(1 year, 4 months ago)
Commons ChamberI join the Secretary of State in congratulating our brilliant Royal Marines on their 360th anniversary.
This timely and important debate coincides with Mr Speaker’s official opening of the constituency garden of remembrance earlier today. It marks the point where, as a House, we pay tribute to all those who serve and have served our country, particularly those who paid the ultimate sacrifice.
As we approach Remembrance Day, I thank the Royal British Legion and charities across the UK that ensure that our collective memory of the fallen never fades, while providing invaluable services and support to today’s veterans. I am also proud of the previous Government’s record on veterans, which my colleague, the shadow Veterans Minister, will cover in his closing speech. The focus of my speech is primarily on the remembrance part of this debate.
I believe that politicians best honour the fallen by never forgetting the lessons of the wars in which they fought. This means never being complacent about the threats we face and doing everything possible to strengthen our deterrence, so that this country is never again embroiled in the senseless slaughter of existential war. It must be obvious to all of us that the threat of such a war looms larger over our continent than it has for many years. To that end, and I say this with respect to the Secretary of State, it was profoundly ill-judged of him to suggest, at a time when deterrence is of paramount importance, that Britain is not ready to fight a war. I reassure the British public, millions of whom will soon wear their poppies with pride, that our armed forces remain among the best in the world. After all, it would be wholly unrealistic to expect this nation to fight Russia single-handedly. The challenge is to be ready to fight and deter as part of NATO, and no one should be in any doubt of the outsized scale of our contribution to the alliance.
First and foremost, we unambiguously and unflinchingly offer our 24/7 nuclear deterrent for the defence of all European NATO allies, and we are incredibly proud to have delivered a continuous at-sea deterrent every day since 1969. Moreover, during NATO’s Steadfast Defender exercise earlier this year—its largest such exercise since the end of the cold war—we led the way with 20,000 service personnel, eight warships and submarines and an aircraft carrier, plus tanks, artillery, helicopters and Poseidon P-8 surveillance aircraft. That is not the contribution of a nation unable to fight.
As we prepare to look back and remember past conflicts, the most important example of our readiness is not an exercise but a real-world war that is happening on our continent today. When it comes to Putin’s illegal invasion of Ukraine, the UK, under the previous Government, played a singular leadership role, which started before the Russian tanks rolled in. Since 2014, we have trained thousands of Ukrainians to fight and we provided crucial anti-tank weaponry before the invasion commenced. That helped the Ukrainians to defy expectations and stay in the fight. Surely we can all see that, had Ukraine fallen early, the world would have been an even more dangerous place, with our adversaries emboldened and with NATO’s borders potentially threatened.
As the previous Secretary of State, Grant Shapps, revealed, President Zelensky has said that the UK, more than any other nation, has been responsible for helping to ensure that the majority of Ukraine remains free, more than two years after Russia’s main attack. Far from talking down our armed forces, we should be extremely proud of the role we have played in supporting Ukraine’s fight for freedom.
That said, of course we have our challenges. First and foremost is the need to replenish munitions, not least after gifting so many to Ukraine. That is why, in April, we set out a fully funded plan to increase defence spending to 2.5% of GDP by 2030, paid for by reducing the civil service to its pre-pandemic size and prioritising £10 billion of additional funding for replenishment.
Mike Martin (Tunbridge Wells) (LD)
Does the shadow Minister think that the Conservative party is missing the point of this debate by seeking to score political points?
With respect, I think the hon. Gentleman misses the point of my speech. As I said at the beginning, I am here to talk about remembrance, and I sincerely believe that the best way to honour the fallen is by learning the lessons of the past. That means always standing up for our country and ensuring that we have the strongest possible deterrent. That is why, with a Budget on Wednesday, it really matters that we talk about defence spending in this debate. This is a matter of supreme national interest.
As we prepare to remember all those lives lost serving in our Navy and merchant fleet, this replenishment would have addressed key emerging threats to our naval ships that have been exposed in the Red sea, such as by funding DragonFire laser procurement to tackle drones and upgrading our Sea Viper system to combat ballistic missiles. People may think that that is not relevant, but after all the tragedy we saw when we lost those ships in the Falklands we should be doing everything possible urgently to procure systems that can help to defend our ships against these emerging threats.
Another key challenge is retention. We know that we need to do everything possible to support those who serve in our armed forces today. Two days from the Budget, I hope that the Secretary of State has read today’s warning in The Times online that hundreds may leave the armed forces because of the Government’s education tax. The article quotes the many service personnel who have emailed me with their concerns, such as the wife of an Army major who writes:
“The extra 20% will make things extremely difficult, and we fear we will have to choose between my husband’s career or our daughter’s education.”
Labour should not be forcing thousands of military families to make so stark a choice when we cannot afford to lose such experienced personnel, and when it costs almost £48,000 a head to train just one much less experienced replacement.
Finally, there is the key issue of accommodation. I am proud of the additional £400 million that the Conservative Government injected to help address damp, mould and the many other problems that routinely affect our military homes. However, as someone with a background in housing before entering Parliament, it was clear to me from day one as the Minister responsible for the defence estate that we had to do something far more radical, given the inherent structural problems with so much of our service accommodation.
That is why I built on my predecessor Jeremy Quin’s work to put the wheels in motion so that, subject to negotiation, we could buy back the defence estate from Annington Homes. If we really want homes fit for heroes, as I am sure we all do, I strongly believe that we need a complete rebuild of the defence estate, rather than year-to-year sticking plaster solutions. It could be one of the country’s most exciting regeneration projects, but it requires ownership to be fully restored, and that means Annington. Of course, Annington is an area of considerable legal and commercial sensitivity, so I do not expect a direct answer, but I hope the Government will continue to build on my considerable work in that area.
If we are truly to honour the fallen, we must do everything to avoid future conflict by having the strongest possible deterrence. I have huge respect for the Secretary of State, but I believe it was a mistake to say that we are not ready to fight. We now need to see whether he is ready to fight for our armed forces. We need two things in Wednesday’s Budget: a VAT exemption on school fees for forces families, and a clear pathway to spending 2.5% of GDP on defence so that we can urgently replenish our munition stocks to war-fighting levels. Those who serve our country deserve no less.
(1 year, 5 months ago)
Commons ChamberI thank the Secretary of State for advance sight of his statement. I offer my condolences and those of Opposition Members to the family and friends of Corporal Christopher Gill, who we understand tragically lost his life during a training exercise recently. We understand that he served his country for 13 years, including in Afghanistan, and more recently volunteered to train Ukrainian soldiers in the UK.
Having visited Salisbury plain last May to see Operation Interflex, I know that we should be grateful to all our service personnel, including Corporal Gill, who have played such a huge role in training the Ukrainian armed forces so that they can continue to fight and defend their homeland. That fight goes on, and we continue to offer all support to the Government for that, as well as standing by the Government, people and armed forces of Ukraine.
We therefore warmly welcome the G7 joint declaration and funding announcement, but we share the Government’s concerns in relation to North Korea. I have lost count of the many times that Vladimir Putin has accused us and our allies of so-called escalatory action in our support for Ukraine, but today we are considering the very real threat of North Korean combat troops being sent to support Russia’s illegal invasion. Let us be in no doubt: any potential agreement between Putin and Kim Jong-un to have North Korean boots on the ground in Ukraine at all—let alone in the numbers that have been reported—would be a major escalatory ratchet by Putin himself.
After all, as the Secretary of State confirmed, Russia has already procured munitions and ballistic missiles from North Korea. The transfer of those weapons in the first place was not only completely unacceptable, but a blatant violation of the UN sanctions that Russia itself voted for. The transfer of North Korean weapons and now the threat of combat troops show weakness and desperation, not strength, on Putin’s part, as the Secretary of State said. Above all, this raises the question of what Putin is offering North Korea in return, but we should not be deterred and must respond.
We took decisive countermeasures to help constrain the transfer of weapons between North Korea and Russia. The Conservative Government imposed sanctions on the arms-for-oil trade between Russia and North Korea, including asset freezes, travel bans and transport sanctions. The new Government, in turn, must now respond to this latest threat of combat troops. Can I press the Secretary of State to look at how the UK should respond in the round? Yes, we need to look at the diplomatic tools we can use to disrupt co-operation between North Korea and Russia, but we also need to urgently look again both at our military aid to Ukraine and at the freedom we offer it to use the munitions that we supply, particularly long-range missiles.
Given the need to continue providing further capability to Ukraine, we welcome yesterday’s announcement that the UK will contribute £2.26 billion to the G7 extraordinary revenue acceleration loan scheme for Ukraine. The Conservative Government were a vocal advocate for mobilising frozen Russian assets to support Ukraine. We strongly welcome the additional funding. When will the money be made available to Ukraine, and over what term? The sooner those funds are mobilised, the better. When exactly will Ukraine receive the funding?
Finally, we have spoken many times of the reality that we are facing not just Russian aggression, but a broader authoritarian axis that ultimately threatens the UK. We have seen that explicitly with Iran and the Red sea, and now we see it coming ever closer to home with the prospect of North Korean troops deploying in a European theatre of war. Surely that strengthens even further the argument that the Government need to deliver on their supposed cast-iron guarantee to spend 2.5% on defence. As the Secretary of State failed to answer me at Defence orals, can I once again press him to confirm that he is fighting hard, with the Treasury, to deliver a clear pathway to 2.5% in the Budget at the end of this month?
I am grateful to the hon. Gentleman for his comments about Corporal Gill. I will pass them on to his widow and make sure that his family are aware of them and of the sentiments of the whole House. The hon. Gentleman is right about the enormous contribution that Corporal Gill made, including to the Interflex training programme, which I was proud to be able to commit to extending throughout 2025. The Chancellor and I visited the programme together on Sunday; we met Colonel Boardman, the commander of Operation Interflex, and the officers and soldiers of 3 Scots, together with instructors from Kosovo, Australia and Sweden, illustrating the way the UK is leading a multinational effort to support Ukrainian soldiers.
The hon. Gentleman is right and I suspect that there is unanimity in the House on concern about the developments in Russia and the growing alliance with North Korea, and that it is united in its determination to take the action required to respond and united in recognising that we must do so alongside NATO and other G7 allies.
The hon. Gentleman asked about the new loan funds available for Ukraine through the proceeds of the interest on frozen Russian assets. We expect those to be available and in Ukraine’s hands from early in the new year, which will put the UK ahead of many other nations participating in the scheme.
On the hon. Gentleman’s final question, we remain totally committed to spending 2.5% on defence. We must do this to meet the threats that this country faces. The Prime Minister confirmed the commitment to set out a clear path to 2.5% in our first week in Government at the NATO summit in Washington. I gently say again to the hon. Gentleman that the last time this country spent 2.5% on defence was in 2010 under a Labour Government, and that that level was never matched in any of the 14 Conservative years since.
(1 year, 5 months ago)
Commons ChamberThank you, Mr Speaker. I associate all of us in my party with your comments about the late Alex Salmond.
The most important point about the SDR is that it must not be used as an excuse to delay increasing the defence budget to 2.5% of GDP. In September, in answers to written questions, the Department said that it would set out a path to spending 2.5% of GDP on defence “as soon as possible”, but last week, at the Dispatch Box, in his middle east statement, the Prime Minister said that the Government would go to 2.5% “in due course”. We all know that there is a massive difference between the two, so which is it?
The Government are totally committed to spending 2.5% on defence to meet the increasing threat the country faces. The Prime Minister confirmed that in his first week in office, when he and I were together at the NATO summit in Washington. Of course, the last time this country spent 2.5% on defence was in 2010 under Labour, and that level was not matched in any one of the 14 years in which the hon. Gentleman’s party was in power.
