Budget Resolutions and Economic Situation

John Glen Excerpts

Wednesday 28th October 2026 Commons Chamber

[John Glen (Salisbury) (Con)]

It is a pleasure to be able to contribute so early in this debate. I speak as a former Treasury Minister in the previous Government who sat behind four Chancellors in different scenarios. I acknowledge the enormous challenge that every Chancellor faces in trying to reconcile so many competing pressures, but when I reflect on my experience of listening to this Budget, I am left with a great sense that it has been a Budget of missed opportunities. It has 98 measures where the value of each individual measure is at a record low. It is a Budget that has not taken the opportunity that is necessary for our economy.

All Governments face different circumstances. I was in the Treasury when covid occurred, and we had to make interventions on a scale that had never been seen before, and that obviously resulted in significant scarring to the economy. This Government face different challenges in terms of energy security as well as a fundamentally transformed context when it comes to national security risks. I was left feeling that, as Helen Miller of the IFS says, there has been a lack of a “coherent vision”. It is as if everything has been kicked further down the road. That leads me to conclude that we are warming up for a general election, which will be framed around the need for more taxes to reset the economy.

For a Chancellor to come in with a new Prime Minister and make 98 measures, all of which have a record low level of impact, speaks to a lack of ambition, while a position is held—on the back of £66 billion of tax rises—so that more can be done on the basis of whatever comes out of the summit with the EU next week. That is what I am anticipating. Of course, some of these small measures will be welcome, but when the effects of the tariff changes amount to 40p a week, for most people they will not be significant.

I want to look at some of the tax measures. The increase in tax on savings is not a good thing. That higher level of tax take will risk incentives within the system, constraining economic activity by more than expected. That is what people are saying about this Budget. There is the renter tax—it has been determined that measures in the Budget collectively risk leading to a steady rise in rents, building on the additional taxes of last year.

I take a close interest in financial services, having had some experience in that sector as the Minister. I note what the Chair of the Treasury Committee, the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), said about the rise in some share prices this morning. I think those services probably anticipated a larger increase in the surcharge, back up to 8%; the increase to 6%, therefore, and its time-limited nature, were reflected in a bump, as it was felt that that was not as bad as it could have been. However, looking at what UK Finance says about the implications of this change, I note that we need only a modest change—that is, if 7.4% of internationally mobile banking were to leave the UK—for the tax increase to generate zero net revenue. This is not some insignificant industry that is wholly located in London; it is an industry that provides the infrastructure for the wider economy. We will see the impact of that decision on interest and saving rates.

When I was the Minister in this area, I used to have conversations with the CEOs of global banks, and they pointed out the aggregate tax rate—looking at corporation tax, the surcharge, the levy and the national insurance rate—and then compared our situation with others internationally. Our aggregate rate is now going to look really bad, after what has already happened with the national insurance increases.

I want to reflect on what the Budget has not done for small businesses in my Salisbury constituency. I have been particularly impressed by one small businessman who I have got to know over the last few years, Ethan Davids. He is very young—in his early 30s—and has 15 hospitality venues, which are growing rapidly. He says to me that the combined effect of the increase on employer national insurance, the Employment Rights Act 2025 and the previously above-inflation increases in the national living wage, alongside the challenges of a reliable outcome from the planning process, actively discourages him from making investments. I fail to see anything in this Budget that has made a significant impact on the context in which his business operates and on the decisions he will make.

[Noah Law]

Would the right hon. Member care to ask that business owner about the potential impact of the reduction in business rates for nearly 70,000 small businesses?

[John Glen]

Yes, a small measure like that will make some impact, but we need to look at the context—at what we have seen previously. As the hon. Gentleman will know, the manifesto he stood on two years ago implied a modest increase in taxes of about £7 billion, and we actually had increases of £66 billion. The scale of the burden placed on those businesses means they are disinclined to continue to invest.

I want to say a few words about defence. It is a massive part of the world in Wiltshire, including in south Wiltshire. Again, the context is changing, and it is doing so rapidly. The commitment given so far to raise defence expenditure is, of course, welcome, but in June the departing Defence Secretary was pretty explicit in insisting that a date be given by which 3% of GDP would be secured. A date has not been given today. I accept that there is a pathway to 3.5% and that a taskforce to get to 3% has been announced, but that is very different.

