Ministry of Defence

Debate between James MacCleary and James Cartlidge

Wednesday 4th March 2026 Commons Chamber

[James MacCleary]

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

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

[James Cartlidge]

The hon. Gentleman is always generous in giving way on this point. I hope he has done his homework because I pointed out the last time I asked him that he would have to repay those bonds to the bondholders two years later. Where would that £20 billion come from?

[James MacCleary]

As the hon. Member says, he has asked me that question before. I have done my homework, and we have published the full background. This sits within the Government’s fiscal rules, and is actually a relatively small cost to the Government. Let me now ask the hon. Member—he may wish to answer during his own speech—how his party would invest quickly in defence spending. This is a credible proposal, and I should like to hear credible proposals from others too. We should like the Minister to announce defence bonds, with no further delay.

With conflict in the middle east, it is easy to lose focus on the war much closer to home, in Ukraine. The United Kingdom has so far committed £10.8 billion in military support between February 2022 and March 2026, drawn from the Treasury reserve. The £3 billion annual pledge and the G7 loan facility are welcome commitments, but we can and should go further. The UK holds an estimated £25 billion in frozen Russian assets. My party has tabled the Russian Frozen Assets (Seizure and Aid to Ukraine) Bill to direct those funds to Ukraine’s military, reconstruction, and humanitarian defence, and we are calling for that today.

National security is the first duty of any Government. The spring statement contains real increases in defence spending, and I do not dismiss that, but it also contains a £9 billion accounting adjustment with no explanation, a defence investment plan that remains unpublished, and a 3% target that is still under vague consideration.

British forces are currently engaged in defensive combat operations to protect our bases and citizens in the middle east and eastern Mediterranean. We must focus on not just new kit but existing kit, and it is conspicuous that so many of our vessels are not currently available to the Navy.

The Liberal Democrats have been clear about what is needed. We have proposed pragmatic, realistic steps to make our nation safer now and in the future.

Armed Forces Bill

Debate between James MacCleary and James Cartlidge

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.