That is a concern. In 2010, just to remind the House, the black hole in the defence budget was bigger than the defence budget, and we were left a note saying that there was no money left. It is significant if the wording is no longer “as soon as possible” and is now “in due course”. It is in the national interest to go to 2.5% because of the threats we face as a country. If the Secretary of State told us now that he was fighting hard with the Treasury to go to 2.5% in the Budget at the end of this month, he would have our full support. Is that what he is doing?
Fourteen years, Mr Speaker, yet the Conservatives produced their unfunded plan for 2.5% on defence only four weeks before they called the election. It was the hon. Gentleman’s former boss, the Defence Secretary Ben Wallace, who told the truth about their record in government when he said to the House:
“we have hollowed out and underfunded”—[Official Report, 30 January 2023; Vol. 727, c. 18.]
our armed forces since 2010.
Thousands of children of armed forces personnel face unaffordable increases to their school fees because of this Government’s ideological decision to charge VAT on education. That could have the perverse effect of forcing experienced personnel to quit the service of their country just when we should be seeking to maximise retention. Will the Minister therefore confirm that children of armed forces families will be exempt from the new VAT rise, and furthermore that that exemption will apply from January when the new tax kicks in?
We recognise the extraordinary strain that is sometimes placed on the family of armed forces personnel, including their children. That is why the continuity of education allowance—an important part of the package that reflects and respects the service—is in place, and it is why we are looking very closely at options to ensure we continue with that.
(1 year, 6 months ago)
Commons ChamberI am grateful to the Secretary of State for early sight of his statement, and for the briefings he has provided to me and all parliamentary colleagues. I associate myself and my party with the condolences he expressed regarding the tragic death of Lieutenant Leyshon.
As we have confirmed previously, I reiterate without reservation that, as Labour did when in opposition, we will continue to do everything possible to support the Government over Ukraine. We remain steadfast in our total condemnation of both Putin’s illegal invasion of Ukraine and his conduct of the war, during which he has shown no regard for human life, even, it would appear, that of his own service personnel, with losses now at terrible levels on all sides. Indeed—this was one of the Secretary of State’s most striking points on the operational situation—it is an extraordinary testament to the brutal disposition of the Putin regime that their strategy continues to rely on the mass sacrifice of infantry personnel.
That said, the Secretary of State is surely right to remind us that, despite the extraordinary naval success Ukraine has enjoyed in the Black sea and the surprise incursion into Kursk that has thrown Putin’s regime into confusion, Russia remains a formidable foe and nothing at all can be taken for granted. On the contrary, it is clear that the UK must continue to do all it can to support Ukraine’s Government, people and armed forces.
On the Conservative Benches, we are proud of the role our Government played in showing real leadership in respect of Ukraine. If Ukraine had fallen early, the world would have been in a precipice situation akin to the late 1930s, but we made a huge difference to avoiding that outcome by being the first nation to train Ukrainian troops, the first to provide main battle tanks and, in particular, the first to provide long-range weapons. In August, President Zelensky commented that Britain’s support for Ukraine has slowed down recently. What assessment has the Secretary of State made of those comments?
On these Benches, we recognise that a key part of our leadership has been bringing other allies on board, which must continue in key operational and logistical decision making. Nevertheless, we have also shown leadership as a sovereign nation that believes wholeheartedly in Ukraine’s fight for freedom. As such, I confirm that we would have no hesitation in supporting the Government in continuing that leadership were they to confirm that the Ukrainian Government have maximum freedom of operation with regard to all the munitions we have supplied, including long-range missiles.
On the provision of additional munitions and the latest news shared by the Secretary of State, I welcome the announcement of £160 million for air defence missiles to be produced, of course, in Belfast. That underlines the intention we had in government, when the latest round of support commenced, to ensure a maximum degree of benefit for the UK defence sector in our support for Ukraine. Will the Secretary of State confirm that that remains a top priority and that, as we supply Ukraine with more and more drones across defence, he will ensure that we rapidly learn the lessons of their deployment so that we can build the ecosystem for our own sovereign uncrewed sector?
We agree that supplying Ukraine with arms has been the right thing to do but—and the public feel this very strongly—that must be accompanied by the replenishment of our own stockpiles and platform inventory. A top priority of our funded, timetabled commitment to 2.5% was an additional £10 billion to replenish our munitions. Is the Secretary of State still committed to that extra £10 billion for munitions? Can he confirm that the delay in setting out a clear timetable to 2.5% will not lead to the deferment of any major munitions orders, either this financial year or next?
The Secretary of State spoke of Russian artillery outfiring Ukraine by 3:1, and he knows the crucial importance of industrial output. That being so, does he recognise that we must urgently fire up production across our own defence sector by committing to 2.5% as soon as possible?
Finally, one lesson from Ukraine is the vital importance of maintaining air superiority in battle. In relation to our future combat air capability, I asked the Secretary of State a set of written questions on 29 July on the sixth-generation global combat air programme spending, and he has to date answered only the questions on historical spend, not those on the current financial year. Will he therefore confirm whether his Department will be deferring any spending on GCAP planned for the current financial year?
I thank the hon. Gentleman for his support, his tone and his commitment to continuing to back further military aid to Ukraine, including the £160 million contract for lightweight multi-role missiles that I announced last week. He talked about the “mass sacrifice” of Russian personnel, and he is right. President Putin is a leader who shows contempt for the lives of his own soldiers.
On UK leadership, I have set out to the House my determination to maintain that leadership in the support for Ukraine, and demonstrated how we stepped that up in the first week, in the weeks that followed and last week at Ramstein. In terms of the lessons for drones, their deployment and our work with Ukraine, we are learning those lessons. We need to speed that up. Given the hon. Gentleman’s previous job, he will be well aware of the implications for the way in which we procure and contract for capabilities, both for export and for our stockpiles. On stockpiles, we have—as he will also know—so far spent £1 billion in the UK on replenishment. We have plans to build that, because we need to boost not just production, but the productive capacity of UK industry, so that we are capable of demonstrating that it can be scaled up in the face of future threats in a way that is not apparent at present.
The hon. Gentleman asks about long-range missiles. I have to say that only Putin benefits from an open debate about those sensitive issues, and I will not comment on operational discussions. There has been no change in the UK’s position. We continue to provide military aid to Ukraine, as I have set out, to support its clear right to self-defence and in line with the operation of international humanitarian law.
On the question of 2.5%, we will increase defence spending to 2.5% of GDP. The last time the UK spent 2.5% of GDP on defence was in 2010, when I last stood at this Dispatch Box as part of the previous Labour Government. In 2010, the Conservatives cut defence spending: they never matched 2.5% in any of their 14 years in office. My priority will always be to ensure that this country is well defended. In the face of growing threats, we will do more to make Britain secure at home and strong abroad.
(1 year, 8 months ago)
Commons ChamberIt is a pleasure to follow the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone)—although I must say that I have never confused him with Jeremy Thorpe—and to see you in the Chair, Mr Deputy Speaker, as I respond to the Gracious Speech debate.
I thank all right hon. and hon. Members who have made speeches today, but I pay particular tribute to all those who made maiden speeches. The time limit means that I cannot go through those contributions in as much detail as I would like, but I will briefly congratulate all those hon. Members. The hon. Member for Ealing Southall (Deirdre Costigan) spoke passionately about diversity, and adds to it with her strong Irish heritage. The hon. Member for Doncaster East and the Isle of Axholme (Lee Pitcher) is surely the first ever MP to have worked as a sewer baiter. My twins had their 10th birthday during the election campaign, so I know how the hon. Member for Kensington and Bayswater (Joe Powell) feels. It is painful, but it gets better—don’t worry. I wish him and his family well.
The hon. Member for Bristol Central (Carla Denyer) made a point of order earlier about energy infrastructure. Pylons have also been proposed in Suffolk, and I agree with her that there are other options; we are saying to the Government that we want to see them. I am grateful for her very passionate maiden speech. The hon. Member for North Antrim (Jim Allister) will, I am sure it is fair to say, be a doughty champion for his constituents.
It is brilliant to have, in the hon. Member for Tewkesbury (Cameron Thomas), a former member of the Royal Air Force in Parliament, especially in the current context. I was passionate about the global combat air programme when I was Minister for Defence Procurement—it shows the importance of our maintaining combat air competitiveness. I hope that he will contribute to the debate next Wednesday.
I was grateful to hear the cut and thrust of Scottish colleagues, including the hon. Members for Midlothian (Kirsty McNeill) and for Inverclyde and Renfrewshire West (Martin McCluskey), and, of course, my hon. Friend the Member for Dumfries and Galloway (John Cooper), who certainly punched above his weight in his maiden speech.
Arguably, we did not hear enough about rural matters in the King’s Speech, but the hon. Member for North Herefordshire (Ellie Chowns) certainly made up for that. She will clearly be a passionate advocate for farming and the environment in her constituency. I am grateful for all those maiden speeches, and I hope that we will hear much more from those colleagues in future.
Turning to defence matters, may I welcome the new foreign affairs and defence ministerial teams to their positions? As the shadow Foreign Secretary, my right hon. Friend the Member for Sutton Coldfield (Mr Mitchell), said, we will work with them where it is in the national interest—especially on supporting Ukraine for as long as it takes—as they did when they were in opposition. We welcome the cross-party spirit in which the Secretary of State for Defence set out his plans for a strategic defence review. We look forward to working with Lord Robertson, for whom I have the greatest respect, in a constructive and collaborative manner.
May I thank the Secretary of State for paying tribute to the two previous Secretaries of State, Ben Wallace and Grant Shapps, both of whom I had the privilege to work with as Minister for Defence Procurement? They can both be rightly proud of the enormous contribution that they made in supporting Ukraine, but they had something else in common: they were not afraid to make the unambiguous case for higher defence spending, and most importantly, they were successful. It helped that they had a Prime Minister who, as Chancellor, oversaw the largest spending review increase for defence since the cold war, and ensured that we went into the general election with a credible and fully funded plan to increase our defence budget to 2.5% of GDP by 2030.
Although I welcome the fact that the Labour Government have said that they are committed to 2.5%, we have nothing but uncertainty over their timetable. Indeed, this morning I was interviewed by Kay Burley of Sky News. She put it to me that the Government’s timetable is to reach 2.5% by the end of the Parliament—so 2028 or 2029. I said that that was not what I understood the public position to be, but she told me that she had been informed privately by the Government that that was the timetable, so I would be grateful if they confirmed now, in Parliament, what exactly the position is on this matter of great sensitivity.
Let me explain why the timetable for 2.5% really matters. When the previous Prime Minister announced that we would commit to 2.5%, he stated that his top priority was to replenish our munitions. That 2.5% figure enabled us to commit £10 billion of extra funding over 10 years to fund munitions, and it is a fact—I know this—that without a clear pathway to 2.5%, the Ministry of Defence would have had to make substantial cuts or deferments to programmes in order to afford that necessary replenishment of our munitions. That is why it is so significant, and why we need to know exactly what the position is. Is Kay Burley correct that the Government have told Sky News that they have a timetable for reaching 2.5% by 2028 or 2029? If not—if there is no timetable for 2.5%—how is the MOD going to fund its munitions strategy? Will those orders for shells and missiles for the Army, Navy and Air Force actually be placed this year? If not, what will be the impact on our world-leading defence sector, and above all, what will be the impact on our warfighting capability as a nation?
