Defence Budget and Transformation

Jessica Lee Excerpts

Monday 14th May 2012 Commons Chamber

[Mr Hammond]

My hon. Friend is absolutely right about that and I have acknowledged it many times: uncertainties about redundancy, about basing and about unit structures are all debilitating. We will close down those uncertainties as soon as we possibly can but, as I said, it will be towards the end of the year before we can make an announcement about basing.

[Jessica Lee (Erewash) (Con)]

Does my right hon. Friend agree that the £4 billion contingency budget for the equipment programme is particularly welcome for companies such as Chemring, in my constituency, which provides hundreds of jobs and builds fantastic, quality equipment for our armed forces? I say that because businesses require clarity in order to plan for the future, and today’s statement provides that.

[Mr Hammond]

I am grateful to my hon. Friend for that. The knowledge that there is a £4 billion contingency budget will be hugely reassuring for the defence industry when it looks at the overall programme and decides how to invest its own money in the technologies and skills needed to deliver it. However, I urge the company in her constituency not to think that the £4 billion is there to accommodate its cost overrun.