Armed Forces Restructuring

Edward Leigh Excerpts

Thursday 23rd January 2014 Commons Chamber

[Mr Hammond]

Let me just be clear about what we are talking about, as although the hon. Lady may understand this, perhaps not all hon. Members do. When people reach their immediate pension point they can leave the Army, notwithstanding the fact that they may be only in their 40s, and take an immediate pension. When somebody is close to, but has not reached, their immediate pension point when they leave the Army through a redundancy, they receive an enhanced lump sum redundancy package to reflect that fact and they still, of course, retain their pension rights when they reach their pensionable age of 60 or 65, depending on what pension scheme they are in. We have looked at the alternatives and concluded that all of them would deliver at least as much unfairness to other groups, and that this is the fairest and most appropriate way to proceed.

[Sir Edward Leigh (Gainsborough) (Con)]

We were told, understandably, that the armed forces had to take their share of pain through the time of recession. Surely, by the same coin, as the economy is growing they can take their share of the gain. If the reserve recruitment programme does not go as well as we all hope it will go, can we at least keep the door open—I am not asking for a commitment now—to once again recruiting more for the Regular Army in the future and increasing it to meet our commitments as they arise?

[Mr Hammond]

I can say two things on that to my hon. Friend. First, unfortunately, the scale of the damage to our public finances is such that, as the Chancellor set out a couple of weeks ago, although the economy may be recovering, we have not yet dealt with the structural deficit we inherited from the Labour party, and it will take some years yet to correct the fiscal imbalances that we face in this country. However, he is right to say that we should never say never, and one of the key drivers in our restructuring of the Army is to ensure that we retain a capability to regenerate force, so that if at some future point our public priorities change or external circumstances force us to change them, we will have the capability within our armed forces to expand again and regenerate that capability.