Without a clear pathway to 2.5%, what will be the immediate impact on the Department’s finances? Will the MOD continue to invest in cutting-edge capability such as directed energy weapons and hypersonics? That 2.5% would also have stabilised our two biggest defence programmes in light of the inflationary funding pressures that followed Putin’s invasion of Ukraine. This is all open and in the public domain—the Public Accounts Committee was talking about it in the lead-up to the general election. I am talking about the nuclear deterrent and the global combat air programme, our absolutely essential sixth-generation fighter programme. I am delighted that we now have consensus between the Government and ourselves on both the nuclear deterrent and GCAP, but can the Government confirm that delaying 2.5% will have no impact on the funding elements of either of those two major programmes? Can the Secretary of State or the Minister responding also confirm that the Secretary of State’s strategic defence review will conclude entirely before the next spending review commences, so that that review is threat-based, rather than forced on to the financial back foot by Treasury considerations?
Of course, if the Government’s public position is that there is no timetable to 2.5%, they will inevitably point to the old chestnut of the public finances being worse than feared, justifying the inevitable cuts or deferments of programmes that follow. I have the greatest respect for the Secretary of State, but we did hear some of that in his opening remarks. I am afraid that that excuse will not wash, though. Inflation is at 2% and on target; the economy is growing at a healthy rate and ahead of our competitors; wages are rising; unemployment is almost half what it was in 2010, when we took power; and the deficit is forecast to fall to just over 1% of GDP by the end of the current forecast period. [Interruption.] Labour Members chunter. They talk about missions; when we came to power, our mission was to save this country from bankruptcy, because once again, the socialists had run out of other people’s money.
The forecast deficit in 2010 was heading well north of 10%, so we did the right thing: we had to take difficult decisions, and we restored our public finances. Because of that, when the pandemic struck and the energy support had to be put in place, we could afford that enormous support. We are proud of that—proud of furlough, of saving those jobs and those businesses in every constituency. We did it because of those difficult decisions after the mess Labour left us in 2010. [Interruption.] Labour Members talk about the previous Prime Minister but one, but our strong economic legacy cannot be used to pray in aid a cover for cuts and deferments. [Interruption.] They quibble when we talk about a strong economic legacy. How else can we describe low unemployment, inflation at 2%, a low and falling deficit—half what it was when we took over from them—or the highest growth in the G7? That is a fantastic inheritance. Far from being an excuse for the cuts that the Government will have to come to, those are the features of the very improvement in economic conditions that made our pre-election commitment to 2.5% financially credible and deliverable.
We strongly welcome the Prime Minister’s staunch support for NATO, as evidenced in Washington, and we want him to succeed on his pledges to strengthen Britain’s defence. That is in our national interest, but it is actions that matter and by which the Government will be judged, and deferring and delaying 2.5% offers nothing but uncertainty to our armed forces at the worst possible time. If the Government have a private timetable to reach 2.5%, they need to share it; if there is not one, I urge the Secretary of State to persuade the Prime Minister and his Treasury colleagues to think again, because in this more dangerous world, higher defence spending is a matter of the utmost urgency for Britain.
(1 year, 10 months ago)
Commons ChamberLast month, the Prime Minister confirmed that this Government are committed to increasing defence spending to 2.5% of GDP, with a fully funded plan. Obviously, the public want to know that we will deliver value for money. That is why, in parallel, we are delivering a fundamental reform of acquisition through our new integrated procurement model.
Last week, we heard an announcement about the development of a radio wave drone killer. How is the integrated procurement model encouraging and accelerating the development of that novel technology?
My hon. Friend highlights the fantastic news, confirmed last week, that we are developing a new radio frequency directed energy weapon. It is an extraordinary capability that with one strike can inflict hard kill on multiple drones, at a cost of about 10p a shot. As for how that exemplifies the new approach, it is about the close relationship between industry, our scientists, and the Defence Science and Technology Laboratory. It is through the strength of the industry that we drive innovation and get the best kit into the hands of our armed forces.
We are pleased that there was an announcement from the Prime Minister, and that the Department has plans, but what we actually need is industrial capacity. When the Department is handing out orders for fleet solid support ships to Spain; when it has taken 18 months to order munitions; when The Times today shows a significant drop in the number of apprenticeships; and when the Department admits that it still will not take past performance into account when awarding future contracts, what confidence can we have that there will be the industrial capacity, and the real orders, to enable our defence industry to be competitive and supply our forces?
We are massively ramping up defence capacity. The right hon. Gentleman spoke about 155 mm shells; that issue is precisely why we have reached a contractual agreement with BAE Systems, and it will be ramping up production in Wales and north-east England. We are doing the same with ships, complex weapons and, as I said earlier, novel weapons and our science base. This is all about giving our armed forces the capability that will give them the cutting edge.
The global combat air programme will be a terrific boost to our defence and aerospace industries. To maximise success, we must keep the Typhoon production lines going until it comes on board, so what are Ministers doing to ensure that we maintain exports?
The Chair of the Select Committee asks an excellent question, and I assure him that there is an effort across Government to promote key defence exports, not least the Typhoon. A key factor in our new integrated procurement model is the need to drive exportability. That will not only ensure industrial resilience, but give us protection against overly exquisite requirements from the domestic side, which can result in delayed procurement. It is a good question, and we are focused on delivering greater defence exports.
Somerset is home to several organisations in the defence sector, such as Thales and Leonardo. However, companies in defence are concerned about the shortage in science, technology, engineering and maths skills in the UK; 48% of defence employers report a shortage of workers with engineering skills. What steps is the Minister taking, alongside Cabinet colleagues, to remedy those shortages and ensure that the UK defence sector remains competitive?
The hon. Lady asks a good question. There was a previous question about defence capacity; a key part of that is not just industrial capacity and buildings, but people. She is absolutely right. I visited Yeovilton in Somerset, where I met apprentices who are involved in the programme for our helicopters. We saw a demo of artificial intelligence that is helping us to improve the availability of our helicopters. Work is happening across defence and across Government, but we want to do more to ensure that we have the necessary apprentices and key skills in our defence sector.
Since the new shipbuilding strategy was launched two years ago, Ministers have given new build defence contracts to the Netherlands, Spain and, last week, France—just two days after the Defence Secretary declared that he was “determined” that new Navy vessels would be built “here in the UK.” He is the Government’s shipbuilding tsar; why will he not back UK shipbuilding?
I point out that a shipbuilding strategy costs money, and that is why we are committed to spending 2.5% of GDP on defence, unlike the right hon. Gentleman. On his key point about the shipbuilding strategy, I have been to Scotland and seen the amazing yards where we are building the Type 26 and the Type 31. I have been to Appledore, which is contributing to fleet solid support. We are committed to a UK shipbuilding sector. As the Secretary of State confirmed in his speech last week, by value of the future order book, this country is now No. 1 for naval exports.
We are making excellent progress on implementing the defence drone strategy, which I launched back in February. Our priority was to learn the lessons from Ukraine in order to build a sovereign industrial ecosystem that would enable uncrewed procurement at scale for the British armed forces. As for platform production, our immediate priority remains delivering drones to Ukraine, and I confirm that we have delivered 4,000 drones, with many more on their way in the coming months.
Does my hon. Friend agree that when it comes to the drone threat, a key priority has to be counter-drone technology, to defend our forces? Does he agree that directed energy weapons will have a key role in that regard?
My hon. Friend raises two excellent points. First, he is absolutely right: our drone strategy must include a focus on how we defend our armed forces against the threats that are out there. He is also right that a key part of the solution is directed energy weapons. In my response to my hon. Friend the Member for Broadland (Jerome Mayhew), I spoke about radio frequency directed energy weapons, but we have also announced our procurement of the laser weapon DragonFire. Using our new procurement system, we want to get that into the hands of our armed forces as fast as possible. That means having it on naval ships by 2027, using our new minimum deployable capability approach.
The skills of Northern Ireland’s workforce are renowned across the world. Northern Ireland would very much like to be part of the UK defence drone strategy, so I ask the Minister this simple question: what is being been done to ensure that the skills of Northern Ireland’s workforce are used for the benefit of the whole United Kingdom of Great Britain and Northern Ireland?
What a fantastic question. I can answer the hon. Gentleman simply. Just a few weeks ago, I was in Belfast at the Thales factory, which is manufacturing some of the best weapons available. It will be a key part of defence exports, and fundamentally a key part of future orders for the British Army. Northern Ireland is very much part of our defence industry.
I call Chris Stephens. He is not here. Can the Front Bencher answer the question as though it had been asked?
The Defence Infrastructure Organisation’s accommodation budget has not yet been finalised for the financial year 2024-25. The Government continue to invest significant sums to improve the quality of UK service family accommodation. The spend for 2023-24 on SFA maintenance and improvement was £384 million. An additional £400 million of funding over financial years 2023-24 and 2024-25 was announced as part of the defence Command Paper refresh last July.
The new head of infrastructure at the DIO, Commodore Leah Griffin, has written in her monthly newsletter to military families that the financial situation is “more challenging than ever”, and only urgent repairs will be considered. We can see that on the ground in my constituency. A service person’s partner who has had abdominal surgery has been unable to climb in and out of their bath to have a shower, and has been refused any kind of modification to assist them. That kind of financial challenge has a real impact on servicemen and women’s lives. Could the Minister look at the problem, and commit to ensuring a decent standard of accommodation for those people who put their life on the line for us?
The hon. Lady is consistent in raising accommodation issues. As ever, if she has a specific case, she is more than welcome to write to me about it, if she has not already done so. On funding, I gently remind her that we committed an additional £400 million, and because of our commitment to 2.5%, we can confirm that we are able to put another £4 billion into SFA over the next 10 years—a significant investment.
My hon. Friend will agree that it is important that our service accommodation be of high quality, but we should also support members of our armed forces in buying a home for themselves and their families. What support is there in the modernised accommodation offer to help soldiers, sailors and pilots get on the housing ladder?
My hon. Friend makes an excellent point, which speaks to my previous career, running a small business that helped first-time buyers. Forces Help to Buy has been a great success, but we also recently confirmed support with conveyancing costs, because the cost of getting on the property ladder includes not just the purchase but all the ancillary costs. We are committed to supporting our armed forces personnel, whether that means investing in the accommodation of those in SFA or single living accommodation, or helping those who want to get on to the property ladder.
Everyone who serves our country should live in a decent home, but last month, the independent Kerslake commission’s report on armed forces housing found that the majority of service personnel are dissatisfied with housing conditions, and very dissatisfied with the maintenance and repair service. One in three service personnel still lives in the lowest-grade service accommodation. The Government’s words simply do not match their action. Can the Minister honestly look service families in the eye and say that military housing under this Government is good enough?
The debate we have been having is about investment. We put in an additional £400 million, which means that we have been able to overhaul thousands of properties, performing upgrades to deal with damp and mould and putting in new heating systems. That costs money. Our commitment to 2.5% means that we will get an extra £4 billion over the next decade. Armed forces personnel know that Labour cannot possibly deliver that, because it will not match our commitment to 2.5%.
Currently, around 96% of service family accommodation meets or exceeds the Government’s decent homes standard. Only these properties should be allocated to our families.
As a base primarily for our Royal Marines, Chivenor in North Devon sees personnel stationed there for shorter periods of time than many other military bases. Will my hon. Friend consider additional support for high turnaround bases, perhaps including access to dental services for forces families where there are problems registering with local providers?
I very much enjoyed visiting RM Chivenor last summer and I congratulate my hon. Friend on being a consistent champion of the armed forces in her constituency. MOD dental healthcare provides dentistry for our armed forces personnel, ensuring that they are dentally fit and ready to deploy in the UK and overseas. The NHS provides dental care for civilians, which includes the families of armed forces personnel. I would be more than happy to arrange a meeting between my hon. Friend and MOD dental healthcare if she so wishes.
As the Department continues to sell off service accommodation for armed forces personnel, including at Whittington in my constituency, and has abandoned plans to allocate based on family size, does the Minister accept that this can contribute to lower recruitment and retention levels for the armed forces?