I think that we, in this country, are rather complacent about the nature of the risks we face. Just over two years ago, I visited the Nordics in one of my last months as a Minister. In Sweden and Norway, I was struck by the sense of anxiety and readiness over what Russia was capable of doing and how imminent the threat was. Of course I acknowledge the progress made, but the urgency and reality of the situation in which we now find ourselves necessitates a step change in the urgency of the Government’s response.

[Luke Murphy (Basingstoke) (Lab)]

I respect the right hon. Gentleman’s experience, and the tone in which he is delivering his speech. However, on the point of credibility, I would gently ask him this question. In April 2024, the Conservative Government committed to a target for defence spending in 2030—that target was, of course, 2.5%. A month earlier, they cut national insurance, and they committed to a further cut in national insurance in the manifesto. Will he reflect a little harder on the credibility of the Conservatives on this issue, given their failure to commit to 3% mere months before their party said that defence spending should be 3%, and with no real means to pay for it?

[John Glen]

Of course I recognise the mistakes and choices made in previous Governments, but as I was trying to indicate, the world has materially changed since the general election—I think that is pretty obvious to most people, given what is happening in geopolitics—and that necessitates a suitable response from the Government. Indeed the Chancellor insisted on that when he left his position as Defence Secretary.

In conclusion, if a party comes into government and secures the massive majority that this Government secured, it is pretty painful for the country to see the lack of ambition in the choices made in the three Budgets so far. The downgrade from 1.6% to 1% growth next year is massive, and it still implies a 2.6% per year spending cut in unprotected Departments from 2028-29 to 2031-32. I do not see that as politically realistic for the Labour party, and that is why I anticipate that the next step after the summit next month will be the call for a general election.

Defence Investment Plan

John Glen Excerpts

Tuesday 30th June 2026 Commons Chamber

[Dan Jarvis]

I am grateful to my hon. Friend and to all those who work at Sheffield Forgemasters for the important work that they do; I hope to visit in the very near future. He makes an important point about the need to buy British, and that is what we will seek to do. On the other points that he has made, let me have a look at them for him.

[John Glen (Salisbury) (Con)]

The Secretary of State will be well aware of the central role that Porton Down has played in our nation’s security and history through the UK Health Security Agency and the Defence Science and Technology Laboratory. I welcome the announcement of an additional £580 million to build a new biological lab to protect against biological threats, but will he undertake to examine how that aligns with his Government’s decision to move the UKHSA out of the vicinity of Porton and the announcement last year on biosecurity centres, to ensure that the money that has been invested will be spent wisely and aligned with other commitments?

Oral Answers to Questions

John Glen Excerpts

Monday 1st June 2026 Commons Chamber

[Luke Pollard]

We have set out our intention to increase the amount of sustainable aviation fuel that the RAF uses. Far from being a sign of weakness, that is a sign of increasing security and sovereignty over our fuel supply, recognising the changing world that we live in and ensuring that the RAF will continue to fly, whatever the constraints on fuel in the future.

[John Glen (Salisbury) (Con)]

Having recently visited Wiltshire cadets in Old Sarum, I very much welcome what the Minister said about National Cadet Week. Will she ensure that all schools, particularly those in Pride in Place areas, such as the one in Salisbury, are made aware of the transformational opportunities of attending the cadets? That will be a great way of expanding the uptake, which I am sure she is aiming for.

[Louise Sandher-Jones]

The right hon. Gentleman makes a very good point. I am working with the Department for Education, as it is vital that we communicate the amazing things that cadets can do to complement the education delivered in schools.

Oral Answers to Questions

John Glen Excerpts

Monday 16th March 2026 Commons Chamber

[John Healey]

I will indeed. My hon. Friend speaks for the House, and it is a message that I made sure the Secretary of War, Pete Hegseth, heard directly from me on behalf of the UK people.

[John Glen (Salisbury) (Con)]

The Secretary of State is a former distinguished Treasury Minister. Government is about taking decisions when things change. It is welcome that the Chancellor has addressed the heating oil crisis, but what will the Secretary of State do to make the Chancellor come to terms with the changes over the last few weeks, and to provide some additional support so that the defence investment plan will do justice to his ambitions?

[John Healey]

The right hon. Gentleman is right about the rising demands on defence. That point was reflected in the Prime Minister’s speech to the Munich conference last month, in which he said that

“hard power...is the currency of the age”.

We know that we need to spend more faster.

