Ministry of Defence

Debate between Edward Leigh and Paul Sweeney

Monday 26th February 2018 Commons Chamber

[Sir Edward Leigh]

That is an extremely good point, and I will come on to deal with the people side.

As the Defence Committee has pointed out, there appear to be some shenanigans going on in relation to how we reach the 2% target, and this is a really good opportunity for us to discuss money in detail and for the Minister to reply to these points. The criteria seem to change from year to year, with new bits—war pensions and other expenditure—qualifying when they have not previously done so. NATO is apparently satisfied, but this rather gives the impression that we are meeting our targets only by means of creative accounting, and when it comes to the defence of the realm, surely creative accounting is not good enough.

Let me say a word about procurement. What are our procurement procedures, and are we getting value for money? Professor Julian Lindley French testified, again to the Defence Committee:

“If you look at the $90 billion being spent by the Russians as part of their modernisation programme, the $150 billion or so being spent by the Chinese and what other countries around the world are doing, what strikes me is how few assets—both platforms and systems—the UK gets for its money.”

As a former Chairman of the Public Accounts Committee, I am talking not just about more money for the MOD, but about spending the money more wisely.

The MOD committed itself to new purchases arising from its 2015 strategic defence and security review before it established how they could be paid for. This requires the MOD to generate £5.8 billion of new savings from within the defence equipment plan itself, in addition to £1.5 billion from the wider defence budget, which is already under pressure. We never of course know what crisis may happen, and if a crisis happens and our troops have to be deployed, where will the money come from? In such a case, will we end up taking money from procurement that we had not expected to take?

[Mr Paul Sweeney (Glasgow North East) (Lab/Co-op)]

I thank the hon. Gentleman for giving way on that very important point and for his excellent introduction to the debate. Does he recognise the issue of the defence inflation rate, which in recent years has been 3.9%, while background inflation has been just 0.8%, leading to a real depreciation in real purchasing power for defence? Is that not the root cause of the problems we are seeing with the attrition of defence capability?

[Sir Edward Leigh]

That point on purchasing power is a very pertinent one. I hope that the Minister replies to it, because it is a point well made.

Uncertainties and over-optimism—there is over-optimism—in the project costs mean that the final costs of the defence equipment plan may be significantly understated. The MOD’s cost assurance and analysis service reported that the costs in the 2016 plan were understated by £4.8 billion. Over a period of years, the MOD has failed to agree a workable way forward with the prime contractor on the procurement of a Type 26 warship, which has compromised maritime capability and placed further upward pressure on costs.

--- Later in debate ---

[Sir Edward Leigh]

My right hon. Friend is of course a former Minister for the Armed Forces and really does know what he is talking about. The Government should listen to him.

There is a problem with morale. Those who perceive service morale as low increased by 12% on the previous year in the Army and 15% in the Royal Marines in 2017. The overwhelming majority, 74%, feel proud to serve—we are proud of them for feeling proud to serve—but only a third feel valued by their service. What is the point of training men and women if we fail to keep them?

[Mr Sweeney]

On retention, the hon. Gentleman referred to the reservists and the recruitment challenges that they face. My infantry battalion—a reserve battalion—has seen a significant influx of former regular soldiers echeloning through from the Regular Army as it has been severely downsized, including by, in effect, the disbanding of an entire battalion of the Royal Regiment of Scotland. The concern is how long these former regular soldiers will remain reservists before they move out altogether, because they have benefited from a transition payment. Could that financial incentive just be temporary, and will we see a further pressure on reserve recruitment in the longer term?

[Sir Edward Leigh]

That is a fair point. Pressures build on pressures.

In conclusion, the problems are many, but they must be tackled head on. Speaking personally, my record on spending and saving is clear: I think that the state should spend as little as possible. However, we also have responsibilities of absolute necessity, such as the defence of the realm. It is not pompous to say that—it is an absolute fact. That is the first responsibility of what we do in this House and we are falling short. The Government simply have to commit to spending more if we are to have the armed forces that this country requires. In order to maintain our independence—not just our sovereignty, but our freedom of action and ability to make our own decisions rather than be dictated to by circumstances—we need highly trained, fully manned, well-equipped armed forces. For a trading island nation on the cusp of Brexit and turning her face to the world, Great Britain must turn the tide of decline in defence.

I hope that this debate will prove to be a turning point, but that is up to the Government to decide. One thing is sure: further stagnation and cutting capabilities will set us back further. Once again, I am reminded of the wise words of Admiral Andrew Cunningham during the battle of Crete. Exposed to German air assault, his ships were taking heavy losses as they helped to evacuate the Army from Crete to Egypt. Some suggested that he should suspend the Navy’s part in the evacuation, saving his ships but ending the tradition of solidarity under fire among the armed forces. Cunningham knew that the Navy must not let the Army down and he refused. He said these words:

“It takes three years to build a ship, but it takes three centuries to build a tradition. The evacuation will continue.”

Our traditions of a great nation and great armed forces must continue. That is why this important debate must continue, too.