That is entirely why we are investing in our estate. I have mentioned the importance of the additional £400 million, and that is not abstract. It has enabled us to make a real difference to the accommodation of our armed forces by putting in thousands of treatments for damp and mould, and lots of homes are getting new doors, new boilers and so on. That is the difference the funding makes, and that is why our commitment to 2.5% is so important. It is not just about capability; it is about the homes of our armed forces personnel.
Last month, the landmark report into armed forces housing found that poor quality military accommodation had become
“a tax on the goodwill of service personnel and their families”.
Does the Minister agree?
The hon. Lady is welcome to send me a copy of that report, although I am not sure it is entirely impartial. I look forward to reading the conclusions—[Interruption.] Presumably it recognises that if we want better accommodation, we need to put the funding in, so I assume that its conclusions recommend that Labour commit to 2.5%.
We have considerably strengthened the UK’s defence in recent years and the Prime Minister’s announcement to increase defence spending to 2.5% signals our intent to invest further to ensure that our armed forces are equipped to deal with the threats we face. We are embracing innovation, investing in warfighting capability and bolstering the UK’s industrial base by reforming procurement.
The war in Ukraine shows that drones will play a crucial part in future conflicts, so what are the Government learning from what is happening on the battlefield to ensure that our armed forces have the equipment they need to defend us from drone attacks?
That is an excellent question from my right hon. Friend, and I am pleased that so many colleagues on this side of the House are asking about drones. At the heart of our defence drone strategy is the commitment to learn from Ukraine and from the frontline, and we are well placed to do that because we have joint leadership of both the drone capability coalition in respect of Ukraine with Latvia, and the maritime coalition—where uncrewed systems have been so important—jointly with Norway. There are two key steps we are taking. One is to improve governance, to cohere that learning across defence and into our armed forces. The other is to have a strong relationship with industry, and I can confirm that next month we will be holding an industry day in the MOD with drone companies from across the country.
I very much enjoyed my visit to RAF Valley in February. I can confirm that the RAF has already started its standard capability investigation process into the future of combat aircrew training. The comprehensive review will include the procurement of the replacement of the current advanced jet trainer capability. The investigation will consider options for aircraft, simulators and associated combined live and virtual training, such that we can continue to deliver world-class training capability for UK armed forces. It will provide evidence on likely cost and timing of the replacement training solution to the Hawk T2.
The hon. Gentleman asks about the supply of shells. I am delighted to tell to him that we previously confirmed the provision of 300,000 artillery shells to Ukraine. The latest figure is that this country has procured 400,000 artillery shells directly into Ukraine.
As the Secretary of State confirmed, we will have two A400M aircraft available for D-Day 80 on 5 June. The number of people who will be dropped will be 181, for the very good reason that that is the number of paratroopers who, at sixteen minutes past midnight on D-Day itself, landed and took the bridge that we named Pegasus.
In Fareham, we are rightly proud of our world-class aircraft carriers docked in nearby Portsmouth, providing thousands of jobs and being a huge credit to our Royal Navy. However, we all know that neither the Queen Elizabeth nor the Prince of Wales has as many jets, small warships or submarines as originally planned. Will the Minister please tell me how further defence spending will be used to bring online the full complement of F-35 jets, for example, so that our carrier strike group has the full capability to meet the modern threats of today?
My right hon. and learned Friend asks an excellent question. She is right about the importance of the carrier strike group. On the key point about the F-35s, we have confirmed 48 aircraft by 2025 and a further 27 by 2033, but in addition to that it is about working with our allies so that our carriers are at the heart of NATO operations, and ensuring that we have the maintenance and crews in place. As we saw recently, when we needed to get the second ship active, she was ready in eight days. That was a phenomenal achievement. It shows how effective we are at getting our carriers in place when we need them.
I would of course be delighted to meet my hon. Friend. On the subject of motorsport, I stress to him and the House that the MOD has a brilliant partnership with McLaren, jointly innovating to look at, for example, technology relating to electronic vehicles. I am more than happy to meet him and look into the matter further.
A constituent of mine who rents his home from the Ministry of Defence has recently been given notice to quit within two months, without any reason. He has never missed any rent payments and he has been unable to contact his landlord with a query on the instruction. Will the Minister meet me to discuss the situation?
My hon. Friend will appreciate the huge importance of what the UK defence industry is doing to help Ukraine get the equipment it needs. Can he update the House on what his Department is doing to increase the amount of ammunition getting to the front line in Ukraine?
My hon. Friend, who has Defence Equipment & Support in his constituency, has been a consistent champion of supporting Ukraine and he comes to every questions session to make that point. We are working hard to get more munitions in there; I mentioned 400,000 artillery shells, but I could list an enormous amount of ordnance. I can tell him and the House that we are not just doing everything possible ourselves, but cohering our allies and learning the lessons for our own armed forces. We have to be in this for the long haul, and the fight for Ukraine’s freedom is the right one.
On a point of order, Mr Speaker, I think my hon. Friend the Minister for Defence Procurement may have—inadvertently, I am sure—just misled the House of Commons. Pegasus bridge was captured in a glider-borne assault by the Oxfordshire and Buckinghamshire Light Infantry, not a parachute assault. I know that because I was at the D-day 70 with the then Prime Minister David Cameron at 12.16 am to commemorate the assault. I am sure it was an error by my hon. Friend; no one will want to believe that an MOD Minister tried to change the history of D-day because the aircraft did not work.
(2 years ago)
Commons ChamberThe most recent estimate shows that the Ministry of Defence supports about 209,000 jobs in industries across the UK. I am pleased to say that this figure will be boosted further by the confirmation last week that BAE Systems will partner with a firm in Australia to build its nuclear-powered submarines. That will support 7,000 additional British jobs across the programme’s lifetime.
Would my hon. Friend agree that MOD procurement from small British companies in rural areas such as North Devon can significantly increase defence-related jobs there, and enhance the local economy, especially when those jobs are in high-wage research and development and manufacturing industries? Will he commit to ensuring that the additional high-skilled jobs and economic benefits resulting from contracts are considered in future procurement decisions?
That is an excellent point from my hon. Friend, who is a champion of defence small and medium-sized enterprises in her constituency. As to procurement rules supporting SMEs such as those in North Devon, our new integrated procurement model will ensure that UK industrial capability and exportability considerations are included in procurement evaluation criteria for items such as the new medium helicopter. However, to ensure that we absolutely maximise opportunities for British industry, on Friday, I announced that we will undertake a rapid review of how Cabinet Office social value rules impact on the development of sovereign capability.
The Minister will be aware of the successful export order for high-value naval electric propulsion technology manufactured by GE in my Rugby constituency. That order is going to Singapore, and it was achieved with the assistance of the MOD and the Department for Business and Trade. Does that not show that support for this world-leading British technology enables new business in a fast-developing part of the world, while providing significant, new, high-value jobs for my constituents?
My hon. Friend asks an excellent question. I welcome the valuable contribution of GE in his constituency in supplying high-tech motors, including for Royal Navy ships, such as Type 26 frigates and Queen Elizabeth-class aircraft carriers. It is precisely because the Ministry of Defence recognises the importance of GE’s Rugby facility that we were pleased to reach an agreement with the company in 2019 to ensure that those motors continued to be manufactured there. Finally, he is right about export. It is such a key part of our new integrated procurement model, because it boosts industrial resilience and prosperity in constituencies such as his, while strengthening international alliances, such as, in this case, with the people of Singapore and the Singapore navy.
The Secretary of State will know that Huddersfield is a centre for defence industries; we have David Brown Gears and Reliance Precision, for example. I talk to them regularly. They say to me that one of the things that they miss is trained personnel. The Army, Navy and Air Force used to be the biggest trainer of personnel in the country. The diminished level of training in the armed services is reflected in the sector, which cannot get enough highly trained people to employ.
I am aware of those companies, which do an excellent job supporting the supply chain, particularly for our primes and for key programmes, especially naval programmes. I do not recognise the hon. Gentleman’s description of training. As he will be aware, defence is the biggest employer of apprentices in the country. We are doing everything we can to support that. The key is to have a close relationship with industry, and to bring it into our requirements early on, so that it can plan and deliver the supply signal, particularly for skills, to match our demand signal.
I would like to build on the incisive question asked by the right hon. Member for Rayleigh and Wickford (Mr Francois). More than 125,000 applicants to the British Army were rejected in the past five years. It has emerged that 70% of applicants were dropped or withdrew at the paperwork stage. More than 8,000 withdrew their applications, having waited for at least six months. What consequences will Capita face for this record, and when might the Army bring soldier and officer recruitment back in house?
I encourage the hon. Gentleman to direct questions about recruitment to the Minister for Defence People and Families. As to the company the hon. Gentleman talks about, my focus is on industry and supporting jobs, which the original question was about. I think we have a fantastic record, boosted by not only the exports I referred to earlier, but the ones that my hon. Friend the Member for Rugby (Mark Pawsey) was talking about.
Defence procurement can strengthen UK sovereignty, security and economic growth. We on the Opposition Benches believe that defence investment should be directed first to UK businesses, so that we make, buy and sell more in Britain. With that in mind, what steps is the Minister taking in his rapid review to ensure that social value considerations properly take into account the huge advantages to the UK economy of awarding more contracts to British businesses, so that we create more defence jobs here in the UK? That does not seem to happen at present.
I think there is considerable consensus, because I agree with the right hon. Lady about the importance of sovereign defence capability, and not just because of the economic benefits, although those are crucial. As we enter this era, which has been described as pre-war, it is vital that we have a UK sovereign industrial base. As the Ukrainians have learned, there are certain skills and capabilities that we will need in country, should we get to a hotter military situation, and that is why that is such a priority for us.
The Department uses a range of measures to assess the effectiveness of defence acquisition. We have reduced the average time taken to deliver our projects and programmes, but we must go further to drive pace, so last month I announced our new integrated procurement model.
The National Audit Office has previously highlighted MOD pilot training procurement failures, so is the RAF now meeting its pilot training quotas? Is the Minister satisfied with progress in that key area?
The hon. Gentleman asks a very important question. Of course, training is fundamental to bringing in the next generation to man our capability. I recently had the pleasure of visiting RAF Valley, where I discussed the issue with the RAF. It was able to confirm to me that, for the first time in a long time, there were more students taking up their places rather than in holds. That is a key metric in which we are seeing significant progress, but yes we want to go further.
Last March, the Government said that they would have their Ajax scheme ready between October 2028 and September 2029. Given that only 25% of armoured vehicles have been produced, are the Government on target to meet that deadline?
Notwithstanding the waste of £5 billion in procurement since 2019, will the Minister join the shadow Secretary of State for Defence, my right hon. Friend the Member for Wentworth and Dearne (John Healey) in a campaign to make in Britain, ensuring our industry and economy move together to support not just our defence, but our economy? How will he achieve that given that Tata Steel—to which we have paid £500 million —is cutting down its blast furnace capacity? How will we be able to proceed with the AUKUS contract and other contracts without virgin steel?
On the important question of steel, we do not expect the closure of Port Talbot to have a significant impact on defence, but obviously we will continue to monitor that situation. I would just gently point out that in 2022-23, the last year for which we have figures available, 89% of spend by the MOD with industry was with British industry. It will be an awful lot harder to make that level of spend if Labour is unable to commit to matching our spending commitments. If the hon. Gentleman is so concerned, perhaps he will join other colleagues on the Labour Benches in insisting that the shadow Secretary of State confirms whether he will match 2.3% of GDP now and our target of 2.5% as soon as the economy supports it.
May I take this opportunity to also place on record my thanks to the Minister for Armed Forces, my right hon. and gallant Friend the Member for Wells (James Heappey) for all the work he has done? It was a joy to work with him when I was in the Department.
