Oral Answers to Questions

Debate between Harriett Baldwin and Chris Elmore

Monday 7th November 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Defence (Harriett Baldwin)]

The Ministry of Defence meets the Treasury regularly as part of its routine business. The spending review set out the Ministry of Defence’s spending plans for the rest of this Parliament. The defence budget is growing at 0.5% above inflation each year until 2020. We also have access to the new joint security fund. These commitments mean that the defence budget will rise to almost £40 billion by the end of the decade.

[Chris Elmore]

I thank the Minister for her answer. I listened carefully to the answer she gave to my hon. Friend the Member for Blaenau Gwent (Nick Smith) on the cost of the pound and the purchasing power of the Ministry of Defence. The Royal United Services Institute has suggested that the purchasing power of the UK’s defence budget could be cut by 2% as a result of the fall in sterling. What plans do the Government have to offset that?

[Harriett Baldwin]

Again, I put on the record the fact that defence spending will go up regardless of currency fluctuations because of the double lock on the defence budget. As part of ongoing management of the budgets at the Ministry of Defence, we pay and have paid regard to the currency risk in terms of our procurement programme.