Reserve Forces

John Baron Excerpts

Tuesday 17th November 2015 Westminster Hall

[Mr Hollobone]

I am grateful to the hon. Gentleman, who has identified a real issue, and hope that the Minister will respond to those figures. We want to ensure that ex-regulars join the reserves. We also need to retain the reservists who are recruited. Retention is a key issue. All too often we focus on how well recruitment is going, and do not spend enough time on retaining reservists.

I am pleased that the Government have an employer recognition scheme. It was launched by the Prime Minister in July 2014 and is intended to recognise employers through a scheme with bronze, silver and gold tiers. I understand that 10 employers received gold awards last year.

[Mr John Baron (Basildon and Billericay) (Con)]

Does my hon. Friend agree that part of the problem is that the original plan was to hold the regular forces and not let sizeable numbers go until there was clear evidence that the plans for the reserves were working? That original plan changed because of financial considerations, which is the reason for the present large capability gaps. Perhaps it is also the reason for the problem with recruitment.

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[Mr John Baron (Basildon and Billericay) (Con)]

I thank my hon. Friend the Member for Kettering (Mr Hollobone) for securing the debate. When he was serving in his trench in Germany in the 1980s, I was even further east during the cold war, in Berlin, surrounded by the enemy. We were always told that quality would see us through, but some of us also knew that quantity has a quality all of its own, and that we stood very little chance. Our job was just to slow the progress of the advancing forces in time for when they met my hon. Friend, who would obviously put a stop to them.

I start by making the obvious point: the plan to replace 20,000 regulars with 30,000 reservists was born out of financial pressures, not strategic logic—let us be absolutely clear about that. As was described to me and others by the then Secretary of State for Defence, the financial logic was very simple. In peacetime, reservists cost a fraction of regular forces; they are easier to maintain on the Ministry of Defence budget, but when the balloon goes up and they need to be deployed, the cost of deployment, which is far higher for reservists than it is for regulars, gets transferred to the Treasury. It was an accounting exercise designed to save money. There were no strategic grand designs with this plan. That is not to say that there are not advantages from having a more flexible reservist force available to hand, or that one does not have a deep regard for the Territorial, now reservist, forces—I served with them myself in Berlin, Germany, Cyprus and Northern Ireland back in the 1980s—but the bottom line is that the plan was born out of financial pressure, not strategic design.

The plan was criticised by some of us at the time. The criticism manifested itself most starkly when we tabled amendments to the Defence Reform Bill, later the 2014 Act, in the last Parliament. I managed to secure the support of the official Opposition and the Scottish National party for an amendment, but unfortunately I could not carry quite enough Members from my side, although I am very thankful to those who did support me in that amendment, including my hon. Friend the Member for Kettering.

For us, the problem was that replacing 20,000 regulars with 30,000 reservists would create capability gaps and false economies in the longer term. The original plan was to hold those 20,000 regulars in situ until we had clear evidence that the reservist plan would work—in other words, until we had geared up on the reservists’ recruitment. There were clear indications that we could plug that gap—that, by the way, was confirmed by the previous Defence Secretary, who stood up during the debate on the amendment to the Defence Reform Bill and said that that was the case and that was the original plan. However, in addition to the cack-handed plan of replacing 20,000 regulars with 30,000 reserves, simply on the grounds of financial pressure, we then compounded the problem by saying, “We’ll let the regulars walk out the door, and no doubt we won’t have any problem with reserve recruitment.” What madness that turned out to be. We let the regulars out the door and the Army is now, I think—no doubt the Minister will correct me if I am wrong—below 82,000 on our regular strength, and meanwhile we are struggling to recruit the reservists, as my hon. Friend has clearly outlined.

The problem is not just numbers. My hon. Friend rightly pointed out that we are perhaps 9,000 or 10,000 reservists short, but, as has been alluded to in this debate, it is not just the numbers that are the problem; it is the age profile of the existing reservists. Answers to written questions more than a year ago highlighted that the average age of an infantryman in the reserve forces was in the mid-30s, and that going up the ranks, whether senior NCOs or officers, it was heading into the 40s.

We all loved “Dad’s Army”—great series—and there is a place for a home reserve, but Dad’s Army was not on the Normandy beaches. In addition to the numbers being recruited into the reserve, we need to look at the age profile of the existing reservists. The figures I quoted are for infantrymen, not the other arms of the reserve. Infantrymen have to be of a certain age to be at their peak capability on deployment.

[Mr Brazier]

My hon. and gallant Friend is generous in giving way. Dad’s Army was not on the Normandy beaches as it was a home defence force, but the Territorial Army most certainly was there. A division helped to hold the line at Dunkirk and, indeed, a national guard division on its own took Omaha beach.