I thank the Minister for Defence Procurement for his procurement review. It is an excellent document, moving forward in a pragmatic way. As part of that review, will he reassess where potential gaps might occur between old platforms being retired and new platforms being delayed? Does he agree that housing procurement—accommodation for our armed forces—is as much an operational capability as a tank?
My right hon. Friend makes an excellent point. He made a similar point in the debate on readiness last week about the importance of accommodation. I think we can all agree that there is a tendency in defence to focus on the big shiny platforms. Accommodation is a key priority; we are very committed to improving accommodation. We know that in the winter before this one performance was not satisfactory. That is why we put in extra investment of £400 million and announced a winter plan. I am pleased to say that we have made huge progress, for example in ensuring that thousands of properties have work achieved on damp and mould.
I am delighted that the MOD has confirmed the procurement of additional Chinooks, given that RAF Odiham, in my constituency, is the home of the Chinook force. However, it is also home to the fleet’s frontline maintenance, second line engine repair, and in-depth upgrade and modification. Given that 85% of the Chinook fleet sustainment takes place in the UK today, can I have my hon. Friend’s assurance that RAF Odiham will remain the home of the Chinook, and that there will be a similar, if not higher, level of maintenance of the new variants here and across Britain?
I greatly enjoyed my visit to Odiham, where my hon. Friend and I discussed a wide variety of issues. He is right to draw attention to our commitment to the procurement of 14 extended-range Chinooks—they have a huge range, of 1,000 miles—but there is also the industrial benefit to the UK and, of course, to my hon. Friend’s constituency. I can confirm that not only has that procurement made us a £300 million saving, but it will contribute £150 million-worth of benefit to the UK’s prosperity.
Will my hon. Friend update the House on progress made with UK-Ukraine defence manufacturing co-operation, especially with regard to removing the hurdles? Is there anything more that the Government should be doing?
My hon. Friend has championed this matter consistently. I am pleased to say that we held the first UK trade mission in December, and that there will be further such missions. I can confirm most importantly that, following that mission, UK defence companies and the Ukrainian Government have signed the following agreements. Babcock has been being awarded a three-year contract by the Ukraine ministry of defence to support and maintain two mine countermeasure vessels; BAE Systems and AMS Integrated Solutions have signed an agreement that will enable them to offer specialised artillery systems support directly to the Ukrainian armed forces; and Thales has signed a memorandum of understanding with the Ukrainian drone company AeroDrone, which will bring together the best of Ukrainian and Northern Irish engineering to deliver new capability to Ukraine’s forces.
Procurement of the new medium-lift helicopter has been characteristically suboptimal under the present Government, but this particular Defence Procurement Minister has managed, with his inverse Midas touch, to ensure that costs have grown from about £1 billion to £1.3 billion, delivery forecasts have slipped six delayed years to 2031, and the number of assets to be received has fallen from 44 to 35. Given that the forecast will inevitably slip to the right, service personnel will be under-resourced and the budget will almost certainly grow, what possible confidence can anyone have in this Defence Procurement Minister?
I will take no lectures from the hon. Gentleman, whose party has been unable even to procure a ferry. [Hon. Members: “It says here!”] I know the subject, and I can confirm to him, because I am very proud of this, that at my insistence our competition for the new medium helicopter will involve a far greater emphasis both on supporting UK industry and on supporting exports. It is by supporting exports that we secure industrial resilience and support for prosperity across the United Kingdom. Of course it is a competition, but we have three very good entrants.
The 2016 better defence estate plans earmarked Fort Blockhouse in Gosport for disposal, yet eight years later after numerous delays, the site is still rotting at the taxpayer’s expense. It is doing nothing for the local economy, the local community or the MOD. Will the Minister please update me on when can we will finally see some progress on that site?
I enjoyed my visit to my hon. Friend’s constituency, where we looked at a range of infrastructure and accommodation. I appreciate that she wants to see progress, but I stress that while we are engaging as closely as possible with Gosport Council on this and want to make progress, it is a complex site with significant defence events assets still in place relating to the Defence Infrastructure Organisation and the Royal Navy. I am committed to looking at what more we can do and to engaging further with her.
(2 years ago)
Commons ChamberNo, it is not. We have a much better solution, which is to legislate for an independent armed forces commissioner, like there is in Germany. They will be a voice for armed forces personnel and the families who support them, and will report to Parliament, not Ministers. In that way, we can reinforce the accountability of our military to this House and the public, as well as making it more responsive to those who serve. I will come to some points on that, if I may.
I pay tribute to all contributors to this debate, particularly those who are members of the two Committees on whose reports it is based. As they know, there are deep and long-running problems across defence, but I want to marshal my remarks into three main areas of findings in both reports: first, the hollowing out and underfunding of our armed forces; secondly, defence mismanagement and waste; and thirdly, the increasing lack of openness that we have seen recently from the Ministry of Defence.
On hollowing out and underfunding, my hon. Friend the Member for South Shields reminded us that it was the last Defence Secretary, the right hon. Member for Wyre and Preston North (Mr Wallace), who told this House last January that the armed forces have been “hollowed out and underfunded” over the last 14 years. These reports reinforce that sobering assessment of our UK military power and readiness.
The Defence Committee found that there are
“capability shortfalls and stockpile shortages”
across the forces, that resilience has been undermined by reductions, and that there is a
“crisis in the recruitment and retention of both Regulars and Reserves”.
Our armed forces are
“losing personnel faster than they can recruit them.”
The hollowing out and underfunding is getting worse, not better.
Will the right hon. Gentleman give way?
The Minister can have his say later.
The Defence Committee report says that capability gaps are growing, reliance on allies is increasing, and we now have the largest ever deficit in the MOD’s equipment plan, at £16.9 billion. The PAC concluded that there is an “unmistakable deterioration” in the MOD’s financial position.
Like the right hon. Member for Rayleigh and Wickford, I have brought along the Red Book. I have studied tables 2.1 and 2.2. The Treasury and the House of Commons Library confirm a reduction in defence budgets, which will be cut by £2.5 billion in cash terms for the next financial year. These are the budgeted baseline figures on which defence can plan, procure, deploy and develop capabilities—not the one-off add-ons for specific purposes, such as nuclear or Ukraine, which are the figures that Ministers too often use to inflate the figures on total spending and disguise the real budgets. This is where the country is left after 14 years of Conservative failure on defence, and the right hon. Member for Rayleigh and Wickford said that this is wholly unworthy of a Conservative Government. I say it is wholly unworthy of a British Government.
I will not. The Minister has 15 minutes in which to make his point. [Interruption.] Okay, I will give way.
I am very grateful to the right hon. Gentleman. I have a specific question: does he support our target of 2.5%?
As has been pointed out in this debate, 2.5% is an aspiration for when economic circumstances allow—there is no timetable, no plan and no credibility. The last time this country spent 2.5% of GDP on defence was in 2010, under a Labour Government.
I turn to mismanagement and waste. My hon. Friend the Member for Hackney South and Shoreditch said that mismanagement and waste runs widely across defence. The PAC report found that only two of the 46 MOD equipment programmes are rated as “highly likely” to be delivered on time, on budget and on quality. Many defence procurement programmes are being delayed and are over budget. Ministers are failing British taxpayers and British troops but, most concerning of all, they have no plan to fix this. My hon. Friend said that one of our major concerns is that the MOD is putting off decisions—serious threats, serious problems and a serious lack of action from the Government to fix them.
The third area I want to mention is transparency. Civilian authority over our UK military involves accountability to elected civilian Ministers and elected Members of this House. Reducing MOD transparency is a theme that runs through both reports. The Defence Committee says it is “unacceptable” and the PAC says the MOD has refused even to publish a full equipment plan this year—that is the Minister’s responsibility—despite
“undertaking the same depth of financial analysis as in previous years.”
That should worry all Members, and it has been a growing concern of mine for some months. Whether it is Royal Navy ships’ days at sea or MACA agreements struck with other Departments, data that had previously been published and released to me is now being withheld. Instead of responding to my questions, Ministers are now saying, “We will write to you instead.” I am currently awaiting 26 letters, some of them dating back as far as December.
There are, of course, legitimate security reasons why some information cannot be released, but there are also obvious political reasons why a Government nearing an election would not want some of this information to be made public.
The Defence Committee expressed an important and clear warning in its report. Threats are increasing, just as concern is increasing about the state of our armed forces not just from the members of these Committees and from Members on both sides of the House but from Ministers, too. The Minister for Security, the Minister of State, Foreign, Commonwealth and Development Office, the right hon. Member for Berwick-upon-Tweed (Anne-Marie Trevelyan), and even the Defence Secretary are publicly challenging their own Government’s defence policy in the press. The Defence Secretary is making arguments in the Daily Mail that he failed to win with the Chancellor. I feel for the Minister for Defence Procurement, who is almost the last man standing by the Government’s defence policy.
Labour will always do what is required to defend the country. If we win the confidence of the British people at the next election, our pledge is that Britain will be better defended under Labour. First, we will reinforce the protection of the UK homeland. Secondly, we will ensure that our NATO obligations are met in full. Thirdly, we will make our allies our strategic strength. Fourthly, we will renew the nation’s moral contract with those who serve. And fifthly, we will drive deep reform of defence, and we will direct defence investment first to British jobs and British business. This is how Labour will make our country secure at home and strong abroad. We will consult across the House in doing so because we want our plan to be not just Labour’s plan but Britian’s plan to be better defended in future.
I am grateful to all hon. and right hon. Members for their contributions, and I thank all those on the Defence Committee and the Public Accounts Committee for their thorough reports on armed forces readiness, defence equipment and inventory management.
I have a lot of time for the right hon. Member for North Durham (Mr Jones), but I think he said that our armed forces are a gnat on the backside of an elephant.
No, I did not. If the Minister had actually listened, what I said is that our contribution in the event of a crisis in the South China sea would be a gnat on the backside of an elephant. That is very different from what the Minister said.
I am grateful for the right hon. Gentleman’s clarification. Either way, I think we can all agree that it is important that we understand the extent to which our armed forces are ready and are out there serving the country as we speak.
Our continuous at-sea nuclear deterrent is entering its sixth decade of service, and our armed forces have helped us to become Ukraine’s most front-footed ally. We have trained more than 60,000 Ukrainian military personnel since 2014, and we are delivering more than £7 billion of military aid to Ukraine within our overall aid package worth almost £12 billion. That support is unwavering, with the recent announcement of our latest £2.5 billion package of military support for Ukraine being a £200 million uplift on the previous two years. Beyond our support for Ukraine, our armed forces are participating in every single NATO mission.
I am grateful to the Minister for allowing me to intervene. I did not apply to speak in this debate because I could not be sure that I would be here at the end. Will he impress upon the House how our aid to Ukraine is vital because, if Ukraine successfully thwarts Russia, all those dread scenarios about an attack on NATO will not happen? Similarly, although President Trump is a worry, it is at least a relief that he has begun to say that, provided Europe does its bit, he will continue with America’s support for NATO, should he be elected.
My right hon. Friend makes an excellent point. The hon. Member for Rochdale (George Galloway) accuses us of imperialism in how we deploy our armed forces, but the whole purpose of our support is precisely to help Ukraine resist the imperialism of the Kremlin that he has shamefully supported while condemning what he calls the “Zelensky regime”. We heard him say it, and it is absolutely shameful.
The hon. Gentleman did not give way to anyone so, if he will forgive me, I will continue.
My right hon. Friend the Member for New Forest East (Sir Julian Lewis) made an excellent point that we have heard a change of tone from Donald Trump in recent days.
The Minister says it is important to understand how ready our forces are, so can he tell us why key information on readiness is no longer published and why none of it was shared with our Committee?
