Defence: 2.5% GDP Spending Commitment

James Cartlidge Excerpts

Monday 11th November 2024 Commons Chamber

[James Cartlidge (South Suffolk) (Con)]

(Urgent Question): To ask the Secretary of State for Defence if he will make a statement on his commitment to spend 2.5% of GDP on defence.

[The Secretary of State for Defence (John Healey)]

I congratulate the shadow Defence Secretary on securing the first Defence urgent question of the new Parliament. Previous Defence Secretaries answered just two urgent questions in the whole of the last five years. Although I cannot promise to answer every future UQ, I wanted to answer the hon. Gentleman’s first one today to underline just how seriously I take our Department’s responsibility to report to this House.

The Government have a cast-iron commitment to spending 2.5% of GDP on defence. We promised it in our manifesto at the election, the Prime Minister promised it at NATO in Washington in July, and my right hon. Friend the Chancellor promised it in the Budget two weeks ago, as well as announcing a £3 billion boost for defence spending next year to start to fix the foundations for our armed forces. That, of course, is on top of £3 billion each year for Ukraine. I remind the House that the last time this country spent 2.5% of GDP on defence was in 2010, with the last Labour Government—a level not matched in any of the 14 Tory years since.

Everyone agrees that defence spending must increase to match and deal with the threats we face. One of our very first acts as a Government was to launch the strategic defence review, which is working at pace to look at the threats we face, the capabilities we need and the resources we have available. It is not just about how much we spend, but about how we spend it. The Prime Minister said at NATO that our plan in the SDR will come first, and then we will set out the pathway to spending 2.5%; the Chief Secretary to the Treasury said yesterday that this will come in the spring.

Today is Armistice Day. At the eleventh hour, I had the honour of laying a wreath at the Cenotaph. Today is a reminder of what is at stake in this new era of insecurity; a reminder that our dedicated servicemen and women, around the clock, around the world, work to keep us safe; and a reminder of the ultimate sacrifice that so many have made in the past so that we may live in freedom today. We will remember them.

[James Cartlidge]

Thank you for granting this urgent question, Mr Speaker, especially on Armistice Day. I am grateful for the Secretary of State’s response, but he keeps going back to 2010 when we spent 2.5%. That is true, but he says it without adding the fact that his Government had bankrupted the country. In fact, I asked the House of Commons Library about this. The Institute for Fiscal Studies has confirmed that if Labour had returned to government, it was planning cuts to the defence budget of 20% to 25%.

But this question is about today. The threat picture is far graver than it has been for many generations, as the Chief of the Defence Staff confirmed at the weekend. As the Secretary of State says, the Labour party committed in its general election manifesto to a

“path to spending 2.5 per cent of GDP on defence.”

The Prime Minister said shortly after taking office that it was “cast iron”, which the Secretary of State has repeated today.

With President Trump’s election victory, there will inevitably be a greater focus on what more European NATO members can do to boost Europe’s own defence, but yesterday the Chief Secretary to the Treasury and this morning the Secretary of State himself were unable to say whether the Government would deliver on 2.5% in the current Parliament. In addition, yesterday The Sunday Times reported that Defence Equipment and Support in Abbey Wood has effectively been instructed to avoid any new procurement at all for the rest of this financial year.

Spending 2.5% is not an end in itself. The key reason that in April we set out a fully funded multi-year pathway to 2.5% was to enable the Ministry of Defence to procure, at pace and at scale, the munitions that we need to urgently replenish our stocks to warfighting levels. With the whole world wanting to buy more munitions, we cannot afford to delay any further.

I have key questions for the Secretary of State, because at the same time we are having this debate, there are a whole load of new burdens coming for the MOD which it will have to cover. In which financial year does he expect the share of GDP spent on defence to start rising significantly, and will he guarantee to hit 2.5% in this Parliament—yes or no? Not including existing programmes, is it true that there is a freeze on new procurement of defence equipment and support for the rest of this financial year? Will the MOD be 100% compensated by the Treasury for higher employer national insurance contributions and for the cost of increasing continuity of education allowance, and will service families be 100% compensated for the extra VAT on school fees? Penultimately, on Armistice Day can the Secretary of State absolutely rule out surviving spouses of service personnel being taxed on death in service benefits? Finally, on the Chagos islands, in the Department’s written answer to me it refused to say how much the MOD will contribute to renting back our own military base, so this is a very simple question: the Secretary of State will not tell us how much it is going to cost, but does he know how much it is going to cost?

[Mr Speaker]

Please remember that when I grant urgent questions, the time each person has is limited. It is two minutes for the main Opposition party and one minute for the other Opposition party.