Defence Expenditure

Douglas Chapman Excerpts

Thursday 27th October 2016 Westminster Hall

[Douglas Chapman (Dunfermline and West Fife) (SNP)]

It is always a pleasure to serve under your chairmanship, Mr Bone. I thank the right hon. Member for New Forest East (Dr Lewis) for his input this afternoon and for his chairmanship of the Defence Committee. I associate the Scottish National party with his comments about the excellence of the Committee staff.

In preparing for today’s debate, I not only read the report and the Government response, but looked back over my notes from last year of the evidence that the Committee took. It speaks well of the quality of the witnesses to the inquiry that much of what they said is now coming to pass. I will touch on some of that evidence today.

This is obviously a vast subject that really deserves a day’s debate in the House. However, time pressures will restrict me to only dipping into some of the issues raised in the report. Those are the decidedly squidgy nature of what 2% means; the pressure that that will inevitably put on future procurement projects; and the overwhelming feeling that the Government are confusing “preserving the shop window”, which is typified by the pledge, with actual hard-headed strategic thinking that links in to capability. The focus on inputs has simply provided a useful smokescreen for a distinct lack of usable outputs in our defence capability.

The report is unequivocal that although 2% may act as a useful benchmark and a statement of intent, we should not kid ourselves that it means anything more than the MOD wants it to mean, because, quite simply, using previous measures of defence spending will bring us below the desired figure. Shifting the goalposts means bringing into that figure a whole range of spending priorities, from pensions right through to Trident, that would not have been included before. That has conspired with a whole range of other restraints and ring fences in a way that will see the MOD increasingly tie itself in knots.

Let us take pay restraint, for example. Central to future budgets of the Department is a commitment to ensuring that any rise in the pay of personnel does not exceed 1%. Any upwards movement on salaries would, given the nature of such a target, mean less money for other projects. As inflation rises in post-Brexit Britain, so our dedicated and selfless armed forces personnel will face a pay “crunch”, as Dr Robin Niblett of Chatham House foresaw in his evidence to the Committee last October.

In that regard, although giving hard-pressed personnel a pay rise will be out of the question, the one part of the 2% that there will be no problem with is funding the weapons of mass destruction. I and my colleagues have been relentless in asking the Government to address that anomaly. In fact, if the SNP Defence team could be renamed, I am sure that we would be called HMS Relentless, because we know that every penny spent on Trident is a penny less spent on conventional defence, and that also mean fewer pennies for the salaries of serving personnel.

The right hon. Member for New Forest East suggested that we should move to “three to be free”. I think that a great campaign would be to go for “nil to save on the bill”. Perhaps the Minister can comment on that.

As the Member for Dunfermline and West Fife, I am sad to say that every penny spent on Trident also means less money to support the stunning Queen Elizabeth-class carriers being built in my constituency. Those amazing vessels deserve and require a host of capabilities around them, but in the Government response to the report, we do not get much idea of how they will be paid for. Other hon. Members have alluded to the Type 26s, for example. Whether we are talking about the F-35B joint strike fighters that will fly from the carriers or the Type 26s that will protect them, it seems that in putting forward their pledge, the Government may have caught themselves in a trap of their own making. Of course, as the Great British pound continues to fall in value against the dollar, each of the planned 138 F-35s becomes that bit more expensive, even allowing for what the Minister alluded to earlier. Every day that passes without a timetable being given for the Type 26 programme means that the hard work of my constituents in ensuring that the carriers are delivered on time and on budget is being undermined. I hope that, along with addressing the other substantial points from the report today, the Minister will take the time to let us see what his Department plans to do to ensure that those projects are not adversely affected by the plummeting pound.

Ultimately, the problem is that the 2% pledge should not be confused with a strategy—a charge made by many witnesses in their evidence to the Committee and most forcefully by Professor Julian Lindley-French. The problem is well illuminated in the recent document leaked to the Financial Times, in which General Sir Richard Barrons critiqued the Ministry of Defence for its focus on “preserving the shop window” over its most basic national security duties. The 2% pledge obviously sits very nicely in that shop window.

Also in the shop window sit projects such as Trident, which the Government hope will boost our international prestige and look good in a press release, but which bear no relation to the threats that this country faces and are taking a terrible toll on real, usable procurement projects and, indeed, our armed forces personnel. As we float off into the uncertain waters of Brexit Britain, I would hope that at the very least we could have some form of real stability in our national defence, but as the report shows, as it is with Brexit, so it is with defence—there are more questions than answers.

[Mr Peter Bone (in the Chair)]

I thank hon. Members for their participation. Because we have run over a little bit—I thought it was right to do so—we will try to wind this debate up at 3.15 pm.