I am happy to engage with the Committee, as I did during the week on artificial intelligence. There will always be a balance to be struck between what we can share and where we have to recognise the sensitivity of defence.
From the High North to the Mediterranean, we are deploying 20,000 service personnel from our Navy, Army and Air Force on the NATO exercise Steadfast Defender, which is one of the alliance’s largest ever training exercises. It is a valuable opportunity to strengthen interoperability between us and our allies.
I am happy to report that, as the right hon. Members for Wentworth and Dearne (John Healey) and for Warley (John Spellar) said, overnight we have had confirmation that a new defence and security co-operation agreement has been signed with Australia, which will make it easier for our armed forces to operate together in each other’s country. It will also help facilitate UK submarine crews to visit Australia as part of AUKUS.
A large number of points have been made in this debate, and I will try to take as many as I can. The Chair of the Defence Committee, the right hon. Member for Horsham (Sir Jeremy Quin), and several others, particularly the right hon. Member for Warley, talked about the importance of industrial resilience, and I totally agree.
The right hon. Member for Warley made an important point about finance. We must not forget the private sector’s role in investing in defence. We have seen commentary on environmental, social and governance, on which he wants to see cross-Government work. I am pleased to confirm that, with my Treasury colleagues, we held a meeting at Rothschild’s in the City to see what more we can do, and I am confident that we will be saying more on this important point about how we make the case for investing in defence as a way of investing in peace.
On ESG, there have been many references to the second world way today. Is it worth reminding the House and the country that, if we had not had a defence industry building Spitfires and Hurricanes in 1940, this debate would not be taking place? In fact, this place would no longer exist.
My right hon. Friend makes an excellent point. It shows why I want to see us supporting our sovereign capability, because where the Spitfire was there in the 1930s, we hope that the global combat air programme will be there in the 2030s.
As my right hon. Friend has already intervened, I hope he will allow me to make some progress and refer to comments from colleagues.
Obviously, there has been particular debate about spending. The shadow Secretary of State was unable to answer whether Labour would match the figure of 2.5%, but a number of my colleagues wanted us to go further and faster. This point was put well by the hon. Member for Tiverton and Honiton (Richard Foord). The Chair of the Defence Committee and others have suggested that we should look back to the sort of GDP figures in the cold war, although they did not necessarily say that we should go to exactly those amounts. However, as was said by the hon. Gentleman, who I believe was in military intelligence, in those days almost all of eastern Europe was an armed camp full of Soviet divisions, whereas now those countries are in NATO, so the situation has changed profoundly.
As was rightly said by my right hon. Friend the Member for Elmet and Rothwell (Sir Alec Shelbrooke)—one of my predecessors as Minister for Defence Procurement—if we increase defence by a significant amount, the money has to come from somewhere. An increase from the current level of about 2.3% to 3% equates to £20 billion, which is not a small amount of taxpayers’ money. Even an increase to 2.5% equates to an extra £6 billion. So it is Government policy to support that but to do so when we believe the economy can support it on a sustained basis.
My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) made a passionate speech about how there had, in effect, been a cut to defence spending in the Budget, and several other Members said the same. I do not agree, although I accept that there is a debate about it. It is about the difference between the main estimate and the supplementary estimate, and some people have said it is about the inclusion of nuclear. To me, the nuclear deterrent is fundamental to defence, so of course it should be in the defence budget. We are not going to take out GCAP or frigates, and we are certainly not going to take out the nuclear deterrent, which is at the heart of the UK’s defence.
I like a lot of what the Minister is saying. It is right to say that we have, in Poland, Finland and Sweden, allies in NATO that produce great capability in terms of dealing with the threat from Russia, but since 1989 China, now one of the two biggest economies in the world, has gone on to be spending £232 billion alone on defence—and that is just the official number. We also now have a nuclear armed North Korea, with Iran making its way in the same direction. The world picture is darkening. That may not necessarily “directly impact” us, to use the words of other hon. Members, although I think it does, but it has indirect impact on some of our allies and on where they need to place their resources. It is a real concern and we should not forget that.
I am grateful to my right hon. Friend for that. It shows why I have repeatedly said that we need to reform defence procurement because of the need to stay competitive with our adversaries.
I agree with the Chair of the PAC, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), and my hon. Friend the Member for Devizes (Danny Kruger), that we cannot just look at what we want to spend and at the future aspiration; we have to look at how we spend the money that we have better. That is why on 28 February I announced our new integrated procurement model, to completely overhaul our approach to acquisition. I said in my speech—and I stand by this—that the current delegated procurement model, under the Levene reforms, has created an inadvertent tendency towards over-programming: as soon as there is financial pressure on the equipment plan, such as we have had through inflation, the single services compete to get their capability on contract. By contrast, the very definition of our integrated approach is pan-defence prioritisation, as we are seeing in practice in our pending munitions plan, which will address many of the concerns of right hon. and hon. Members about getting our industry up to spec in terms of missiles and other key munitions. Let me be clear that such prioritisation would be challenging even if we went to 2.5%, such is the nature of defence.
A particular priority of our new acquisition model, as was referred to by the Chair of the Defence Committee, is spiral development: accepting 60% or 80% of requirements rather than 100% exquisite. The key to that is ramping up our engagement with industry, so we have held far more engagement events with industry at a secret level. Just this week, for example, we have held engagement between the strategic command and industry about cyber and electronic warfare—at a secret level, because we want to empower industrial innovation.
I have also said that exports are a key part of getting our industrial base as resilient as possible. So I am delighted to confirm the overnight news that BAE Systems will partner in Australia to build its nuclear-powered submarines. This is a major moment for AUKUS, and the collective submarine-building will support 7,000 additional British jobs across the programme’s lifespan.
My right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) and the hon. Member for South Shields (Mrs Lewell-Buck), who this week chaired the Sub-Committee on AI, both rightly stressed the importance of technology. To see that, one need only look at the situation in Ukraine and at the extraordinary propensity of electronic warfare, which underlines how the battle space has changed. So a key part of our system will be about learning the lessons from the frontline as rapidly as possible, as we spiral our own developments in response. We are learning those lessons. For example, as part of its drive to incorporate autonomous platforms flying alongside crewed fighters, the RAF is now progressing to procure drones to overwhelm an adversary’s electronic warfare defences. That underlines an important point: that advantage in future warfare and uncrewed combat, will not necessarily be gained by individual platforms and technologies; it will be their smart integration, across crewed and uncrewed systems, that will enable us to develop a force fit for the future. That is why I believe we need an integrated approach to procurement.
To conclude, the brief snapshot of military exercises that I have outlined today does not do justice to the breadth and reach of our armed forces. They are more than ready. They are out there, deployed all over the world, keeping us safe and defending our interests. Meanwhile, the reforms we have made to procurement will help us adapt to emerging threats and evolving technological possibilities. That is a key lesson from Ukraine and from our Defence Command Paper.
This Government will continue to back our armed forces with record levels of defence spending, an ambitious 10-year equipment plan and by forging a new partnership with industry to co-develop cutting-edge capabilities. It is a plan that will ensure that our defence industrial base is more resilient and our armed forces are better equipped. It is a comprehensive strategy for our national security, and I commend it to the House.
(2 years ago)
Written StatementsUnder the Defence Reform Act 2014, the Secretary of State for Defence has a legal obligation to announce whether he will accept the Single Source Regulations Office recommendation for the baseline profit rate to be used in single source defence contracts for 2024-25. He must make and publish this decision by 15 March 2024. Element 2023-24 rates 2024-25 rates Baseline profit rate (% on contract cost) 8.29% 8.24% Baseline profit rate to apply to contracts between the Secretary of State and a company wholly owned by the UK Government and where both parties agree (% on contract cost) 0.038% 0% Fixed capital servicing rate (% on fixed capital employed) 2.9% 3.26% Working capital servicing rate (% on positive working capital employed) 1.67% 3.1% Working capital servicing rate (% on negative working capital employed) 0.51% 1.61% SSRO funding adjustment 0.038% N/A
In making its recommendation, the Single Source Regulations Office must aim to ensure that good value for money is obtained in Government expenditure on qualifying defence contracts, and that suppliers who are party to qualifying defence contracts are paid a fair and reasonable price under those contracts.
This year, I, the Minister of State for Defence Procurement, on behalf of the Secretary of State, have agreed with the recommendation from the Single Source Regulations Office.
Therefore, today I am announcing that I have set the baseline profit rate for single source defence contracts at 8.24%, in line with the rate recommended by the Single Source Regulations Office. This a decrease of 0.05% from 2023-24. I have accepted the methodology used by the SSRO to calculate these figures. The underlying rate has fallen 0.35 percentage points from 8.44% to 8.09%. A full explanation of the SSRO methodology is published on its website.
I am also announcing the capital servicing rates and the removal of the SSRO funding adjustment as recommended by the SSRO, which can be found at table 1 below. These rates have been published in the London Gazette, as required by the Defence Reform Act.
All of these new rates will come into effect from 1 April 2024.
Table 1: Recommended rates agreed by the Secretary of State for Defence.
[HCWS345]
(2 years ago)
Commons ChamberUrgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.
Each Urgent Question requires a Government Minister to give a response on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
(Urgent Question): To ask the Secretary of State for Defence to make a statement on the state of the UK armed forces.
It is an honour to set out how our outstanding armed forces are doing incredible work around the world, protecting the UK and our allies. That includes operating on every single NATO mission, supporting Ukraine against Putin’s aggression, and tackling Houthi attacks on shipping in the Red sea. We are spending a record amount on defence. That includes an extra £24 billion in cash terms between 2020 and 2025, which is the largest sustained increase since the end of the cold war. The Government fully recognise the growing security threat, which is why we have set out our longer term aspiration to invest 2.5% of GDP on defence when fiscal and economic circumstances allow. We are already spending more than 2% of GDP on defence, exceeding our NATO target. We are delivering the capabilities that our forces need, significantly increasing spending on defence equipment to £288.6 billion over the next decade, and introducing a new procurement model to improve acquisition.
For the Royal Navy, that includes Dreadnought, Astute and AUKUS submarines, as well as fleet solid support ships Type 26 and Type 21 frigates. For the Army, Future Soldier will deliver the largest transformation in more than 20 years, re-equipping and re-organising to be more deployable and lethal. The RAF will become an increasingly digitally empowered force, with the Global Combat Air Programme providing a sixth-generation fighter jet capability, building on that provided by our Typhoons and F-35 fifth-generation aircraft today. Our Defence Command Paper 2023 set out our plan to deliver a credible war fighting force, generated and employed to protect the nation and help it prosper now and in the years to come. We will embody a fully integrated approach to deterrence and defence, including across all domains and across Government, by exploiting all levers of state power, and with allies and partners.
I pay tribute to HMS Richmond’s actions over the weekend, defending shipping in the Red sea against a large-scale Houthi attack. Those are the demands that our armed forces face as threats increase.
The Defence Secretary owes the public and Parliament an explanation. He said that we are moving into “a pre-war world”, and ahead of last week’s Budget he wrote to the Chancellor and stated that
“we must take bold action in your Budget to commit to defence spending increasing to 2.5% in 2024. It would re-establish our leadership in Europe.”
But there is a growing gap between the Defence Secretary’s rhetoric and the reality for our armed forces, who are charged with preparing for this new dangerous era. In the Budget there was no new money for defence, nothing new for Ukraine, and nothing for Gaza or the UK’s operations in the middle east. Worse, both the Treasury and the House of Commons Library confirm that the defence budget will be cut by £2.5 billion in cash terms in this next financial year. The 2.5% of GDP, which the Minister referred to, was not mentioned once in the Treasury Red Book; the last time this country spent 2.5% of GDP on defence was in 2010 under a Labour Government.
