Ministry of Defence

Ian Roome Excerpts

Wednesday 4th March 2026 Commons Chamber

[Ian Roome (North Devon) (LD)]

I thank the Chair of the Defence Committee for securing this estimates debate on defence. Of all the demands on public finances, none are more serious than paying for this country’s defence. Recent years—even the last few days—have brought that into sharp relief. This time last year, at the spring statement, the Government said they would go further and faster on defence, announcing a £2.2 billion uplift to the Ministry of Defence budget, helping the UK to reach a defence spending target of 2.5% of GDP under the NATO definition.

It remains the Government’s stated ambition for the UK to reach 3% during the next Parliament. The Liberal Democrats want to see that delivered this side of 2030, but the sooner it can be achieved, the better. The numbers must be weighed against what we expect from our armed forces, but we must guard against Russian aggression despite the cost.

We can still do more. The Prime Minister’s assertion that the Government would spend an additional £13.4 billion on defence every year from 2027 is an increase in cash terms, but not in real terms. As a percentage of GDP, we are simply returning to the early 1990s levels of defence spending, not the far higher levels we saw during the cold war. However, we must not be too hard on ourselves: in real terms, defence spending will soon approach the heights of the 1980s—but protecting a much bigger economy.

The UK provides an immensely powerful nuclear deterrent to the NATO nuclear mission—a highly specialised capability, even among our allies—and many of Europe’s leading defence companies are based here in the UK. The great south-west has a particularly strong defence sector, and the Government are recognising the massive economic value of investing in a world-leading defence industry.

Defence spending supports over 430,000 jobs across the UK, with a giant supply chain that stretches across every region. We are one of only four European allies with aircraft carrier capability. The radar array at RAF Fylingdales and signals intelligence at GCHQ provide indispensable data gathering to our Five Eyes partners.

There is also firm political agreement about national defence across the House. Our freedom, democratic values and an open society must be defended—by force of arms if necessary. Our allies also face similar budget choices, so we should co-ordinate getting more bang for our buck. We must maximise our resources and defence capabilities by working as a team.

Even as eastern European nations plan against a scenario of a land war, we should lean into Britain’s position in the Atlantic and our historic strength in naval operations, in shipbuilding and in aviation. We must be honest with the public: the peace dividend that we have all enjoyed since the end of the cold war must now be retained and reinvested in these more difficult times in order to keep us all safe.

Last year, the Defence Committee and I visited Estonia, where defence spending is already over 5% of GDP. It is projected to rise to an astonishing 5.4% by the end of the decade. The Estonians recognise the threat to their way of life and consider this their duty. Our defence spending might be the price we pay to avoid something far worse. A pound invested today could be more important than 10 times that sum spent too late.

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[James MacCleary (Lewes) (LD)]

I thank the Backbench Business Committee for selecting this topic and the Chair of the Defence Committee for securing this debate.

The UK spent £62.2 billion on defence this year. The Government plan to raise that to £73.5 billion by 2028-29. It is a significant sum. But let us be honest about what that actually shows because some of the detail deserves a great deal more explanation than the Government have so far provided. Take the day-to-day spending figures. Investment spending has increased by £10.8 billion, a rise of nearly 23%. That sounds like a lot, but the single largest driver of that increase is a £9 billion jump in depreciation and impairment costs, described only as a “non-routine accounting adjustment.” That £9 billion is the largest single movement in the MOD budget, and the Government have provided no detail whatever on what that really is. I am afraid that is not good enough. When the Minister responds, I hope that he will shed some light on what that adjustment actually represents, because the public, and this House, deserve to know.

On capital spending, the increase is a more modest 0.3%, just £63.7 million. Yet within that is a reduction in funding for single-use military equipment. At a time when Ukraine has taught us the vital importance of munitions stockpiles and consumable kit, cutting that line is a curious choice, so I would again welcome a clarification from the Minister.

We also keep hearing, as we have several times today, about the defence investment plan—the document that was meant to be published last autumn. Autumn came and went. We are now in March 2026, and it is still nowhere to be seen. The Government have made the plan the centrepiece of their defence modernisation narrative, and every time we ask hard questions about procurement, capability gaps or industrial strategy, we are told to wait for the DIP. But the DIP never arrives. I sometimes wonder if the DIP was part of some mass hallucination that we all had last year.

[Ian Roome (North Devon) (LD)]

I am getting frustrated about the defence investment plan. Could the Minister, when he sums up, confirm whether it is stuck in the Treasury, and the two Departments are arguing about what it can and cannot include? What is the hold-up between the MOD and the Treasury?

[James MacCleary]

I thank my hon. Friend for his intervention; it is important that that question is answered. It is starting to look less like a plan and more like a convenient excuse for delay. The Liberal Democrats call on the Government today to commit to a firm publication date, not a vague promise but an actual date. Parliament and industry cannot plan without it.

My party has put forward concrete proposals to accelerate defence investment, in particular through defence bonds. We have called on the Government to issue publicly available defence bonds, raising up to £20 billion for capital investment over two years, giving members of the public the direct opportunity to invest in Britain’s security, fixed- term, legally ringfenced to capital defence spending and capped at £20 billion. It is a tried and tested mechanism for mobilising public capital behind a national purpose. We keep hearing how urgent it is to invest, but there is no action.