Armed Forces Bill

Debate between James Cartlidge and James MacCleary

2nd reading
Monday 26th January 2026 Commons Chamber

[James MacCleary]

It is understandable that the Opposition are embarrassed about that. We need to get our troop numbers back up to a critical mass that will allow us to carry out our duties overseas.

The Government’s decision to increase the upper age limit for reserves and cadets to 65 warrants serious scrutiny. Ministers must explain whether the change will genuinely enhance operational effectiveness, skills and readiness, or whether it is simply a mechanism to inflate headline recruitment numbers without addressing the underlying retention and capability challenges facing our reserve forces.

That brings me to the important issue of defence spending, which, of course, underlies all of this. The Liberal Democrats support increasing defence spending in every year of this Parliament, and we will explain how to do it. We are calling for a clear, credible pathway to reaching 3% of GDP on defence by 2030 at the latest, backed by cross-party talks to secure long-term consensus. As part of that plan, we have proposed the introduction of time-limited defence bonds—capped, fixed-term, and legally tied to capital investment—to raise up to £20 billion over the next two years. That would allow the Government to accelerate investment in the capabilities set out in the strategic defence review, strengthen deterrence now rather than later, and send a clear signal to our allies and adversaries alike that Britain is serious about its security.

[James Cartlidge]

I heard the announcement made by the leader of the hon. Gentleman’s party about the bonds. Of course, that would still be borrowing the money. It would be added to the national debt, and it would have to be repaid. The question is, where exactly would the money come from? Would it mean cutting spending or putting up taxes?

[James MacCleary]

These are bonds issued to the public and to funds in the normal way, as all these vehicles are. They would be for people to invest in, so this would not involve cutting anything. It would be short-term borrowing that would fall within the Government’s existing fiscal rules, as we explained at the weekend. This is a serious proposal to increase defence spending in the short term, unlike the proposals from the Opposition, which, I understand, are for welfare cuts—a long-term measure that would fall on the most vulnerable in society.

[James Cartlidge]

I am grateful to the hon. Gentleman for giving way again. It is very generous of him. Is he saying that those bonds would not have to be repaid?

[James MacCleary]

Of course they would have to be repaid, and we have laid out this policy very clearly.

[James Cartlidge]

Where would the money come from?

[James MacCleary]

I am happy to send the hon. Member a briefing if that would be helpful to his deliberations, but of course the money would have to be repaid. These are two-to-three-year bonds that would generate an immediate injection of cash to buy the kit that our armed forces need.

In an increasingly dangerous world, standing still is not a neutral act, and warm words without funding will not keep our country safe. That is why I was relieved to see reports over the weekend that the Government are seeking to restart negotiations over UK access to the EU’s Security Action for Europe fund, which I hope speaks to a belated and dawning realisation that President Trump is increasingly posing a threat to Britain’s security and values. At the same time, I urge the European Union to approach these discussions with pragmatism, to come to the negotiating table in good faith, and to recognise that the UK is an essential security partner. This is not the moment for political point scoring, for putting domestic protectionism ahead of continental safety, or for setting the bar so high that shared European security is the casualty.

A fair deal for our armed forces community means more than just equipment and strategy; it means treating service personnel and their families with the dignity and respect that they deserve in every aspect of their lives. The Liberal Democrats are calling for a fair deal commission for service personnel, veterans and families to review conditions comprehensively and recommend improvements in pay, housing, diversity and transition services. We would allow families of armed forces personnel access to military medical and dental facilities, and improve mental health support for the whole armed forces community. We would waive visa application fees for indefinite leave for members of the armed forces on discharge and their families, and we would ensure that military compensation for illness or injury did not count towards means-testing for benefits.

These are not fringe issues; they go to the heart of the covenant between the nation and those who serve. If we ask people to be ready to give their lives for this country, we owe them more than warm words. We owe them action. In respect of housing specifically, while we welcome the Defence Housing Service, we need to go further. We would require the Ministry of Defence to provide housing above minimum standards, and to give service personnel stronger legal rights to repair and maintenance. Our recent campaigning secured a Government commitment to assess family military homes according to the decent homes standard. That is progress, but it must be implemented properly and swiftly.

We also support the recommendations of the Atherton report on women in the armed forces, and will work to establish better structures to guard against discrimination and harassment. The armed forces must be places where talent thrives, regardless of gender, and where everyone can serve with dignity.

We owe it to our armed forces to provide certainty, which makes the continued delay of the long-promised defence investment plan all the more concerning. That plan must be brought forward without further delay. We cannot continue a boom-and-bust cycle of defence reviews that leaves industry in limbo, undermines long-term investment, and allows vital skills and supply chains to wither away through uncertainty.

The Liberal Democrats look forward to engaging constructively with this Bill, and to scrutinising its provisions carefully as it proceeds through its remaining stages. We will not stand in the way of improvements that matter to service personnel and their families, but we will continue to press for more, because our armed forces deserve more and Britain’s security demands more. We will continue to call for reversing troop cuts, increasing defence spending to at least 3% of GDP, tackling the recruitment crisis and ensuring a comprehensive, fair deal for the armed forces community.

Britain’s armed forces are the finest in the world. They represent our values, defend our interests, and stand ready to protect us and our allies. They deserve a Government who back them with resources, strategy and unwavering support. The Liberal Democrats will always champion that cause, and we will always stand shoulder to shoulder with those who serve.