While Putin wages war in Europe, Ministers are warring with each other. Challenging defence policy in public, the Minister for Security was on TV this morning calling for 2.5% now. That is a serious breakdown in collective ministerial responsibility, but I am most concerned about the serious state of the UK armed forces. What signal does it send to our adversaries when our forces have been hollowed out and underfunded for the last 14 years; when the Public Accounts Committee finds the largest ever funding deficit in the MOD’s equipment plans; when the British Army has been cut to its smallest size since Napoleon; when forces recruitment targets have been missed each and every year for 14 years; and when satisfaction with service life has hit a record low?
I have one simple question for the Minister: where is the plan for better defending Britain? It is clear that our armed forces cannot afford another five years of a Conservative Government.
I am grateful to the right hon. Gentleman for his comments about HMS Richmond. I am sure that we all agree and pay tribute to our Royal Navy personnel, who are there ultimately to defend not only themselves but freedom of navigation for the rest of the world. We should recognise the importance of the role that they are undertaking on behalf of our Government.
The right hon. Gentleman talked about the funding for next year. To be clear, that will represent a 1.8% increase in real terms and not the cut that he suggested. If we spend the money that we expect, it will amount to £55.6 billion—about 2.3% of GDP, which is traditionally how we measure our spending. That is significantly above the just under 2.1% in 2019, so it is a significant increase as a percentage of GDP.
The right hon. Gentleman also talked about recruitment, which is an important issue. My right hon. Friend the Minister for Defence People and Families is doing a lot of work on that and, as the right hon. Gentleman will be aware, in January we saw the highest number of applications to the Army in six years. A more positive picture is developing, recognising the importance of the mission. We should not talk down our armed forces when we expect people to apply and to want to be recruited into them.
I note the range of comments about the 2.5% and want to make several points. The first is that the right hon. Gentleman said that we had not spent that percentage since Labour were in power. Well, something extraordinary happened at the end of their time in power: they crashed the economy, we had a full-on banking crisis and a letter was left for our Government saying “there is no money.” It is no surprise that we had to take difficult decisions, but despite that we have shown our commitment to the armed forces.
When he was Chancellor of the Exchequer, the Prime Minister approved the largest ever increase in defence spending since the cold war, and there has been further money since then in the Budget. Of course, we are committed to 2.5% when the circumstances allow. For all the right hon. Gentleman’s bluster, he has not even committed to matching our current spending on defence, let alone 2.5%; we challenged him on that at Defence orals and he was not able to give any commitment whatever to spending.
The public know where we stand: 2.3% in the year ahead and 2.5% when the economics allow. We do not have a clue where Labour stands.
I agree with the Minister that we have extraordinarily capable armed forces whose productivity is second to none. However, as is set out in “Ready for War?”, our Defence Committee report, they are extremely engaged globally and have a great deal to do, much of which is invaluable. At the same time, they are having to prepare for the “pre-war” phase to which the Defence Secretary referred. In that context, does my hon. Friend agree that the timing of the 2.5% target—that is very welcome and a very good first step—needs to be determined by the level of threat as a priority expenditure, rather than as economic conditions allow?
I do not think that we can commit to levels of public expenditure or tax cuts, for example, without being confident that the economy can support them in a prudent fashion—an entirely reasonable and rational approach. However, I totally agree with my right hon. Friend the Chair of the Defence Committee. We all recognise that we are living in a more dangerous world—the Secretary of State has alluded to the threats we face not just in Ukraine but in respect of other adversaries around the world—and I totally understand why there is the wider debate on what we spend, but we already have a significant budget, and we must ensure that it is spent well and delivers value for money. That is why a key priority for me is reform of our procurement system so that we can ensure that our armed forces can prioritise effectively. Ultimately, it is the capability that we have now that will determine our ability to warfight.
I congratulate the shadow Defence Secretary on securing the urgent question and join him and the Minister in remembering those on HMS Richmond.
On Friday, the Public Accounts Committee’s found that the
“MoD is increasingly reliant on the UK’s allies to protect our national interests. NATO membership deters hostility, but the report warns such deterrence can only be effective if our Armed Forces are credible.”
To paraphrase the report, given that many of our allies face similar capability challenges, is the Ministry of Defence developing mitigations for dealing with the risk of allied support being curtailed or withdrawn if, critically, there is a change of Administration in Washington come November?
To be fair to the hon. Gentleman, he makes an important point about the importance of alliances. NATO is fundamental to the defence of our country, the wider western world and our allies beyond. Critically, to put this in context when we talk about the state of the armed forces, which is what the urgent question is about, and the alliances that he referred to, let us remember that we have just launched Steadfast Defender, which is one of the largest ever NATO exercises, involving 96,000 personnel, of which almost 20,000 are from the UK. I believe that we make up 40% of the land forces. That is an extraordinary contribution by the UK. We also offer our nuclear deterrent to NATO. We are supporting our allies, we stand together under article 5, and we should all do everything possible to support NATO in its 75th year.
May I commend to anyone interested in the historical context a report produced by the Defence Committee in July in 2019 called, “Shifting the Goalposts? Defence Expenditure and the 2% Pledge: An Update”, HC 2527? It shows that for the last 20 years of the cold war this country spent between 5.6% and 4.1% of GDP, calculated in the same way we do today, on defence. Does that not show both sides of the House that we have an awful long way to go now that there is a hot war in Europe before we match what we used to do when there was a cold war in Europe?
My right hon. Friend put that eloquently, and he speaks with great passion and expertise on the cold war and our recent history. As he knows, in the cold war era we had the working assumption that an invasion—or certainly a confrontation—could be launched on the border in Germany very quickly. We had a huge number of forces deployed, and given that threat we spent, understandably, a higher percentage of GDP on defence. Since then, we thought we had a more peaceful era. Those illusions have been shattered by Putin, and we have all had to wake up to that. That is why we have done so much to support Ukraine and, yes, why we will do everything possible to support our armed forces.
The Secretary of State said he wanted to ensure that
“our entire defence ecosystem is ready”
to defend, but here is the reality of our armed forces under this Government: capability delays and shortfalls, stockpile shortages, losing personnel, woeful recruitment levels, a £29 billion black hole in finances, and, as of last week, no real boost to the MOD’s budget. The Secretary of State is failing, isn’t he?
When the hon. Lady talks about procurement and delays, I would have thought she could at least recognise the support we have given to Ukraine, where we have procured an extraordinary amount of ordnance into the country to help Ukrainians to defend themselves. Much of that has been at great pace, not least from gifting, for example, our AS-90s, a whole range of munitions, and 300,000 artillery shells. Had it not been this country’s role, I think we can safely say that Russia would have been successful.
Whether it be covid, the war in Ukraine or the middle east, it is clear that our world is becoming more dangerous, not less. Many of us in the House have been calling for increased defence spending and for a recognition of the symbiotic relationship between our economy and security. That has been illustrated by what has been going on in the Red sea. That is why we need to spend more, but how might we spend it? Will the Minister consider a defence review, because Ukraine continues to illustrate how the character of conflict is changing? On that note, will he agree that the biggest international security threat is Russia as it moves to a war footing? We have done well to slide across £12 billion of support, but unless more is done, the tide will turn in Ukraine and that will change the economy and security of the whole continent.
My right hon. Friend, as ever, makes some excellent points. He is right to mention how we spend the money. It is one thing to talk about GDP figures and spend, but what are our priorities? As Procurement Minister, and as I set out in my recent statement on the integrated procurement model, I want much greater use of data, particularly from the frontline in Ukraine, to inform our own defence industry so that we can bring forward at a much greater pace those technological innovations, whether in uncrewed systems or complex weapons, that will truly help strengthen our defence. As for a review, he will appreciate that is a matter for the Prime Minister and the Secretary of State for Defence, but he makes an excellent point.
We have the smallest Army since the Napoleonic era, so can I press the Minister on this? Was a cut of £2.5 billion in cash terms announced in the Budget last week?
I hear this point about Napoleon many times. If it is the Labour party’s position to significantly increase the size of the standing Army, that is a massive financial commitment. The hon. Gentleman needs to have a word with the shadow Defence Secretary and the shadow Chancellor, because as yet they have not once committed to current spending levels, let alone 2.5% when the economic conditions allow.
I strongly support my hon. Friend’s powerful commitment to defence in general, but I am rather disappointed by his tepid promise about moving to 2.5% of GDP. I also find myself in the career-wrecking position of strongly agreeing with the shadow Secretary of State for Defence, who put the arguments extremely well. The fact of the matter is that last week’s Budget reduced both kinds of defence expenditure by £2.5 billion, and we are not facing any kind of move towards 3%, which no less a figure than the former Secretary of State for Defence, my right hon. Friend the Member for Wyre and Preston North (Mr Wallace), publicly called for last week. Two serving Ministers have said how disappointed they are by the Budget. By what possible arithmetic does the Minister conclude we are in fact increasing defence spending, when every expert in the world says that we patently are not?
I am grateful to my hon. Friend, who always speaks with such expertise on defence matters. First, on 2.5% being tepid, we have to be able to sustain that. If it was a one-off, the Army, the Navy and the Air Force would not be able to plan accordingly. It has to be an investment that we can sustain and, thereby, the economy of the country has to be able to sustain it. Forgive me for sounding like I am still in my previous job at the Treasury, but the country has to be able to afford it, and we need to be prudent in the commitments we make on public expenditure, not least so that they are sustainable in the long term and not a one-off, which would be the worst thing we could do.
The Minister keeps saying we should not talk down our armed forces, but we are not; the armed forces are doing a splendid, brilliant job. What we are doing is running down what the Government are doing, which is not enough—let us put it that way. We have the greatest threat since the cold war. We have war in Ukraine, the middle east in disarray and China increasing its spending. The real blame for the situation with defence lies with the Prime Minister and the Chancellor. Does the Minister think, in these circumstances, that most reasonable people would have thought it okay not to put extra resources in the Budget for defence?
When the Prime Minister was Chancellor, he oversaw the biggest increase in spending since the cold war. The current Chancellor significantly increased defence spending in the previous Budget for the years ahead. We are not cutting defence spending. As I said, if the hon. Gentleman takes the figures in totality, it will rise by 1.8% in real terms. If we spend what we expect to next year, we will spend 2.3% of GDP on defence—around £55.6 billion.
May I make a suggestion to my hon. Friend? It is perfectly clear that the MOD wants to increase defence spending, as does the Opposition spokesperson, the right hon. Member for Wentworth and Dearne (John Healey), if we are to take his criticisms at all seriously. Is the right question to ask whether we are spending enough to prevent a war, not to fight a war? How much more do we need to spend to be an effective deterrent, which we do not appear to be at the moment?
As I said, it is important that we engage in the key capability questions. It is one thing to talk about spending more, but what capabilities would we purchase, and where are our shortcomings? It must be a new development at the heart of defence to have a constant feedback loop of data on integrated warfighting and what is happening in Ukraine, with the armed services and with industry, so that we know what capabilities will make the difference. To give one example, we have seen the extraordinary impact of uncrewed weapons in Ukraine. We have made assumptions about technologies in our equipment plan, which are probably far more expensive than those options. We need to look at this from a warfighting point of view. To support deterrence, the important thing is to back our armed forces. That is why we have our spending commitment, but it has to be balanced against the ability of the economy to support it and sustain it in the long term.
The Times recently illustrated that the British Army will shrink in size to 67,000 within the next two years due to the current recruitment and retention crisis. Our senior and close allies, including the US, have expressed their grave concerns, and even senior Conservatives have conceded that our armed forces have been hollowed out since 2010. As threats to the UK increase, why have the Government shrunk our Army to its smallest size since Napoleon?
