Defence Spending

Jamie Stone Excerpts

Tuesday 16th July 2019 Westminster Hall

[Anne-Marie Trevelyan]

I thank the hon. Lady for that point. It is important to look at how we spend that investment for UK prosperity. The hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) is nodding—he is thrilled that the south-west is doing particularly well out of the regional disparities. I agree that we need to think about how the funding is allocated.

In the busy life of a constituency MP, it is often too easy to assume that all must be well in our defence investment. Surely no Government would fail to meet their first duty of governing—to protect their people. When budgetary constraints are imposed, our military leaders cannot talk directly to MPs to tell them whether funding is getting to the frontline or into the investment paths that they need to deliver what we ask of them.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

I congratulate the hon. Lady on securing the debate. I want to make a technical point about defence spend. We can spend now to save later, but I draw a distinction between capital spend and revenue spend. Everything I have looked at on defence spending in my short two years here suggests that the Ministry of Defence is not being very clever. Going down the capital route, rather than the revenue route, would be much more efficient in the longer term.

[Anne-Marie Trevelyan]

The hon. Gentleman pre-empts some of what I am going to talk about. He is absolutely right.

Our doctors and nurses tell us directly and bluntly if the funding systems for the NHS are not working properly so we can do something about it and advocate for them. However, that is not an option for our defence chiefs, so it is hard for us to know whether their resources would be sustainable and resilient if there were a major crisis. The question is not only whether enough funding is going into our defences but whether we are spending it correctly—a narrative that ran successfully after the strategic defence and security review in 2010, when the country was in dire financial straits and the former Member for Whitney had the unenviable challenge of trying to put it back on to a stable financial footing. SDSR ’10 declared—conveniently, perhaps, to match the financial crisis—that the Ministry of Defence, like other Departments, had to find efficiencies. There is no question but that that was the right thing to do.

--- Later in debate ---

[Anne-Marie Trevelyan]

I absolutely agree. In my role as chairman of the all-party parliamentary group on the armed forces covenant, I have spent some time in Northern Ireland, where we have some real challenges at the grassroots level—not the political level—to try to help those who need day-to-day support to look after themselves. I have met some extraordinary women and extraordinary wives—I take the opportunity to say they are extraordinary—who are looking after very damaged former soldiers, some of whom are the hon. Gentleman’s constituents. They deserve all credit.

The world is not a safer place, and while the nature of warfare may be changing, at the end of the day we need to be able to reach wherever the threat is, bearing in mind that, as my son always reminds me, five sevenths of the globe are covered in water. Ships are therefore a critical tool, and our shipbuilding strategy must reflect the importance we play as a United Kingdom, and a critical part of NATO.

The key point is that presence is influence, and with influence come positive outcomes. We cannot do deterrence if we are not there. We saw that demonstrated in stark images on our TV screens last week when HMS Montrose in the strait of Hormuz assured the safe passage of a BP tanker, protecting it from the insurgent threat of Iranian military attack. If Montrose had not been there, I dread to think what might have happened. Freedom of navigation around the world’s seas and oceans is critical to our economy: 95% of all our imports come by sea, and it is NATO’s navies that keep the sea lanes open for commercial traffic. We would all be very cross indeed and notice quickly if Felixstowe or Dover were shut down by enemy attack. In the same way, just because we cannot see the huge areas of oceans from which our goods and energy are being brought to us, that does not mean we should forget that we need to police those waters, too.

[Jamie Stone]

What the hon. Lady is saying about the Royal Navy is music to my ears. I look forward to participating in the armed forces scheme next year.

The F-35 is a splendid aircraft that I fully support us buying from the Americans, but the bitter fact is that, as we all know, we will never own all the intellectual property of that aircraft. We will never know exactly how it works because of security aspects. Why should the Americans tell us? That is one reason why keeping manufacture here in the British Isles as much as we can is crucial. Only if we make it, or do so in partnership with others, will we know everything there is to know, with that information being secure.

[Anne-Marie Trevelyan]

The hon. Gentleman’s point is well made.

The question today is defence spending. Let me therefore share with the House the assessment the Public Accounts Committee made of the latest equipment plan:

“In May 2018 we reported that the Ministry of Defence…did not have enough money to buy and support the equipment it needs.”

Bear in mind that buying is 50% and supporting is 50%. Our report continued:

“the Department has made little progress, continuing to delay the difficult decisions needed to make the Equipment Plan…affordable, particularly around which programmes to stop, delay or scale back. It now estimates a most likely affordability gap…of £7 billion across its Plan… It also estimates that the gap could widen to £14.8 billion, but even this looks to be unlikely and overly optimistic. The escalating and continuing affordability issues have led to short-term decision making which has only worsened the longer-term affordability risks.”

We continue to watch that on the Public Accounts Committee, but the sense of anxiety just builds as we keep seeing a lack of change in policy frameworks. Instability across the globe is increasing, so if we do not build the equipment we need to achieve our SDSR ’15 goals, let alone what those in SDSR ’20 might look like, we will simply not be able to meet politicians’ requirements.

Politics is about making choices and we need to think carefully about this one. Our military will always offer their political masters choices and solutions as required, but they may have to bend themselves out of shape with collateral damage, gaps and risks elsewhere in order to do so. I do not believe that we can expect them to do so if we, the politicians, do not give them the funds they need to meet at least the SDSR ’15 asks. If we do not show confidence in our military personnel with, in the scheme of things, a very small amount of cash investment in human capital, which is utterly vital to success in warfare, we will continue to lose too many people who have been willing to commit their lives to defending us and our families.

We must not leave our armed forces with the impossible decision of robbing Peter to pay Paul. Short-term decisions on finances can have long-term implications on recruitment, retention and equipment capability and availability. Defence is an insurance policy, so if we get our deterrence right, it stops wars and attacks on us or our allies. That is success, but it costs to achieve that, and it is invisible. No soldiers on our TV screens battling in the desert does not mean that we are not maintaining a global presence to deter those who would wish us and our allies harm. Military personnel are defending us and our way of life invisibly 24 hours a day.

We all have house insurance not because we expect our homes to burn down, but because a roof over our family’s head is so important that we plan to protect ourselves just in case. Our armed forces are our nation’s “just in case.” I worry about how our political leaders sleep soundly at night thinking that we have only a budget insurance policy and hoping that we will never have to claim on it. The budget is large at £40 billion a year, but, without the right decisions and an acceptance that that is not quite enough for what is needed to keep us all safe, the shortfall in funding and financial frameworks leaves us horribly exposed to unknown threats.

We must bring the defence budget up at least to the point where the political ambitions set out in our own SDSRs are matched by the funding for our military experts to deliver those for us. To do that, I estimate we need an increase of some £4 billion a year to the budget and, equally importantly, flexibility to fund long-term projects intelligently for best value and speediest output. It cannot be right that we allow our military personnel to be put at greater risk than they need to be by failing to invest properly in our Army, Navy and Air Force.

I do not mind if the Treasury wants to invest more because it is morally the right thing to do to ensure we can protect our people, our trade and our allies, or simply because it is the right financial method to make better use of taxpayers’ money over the long term to get real value for money. If the financial models set out in the Green Book do not deliver that, we should change them so that they do.

We are in charge of our country’s destiny and we can set the framework to maximise the positive outcomes for this great nation of ours, which is respected around the world for its military prowess and its people. I thank the Minister for his loyal support of our armed forces, and I hope that the Treasury is listening.