, rising to 45%—from 2015-16 to 2020-21. Our equipment plan, which we recently published, is based on that assumption.

--- Later in debate ---

[Mr Speaker]

Order. Both the question and the answer are hopelessly long-winded; we need to get better.

[Derek Twigg]

The Prime Minister promised real-terms growth in the post-2015 budget. Can the Secretary of State confirm that that will still be the case for the equipment budget and the non-equipment budget?

[Mr Hammond]

The Prime Minister has made it clear that he stands by his view that the equipment plan budget needs to increase in real terms, and we have a pledge from Her Majesty’s Treasury that we may plan on the assumption of a 1% real-terms increase. Our planning assumption is flat real-terms growth for the remainder of the budget.