The hon. Gentleman talks about a crisis in recruitment but, as I said, January saw the highest number of applications to join the Army for six years. That is an important and positive development. On the size of the armed forces, we should talk about not just the number of soldiers, but the amount of accommodation to support them, and the platforms, the weapons and the capabilities. That is an extremely expensive undertaking. If the hon. Gentleman thinks that that is the right thing to do, he needs to lobby his colleagues on his own Front Bench, because they have not committed to spending 2% of GDP on defence, let alone 2.5%.
As a former Armed Forces Minister, I pay high tribute to His Majesty’s armed forces but not to His Majesty’s Treasury. The Red Book—the Budget Bible—shows clearly in tables 2.1 and 2.2 that next year’s core defence budget has been cut by £2.5 billion. That is true. It ill behoves any Government—let alone one that purports to call themselves Conservative—to use one-off payments to Ukraine or overspends in the nuclear budget from the consolidated fund and pretend that they are part of the defence budget, when everyone in this House knows that they are not. As the son of a D-day veteran, I say to the Government—if not to the Minister, for whom I have great regard—more in anger than in sorrow that what they have done is deeply dishonourable, and they should be ashamed of themselves.
My right hon. Friend was a Defence Minister, and I respect his great passion about all things related to the armed forces, particularly because of his father. When we spend on the nuclear deterrent or on supporting Ukraine—purchasing weapons and providing ordnance, ultimately to help defend ourselves—that is legitimately described as defence expenditure. After all, how else are we to pay for that, and from which budget? Compared with last year, there is a real-terms increase of 1.8%, which if we spend what we expect will amount to £55.6 billion and 2.3% of GDP.
Many citizens will be rightly concerned about the use of the phrase “pre-war world”. What requires clarification is not simply the scale of the British military in years to come, but where the armed forces are currently deployed, and what they are doing. Are British servicemen firing weaponry in Ukraine, as suggested by German ministerial sources? Are British forces assisting Israel in its genocide through the provision of military intelligence? Knowing the answer to those questions is fundamental to our security, and indeed to our knowing whether the UK is upholding international law, never mind it being a basic democratic right, and something that our citizens are entitled to know.
The hon. Gentleman knows that we do not comment on speculation, particularly on sensitive operational matters relating to the armed forces, and that is the right approach. Yes, we have a duty of candour, but we also have to protect those serving on the frontline.
The fighting in Ukraine proves that size matters. The Minister should reconstitute the Territorial Army, which demonstrated that, with economy, quantity had a quality all of its own.
My right hon. Friend has a quality all of his own, as shown in how he puts his questions. He makes a very good point. We tend to talk about the Regular Army, but we must remember our reserves. They are incredibly important and we pay tribute to them. Ukraine has shown that this country is able to make an extraordinary contribution. This is speculating, but it is likely that if it had not been for the contribution we made, Ukraine would not have been successful in repelling the Russians as far as it has done.
So there we have it: President Putin will be ordering his officers to stop sabre-rattling with the west because the British are changing their procurement rules! The reality is that the Minister cannot fight the war he wants to fight with the capability he has. He will be presented with the conflict that develops, and we need the capability and resilience to meet threats that emerge. What assessment has he made of the threats to the United Kingdom, and how will he meet those threats with the armed forces he has?
The hon. Gentleman’s rather trite comment on procurement is a total failure to understand how the military works. He wants to talk about the deterrent; everything from our nuclear submarines right down to small arms is part of the procurement system. They all have to be procured. My priority is ensuring that we have a procurement system that is agile, gets equipment to the frontline as fast as possible, and can engage with the latest technological developments; think of lasers and uncrewed systems. Technology is moving at an extraordinary pace. We have used technology to support Ukraine so far. We have provided 4,000 drones and will increase our support to around 10,000. We are doing everything possible to support Ukraine. All that is done through the procurement system—if I may say so, highly effectively.
I join my hon. Friend in commending the professionalism of our armed forces, and in pointing out that Labour has not committed to an increase in defence spending, but may I remind him that the first duty of any Government is to ensure that defence spending primarily reflects the threat, rather than the ability to pay? We have a war in Europe. We have an increasingly belligerent Russia. I chair the defence committee of the 1922 committee. Conservative Back Benchers are very much behind the idea that we need to increase defence spending. What does the Minister think it will take to increase defence spending?
First of all, we have increased defence spending. Crucially, the last spending review saw the largest allocation of spending to defence since the cold war. Yes, we have set an aspiration of 2.5%, and the answer to when that will happen is: when economic conditions allow. It would be imprudent to commit to such a level of spending if we did not think it could be sustained. The worst thing would be to have that spending for maybe one or two years, and then have to go backwards because we did not think it was sustainable. This is about balancing affordability against commitment, but we need to be absolutely clear that at over £50 billion, this is the most we have ever spent on defence. There is an extraordinary effort in support of Ukraine, and we have highly capable armed forces who are making an extraordinary contribution to NATO, including through the latest NATO exercise, and will continue to do so.
I do not want to make too much play of your earlier remarks, Madam Deputy Speaker, but I was born on the night the House was bombed and this Chamber was burned out. As I have listened to the Minister, I have been saying to myself—I hope that he will recall this—that he represents the party of Winston Churchill and Margaret Thatcher, but now that the world is more dangerous than I can recall it being in all my years, we are not able to defend the country adequately. I say to Members on both sides of the House that this is a wake-up call; we must act now.
I pay respect to the hon. Gentleman’s longevity and seniority, and to the fact that on the day he was born, the House was bombed, during whichever war it was—I think it was the second world war. He said that we are unable to defend ourselves, and I totally and utterly reject that claim. If Putin had succeeded in his invasion of Ukraine, yes, we would have been looking at a situation similar to that in the late 1930s, but that invasion has not succeeded. The reason for that is the involvement of this Government, who took extraordinary steps to train Ukrainians; provided vital munitions, such as next-generation light anti-tank weapons, before the war started; ensured that we were the first country to provide tanks; and encouraged other nations to provide enormous amounts of arms. Without that, the world would be an even less safe place, but I accept that it is becoming more dangerous, which is why we are supporting our armed forces, and why we are playing such a massive role in NATO’s Steadfast Defender exercise.
The hon. Member for Huddersfield (Mr Sheerman) referred to Members on both sides of the House. Is there not a clear distinction between Members on either side of the House, namely that from the Prime Minister and the Chancellor downwards there is a commitment and an agreement to defence spending amounting to 2.5% of GDP, while in stark contrast Labour Members, while suggesting that they are a Government in waiting, are not prepared to commit themselves to 2.5%, or even to our current spending commitments? There is unity on the Conservative side, and complete disunity on the other.
In my hon. Friend’s constituency, which I had the pleasure of visiting recently, there are many defence interests, and he has hit the nail on the head. We have heard all the theatrics, but the fact is that we have not a clue what the Opposition will spend on defence. Labour Members have not even confirmed that they will spend the existing 2.3%, let alone 2.5%.
The conflict in Ukraine is a stark reminder of why we must take our defence incredibly seriously. The Minister has just said that the world is becoming a more dangerous place. Does he therefore agree that his Government’s decision to cut our UK troops to 10,000 was irresponsible, and will he commit himself to reversing those cuts and ensuring that the British Army is the requisite size to defend the United Kingdom and its allies?
As I have said, we have just committed 40% of the land force personnel to the Steadfast Defender exercise. NATO is the key to the defence of this nation, and indeed the whole continent, in conventional terms. We should recognise the enormous contribution of our armed forces, and the fact that we have increased spending significantly. However, I hear what colleagues are saying, as does the Secretary of State. We have set out the case for 2.5%, but we want that 2.5% to be sustainable, so that the economy can afford it over the long term, and that will be possible through growth and sensible measures on fiscal policy.
The Minister conceded earlier that funding for Ukraine and the escalating nuclear cost were at the expense of restoring the viability of our frontline readiness, but deterrence is a lot cheaper than war. Surely our support for Ukraine and the deterrent should be a charge on the general fund, rather than further hollowing out our conventional armed forces.
I do not believe I made that point about nuclear. The right hon. Gentleman has said that these factors are at the expense of the frontline, but nuclear is the frontline. We have had the continuous at-sea deterrent patrolling in defence of this country every year since 1969, as I recall. We have had it for a long time, and it is fundamental to our defence. The idea that that is not frontline spending is extraordinary.
Looking at the figures for resource and capital departmental expenditure limits, it looks like there is a 7%—£2.5 billion —cut for this coming year. The Office for Budget Responsibility says that defence spending will be flat as a share of GDP. With Russia’s expenditure on its military at 40% of its total economy, why did the Secretary of State accept the reduction from the Chancellor and the Prime Minister?
I have explained why we do not believe that there has been a reduction; we believe that there will be a 1.8% increase in real terms. The hon. Gentleman says that spending as a percentage of GDP is flat. I point out that in 2019, it was 2.08%—just under 2.1%. We believe that if we spend everything we expect to in the next financial year, that will be 2.3%, which is a significant increase.
I am sure that the Procurement Minister is aware of Survitec in my constituency, which has provided equipment to the armed forces for decades. He will acknowledge that the last few years have taught us the importance of having secure UK supply chains, and of getting good jobs to the whole country through the power of procurement. I invite him to come and speak to Survitec, so that he can hear directly from the company about its frustrations with the procurement process.
Before I was injured playing football for Parliament versus the Army, I always used to enjoy playing five-a-side with the hon. Gentleman. I would be delighted to accept his invitation to visit, because small and medium-sized enterprises and businesses are absolutely critical. As the Minister for Defence Procurement, and having run an SME, I believe that we have to have an environment that encourages investment in defence and supports our domestic supply chain. A key part of that is exportability. I look forward to discussing these matters with the company that he mentions.
The shocking state of Army accommodation is a big driver of the recruitment and retention challenges that we face, so it will not come as a surprise to hear that I am yet again raising the issue of the shocking standard of accommodation at the Chicksands base. When I catch up with serving personnel over a pint or two at our local pub in Shefford, there is a growing sense of resignation about the future of the base, but there is real concern that its planned closure will mean that the situation goes unadjusted, and that really poor accommodation units are not improved. To do right by those personnel, will the Minister commit to revisiting the Government’s decision not to upgrade either of the two service bases in my constituency, where hundreds of beds fall into grades 3 or 4?
We engaged with this issue in the hon. Gentleman’s Westminster Hall debate on accommodation, in which I announced our plans for Chicksands. I entirely accept that this is a matter on which there should be engagement with the local community, and that there will be a range of views. I emphasise that we have put an extra £400 million into accommodation, which has allowed us to deliver our winter plan highly effectively. There has been a massive increase in the number of properties in the defence estate benefiting from damp and mould packages, but also from new doors and so on, to deal with long-standing issues in the estate, and I am keen to do more.
I thank the Minister for his answers to the questions posed to him. There can be no doubt that the Government must do more to increase defence spending, given that a large portion of our defence budget has rightly been spent on assisting Ukraine. However, we must ensure that other issues are not left behind. Unfortunately, there was no mention in last week’s Budget of an additional funding increase for our armed forces. Will the Minister increase our defence budget, so that we can ensure that our actions speak louder than words, and so that promises are kept, and our armed forces can keep us safe?
As ever, we have saved the best till last. I think the hon. Gentleman has attended every urgent question or statement I have ever been involved in, and I pay tribute to him for that, and for the way that he represents his constituents in Northern Ireland, particularly those who serve in the armed forces. They have always been a huge part of our British military story. I have always paid tribute to them and the industry—for example, Thales—for their contribution. Last week, I had the pleasure of meeting representatives of a brilliant SME from Northern Ireland that is supporting the Royal Air Force. I have been clear that we had the largest increase in defence spending since the cold war at the last spending review, further funding in the Budget thereafter, and a commitment to spending 2.5% of GDP when the economy can support that.