Oral Answers to Questions

Diana Johnson Excerpts

Monday 15th April 2013 Commons Chamber

[Mr Hammond]

I am grateful to the right hon. Gentleman for his question. There have been no discussions with and no requests from the US, as far as I am aware—certainly at ministerial level—regarding any form of logistical support in relation to the tensions on the Korean peninsula. Again, as far as I am aware, there is no proposal by the US to move any assets from the Afghanistan theatre in response to this crisis.

[Diana Johnson (Kingston upon Hull North) (Lab)]

10. What recent progress he has made on balancing the defence budget.

[Mrs Mary Glindon (North Tyneside) (Lab)]

17. What recent progress he has made on balancing the defence budget.

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

I announced to the House last May that we had eliminated the black hole in the finances of the Ministry of Defence that we inherited from the Labour party, and had brought the Defence budget into balance. Since then, on the one hand, we have been required to make further budget reductions in 2013-14 and 2014-15 of £1.2 billion in total as a result of the Chancellor’s announcements at autumn statement 2012 and Budget 2013; on the other hand, we have made further savings through efficiency and renegotiation of contracts and have been granted exceptional levels of end-year flexibility by the Treasury to carry forward 100% of our 2012-13 underspend, including unneeded contingency provisions, into 2013-14 and 2014-15. In consequence, we are confident that we can absorb the budget reductions announced without any significant impact on core defence output in those years.

[Diana Johnson]

Ministers frequently say that they have a defence review and then budget according to the security needs of the country, so I am a little confused as to why No. 10 and the Treasury say that there will be defence cuts post 2015. Is it because the Government’s priority is Treasury accountants, rather than the security needs of this country?

[Mr Hammond]

The Government have announced that there will be a spending review—spending review ’13 —which will set the budgets for non-ring-fenced Departments, including Defence, for 2015-16. There has been an announcement confirming that the equipment programme will be protected in the defence budget, with a real-terms increase of 1% per annum between 2015-16 and 2020-21.