[Mr Baron]

I do not deny all that, and the Minister will not be able to deny that the Government have made it clear that they intend to deploy reservists much more frequently in overseas operations. He gives us only half the truth. If the plan is to deploy reservists much more regularly, not only will that be more costly than deploying regular forces, but we will have to address the demographic issue within existing reservists and the TA.

In the time remaining, let me return to false economies. No one can deny that capability gaps have occurred as a result of the change in plan, but the Minister must address the false economies resulting from that. Letting regulars go prematurely and the problems with reservist recruitment highlighted by my hon. Friend the Member for Kettering have resulted in extra spending. It is not just the IT fiasco, which cost £10 million, but the extra spending on incentives for both employers and employees —£500—pension equalisation and advertising.

I have asked parliamentary questions about whether the Government can quantify those extra expenses, which were not foreseen when the original plans were put in place. We have not had answers. We keep being told that there is £1.8 billion, which should cover those expenses, but that £1.8 billion is over 10 years. We need detailed answers from the Government on what those unforeseen extra costs have been. When will we have those answers? Either the Government do not know the answers, which would be worrying, or they do know and will not disclose them. That would be equally worrying and may suggest to some that they are trying to hide something.

I look forward to answers from the Minister, and if he does not have time to provide them today, perhaps he will write to me and others who have raised the issue and say what the extra costs are. Our two central concerns are capability gaps in the short term and false economies in the longer term. At the moment, the reservist plans seem to have both problems.

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[The Parliamentary Under-Secretary of State for Defence (Mr Julian Brazier)]

What a pleasure it is to respond to the debate under your chairmanship, Sir Roger. I congratulate my hon. Friend the Member for Kettering (Mr Hollobone) on securing the debate and on his remarkable, predictably thoroughly researched and self-effacing speech. The debate takes place as we remember the first world war, in which the then Territorial Force won 71 Victoria Crosses, and the Battle of Britain, in which two of the three highest-scoring squadrons were from the Royal Auxiliary Air Force.

I will try to pick up as many points as I can in the short time available. My hon. Friend and the hon. Member for Bridgend (Mrs Moon), who had to leave to attend the Defence Committee, know that I am not allowed to respond to the points they made about special forces, beyond saying that my heart goes out, as I know theirs do, to the families of the three young men. I share my hon. Friend’s pride in the Conspicuous Gallantry Cross he referred to, which is the latest in a series of decorations won by the unit we both served in.

The expansion of the reserve forces is critical to our ability to deliver defence on a sustainable financial basis and to maintain the Clausewitzian trinity of the armed forces, the Government and the people. It will enable us to ensure that the armed forces are structured and resourced to meet the challenges of the 21st century. After many years of neglect, the Government are restructuring and revitalising our reserve forces and investing in new equipment and support.

The programme is not—my hon. Friend the Member for Basildon and Billericay (Mr Baron) and I have debated this many times—about swapping regular personnel for reserves. In 2010 we did, indeed, make some very painful decisions right across Government. After that, the commission on which I served looked at the issue of the balance and recommended changing the way that we delivered defence to make the best use of our resources, better to harness the talents of the wider UK society and, above all, to help to restore links and understanding between the armed forces and the communities that they serve. The sombre events in Paris remind us of the importance of those close links. We should be in no doubt at all that, whatever the size of our armed forces, we must always have reserves.

Now, the hon. Member for North Durham (Mr Jones) knows that he is not going to tempt me into anticipating the strategic defence and security review, but I can say that I am pleased to be part of a Government who are genuinely committed to 2% for defence spending, although I know I will not satisfy my hon. Friend the Member for Kettering on the legal point. Nevertheless, we are committed to it.

Our programme to grow the reserves is making good progress but, as my hon. Friend said, there is no room for complacency. In the year to 1 October, more than 8,500 people joined the volunteer reserves, an increase of more than 65% on the previous 12 months, taking their strength to more than 33,000. Most notably, 6,500 people joined the Army Reserve, an increase of 73% on the previous period. All three services are ahead of their trained strength targets, but that certainly does not mean that we can relax. We must continue to make further progress to meet our commitment of creating a force of around 35,000 trained volunteer reserves by April 2019, and to deliver the usable, motivated and capable reserve forces that the country needs. My hon. Friend is right that that means another 9,000 trained personnel in three and a half years’ time. Given that we have grown by 1,300 trained personnel in just the past six months, that seems challenging but not unattainable.

My hon. Friend is absolutely right—a number of other Members referred to this—that the biggest challenge is building the officer base. The internal study set up by the Chief of the General Staff and headed by a reserve brigadier has recommended considerable restructuring, including a marketing post manned by a volunteer reserve officer with huge marketing experience, who is now installed in Sandhurst. The numbers are going up. For example, just outside the constituency of the hon. Member for Stirling (Steven Paterson) is 71 Engineer Regiment, which I visited recently. It now has six young officers under 30—a transformation from even a couple of years ago. The same thing has happened with my local reserve unit.

A number of Members made a point about the need to get the age structure down. In fact, the largest concentration in the age structure of the Army Reserve is in the 25 to 29 category. We are working hard on it, but the averages are pulled up by the fact that we want older people—those in their 40s and even 50s—in areas such as intelligence and for some of the medical skills. A number of Members, including my hon. Friend the Member for Kettering, mentioned transfers from the regulars. Those are running above our target. In fact, that is the one part of reserve recruiting that has been consistently above target, and we are offering substantial financial incentives to those who transfer.

We are offering reservists today more challenging opportunities than before. New call-out powers enshrined in the Defence Reform Act 2014 have allowed us to use reservists in the same way as regulars, and reservists have taken up the challenge. We would only have compulsory call-out only in an emergency, but people join the reserves because they want to be used. In the past 12 months, they have been deployed, as my hon. Friend the Member for Kettering said, in formed groups to Afghanistan and Cyprus. They have provided specialist help to deal with the Ebola crisis in west Africa, and maritime reserves have taken part in counter-terrorist and counter-piracy operations alongside their regular counterparts. As my hon. Friend said, next summer a company from 4 Para will provide the framework company for the Falkland Islands.

We are offering reserves more and better training opportunities. In the current training year, the services have planned more than 50 overseas exercises involving reserves, including a series of Army exercises in Kenya with integrated companies of regulars and reserves. A number of Members referred to the crucial importance of the specialist courses in what we call phase 2 and 3 training and to the difficulties of tailoring those to reservists in civilian employment. The fact that Chatham has managed that for an area such as bomb disposal shows that this is possible more widely across the Army.

Several people, including the hon. Member for Bridgend and my hon. Friend the Member for Kettering, referred to the importance of cyber. For quite a long time, the only cyber-unit in the armed forces was a reservist one in the then Territorial Army. Today, reserves play an important role in cyber in all three services.

We have invested in new equipment. We have given reservists access to the regular pension scheme and a paid annual leave entitlement. We are giving them full access to Defence-provided medical care and physiotherapy, which, as my hon. Friend the Member for Kettering will remember, was an issue when he and I served. We have improved civilian accreditation for training. Employers are vital and we are immensely grateful for the commitment some of them make.

[Mr Baron]

No one in this Chamber doubts the dedication, hard work and enthusiasm that the Minister is putting into the task of increasing the reserve forces, but he must also accept that key questions remain unresolved, including the age profile of the infantry. We all accept the age profile when it comes to reservists and specialisms such as cyber, but the age profile of the infantry is still far too high—mid-30s and early 40s. May I return the Minister to the central issue of extra costs? There have been extra unforeseen costs with these plans, which, despite frequent requests to the Government, he and the Government are unable or unwilling to disclose. Does he intend—if not here today, then perhaps in the immediate future—to put that right?

[Mr Brazier]

I have written to my hon. Friend and I will write to him again. The ongoing costs of the recruiting process have shown some significant savings, but it is difficult to separate regulars and reserves because they are in the same contract. If he is referring to the contingency costs of deploying reserves on operations, there is a cost associated, but it is a cost that is paid for only when there are large-scale operations. The point about reservists—as the hon. Member for East Renfrewshire (Kirsten Oswald) said, if I heard her correctly—is that it is very much cheaper most of the time to have part of the forces in reserves.

We have established the defence relationship management service, to which 42 of the 100 FTSE companies are now signed up. I have already mentioned the extra benefits for small and medium-sized enterprises. Crucially, we have set up an annual employer notification process, so that employers know a long way in advance when reservists are being called. That is crucial for retention, which so many Members referred to.

My hon. Friend the Member for Kettering set out the progress we have already made on the employer recognition scheme, which includes many NHS trusts. We are not in a position to dictate this, although I pay tribute to the Scottish Government, who run a more unified system and are able to dictate. Many hospital trusts have won employer awards. The Cabinet Secretary has the 1% challenge; we now have 1,250 civil servants serving in the reserves. These are at the heart of the retention issues. I cannot give the exact figures for medical reserve recruiting at the moment, but I can say that over the past 12 months the Army medical services, which are the bulk, have seen a considerable surge in numbers. I will write to my hon. Friend and to the other Members who raised that issue with some more detailed figures.

We have overcome a number of challenges that were affecting Army Reserve recruitment. We are making more imaginative use of advertising media, and we have hugely reduced the delays in the pipeline under the new system and provided better mentoring and support in units for those enlisting.

I thank all Members who took part in the debate and the many other Members who support their local units. Our reserves are stronger and better equipped than they have been for years. Despite the neglect, over the past 10 years, 70 reservists won decorations for gallantry in Afghanistan and Iraq, and 31 gave their lives. There is a great deal that we can be proud of in our reserve forces. We are making the reserves proposition that we set out in the 2013 White Paper a reality.