Ministry of Defence: Palantir Contracts

John Glen Excerpts

Tuesday 10th February 2026 Commons Chamber

[Luke Pollard]

I appreciate the right hon. Gentleman’s long-standing position on a number of the items he asks about. I have been clear to the House today that we will continue to work with our US friends—they are our closest defence and security partner. Where appropriate, we will look at working with US technology firms that can provide best-in-class products that deliver increased defence for our armed forces and our nation. We will continue to do that, as well as investing in UK firms.

[John Glen (Salisbury) (Con)]

I am not qualified to make observations about the enduring value for money or effectiveness of Palantir, but I am concerned that Mandelson’s dynamics with every aspect of this Government have toxified the integrity of their processes. Unless the Minister can make absolutely clear what quiet, unspoken influences Mandelson had on this follow-on order with Palantir, people are bound to question the integrity of the process. To respond to the Minister’s earlier point, if we are to have a viable alternative and meaningful competition in future, he will need to do a little more to advance the case for alternatives, beyond just saying that he has an SME strategy.

[Luke Pollard]

The right hon. Gentleman is right; it is important that people can have confidence in the system, including the procurement system. As I have set out to the House, the decision to extend the contract with Palantir was originally signed in 2022 by the previous Government, of which I think he was a part at the time. That decision was made by the Secretary of State, and by the Secretary of State alone.

I do want to see more British AI companies working in defence—something we have been very clear about. Indeed, I think even the last Government set out an ambition to do more in that space. We have stepped up to make sure we can grow our own indigenous AI industry, with its software and services able to be onboarded into a more AI-friendly defence environment, because AI provides a decision advantage for our forces that is necessary to keep our country safe. However, I take very seriously the points that the right hon. Gentleman has made, and when we publish the information that we have committed to publish, that will hopefully answer some of his questions.

Ukraine and Wider Operational Update

John Glen Excerpts

Wednesday 7th January 2026 Commons Chamber

[John Glen (Salisbury) (Con)]

I thank the Secretary of State for his update. He is a serious and experienced politician, and I have no doubt that he always acts in the national interest. What concerns me is the gap between the coherence of NATO and its approach—the approach that he has set out that we will take if a peace agreement can be found in Ukraine—and the determination that we are seen to have to meet the new level of threat from Russia and elsewhere in the world with respect to our commitment on defence spending. I respect that he asserts that the Government are committed to 3% between 2029 and 2034, but with the greatest respect, there is a great difference in the timeframe between the start and end of that five-year window. In previous generations this country has had to make sacrifices to defend itself. I think that he needs to think about whether we should be making that case now, so that we can be ready for what may be ahead of us.

[John Healey]

The right hon. Gentleman was a distinguished Government and Treasury Minister in his time. He will recognise that the commitment we have made and the plan we have now mark the biggest increase in defence spending since the end of the cold war. He will also recognise that we are building a new deal for European security. It is an important part of NATO, but it goes beyond NATO, and we will continue to do that.

Oral Answers to Questions

John Glen Excerpts

Monday 15th December 2025 Commons Chamber

[Al Carns]

The hon. Member makes an exceptionally valid point. Just last Thursday, we launched the Military Intelligence Services that are primarily about co-ordinating all of our intelligence capabilities to ensure that we can identify, deter and defeat threats should they be posed towards the UK, our critical national infrastructure or any of our sensitive sites. It is worth noting that engagement between the Military Intelligence Services, our defence intelligence and all our other agencies goes hand in glove with our like-minded European allies fighting for democracy and freedom all over the world.

[John Glen (Salisbury) (Con)]

10. What discussions he has had with service chiefs on the proposed level of spending in the forthcoming defence investment plan.

[Gregory Stafford (Farnham and Bordon) (Con)]

19. What discussions he has had with service chiefs on the proposed level of spending in the forthcoming defence investment plan.

[The Minister for Defence Readiness and Industry (Luke Pollard)]

The forthcoming defence investment plan has been informed by a range of inputs and perspectives, including those of service chiefs. These contributions have been critical in delivering on the strategic defence review and in enabling the transformation within defence that is necessary as we move towards warfighting readiness.

[John Glen]

I am a former Chief Secretary to the Treasury, and I have seen reports that service chiefs are drafting letters to the Secretary of State warning of their concerns about whether enough money is going into defence. When the delayed defence investment plan is produced, will it give clarity on when the Government will reach the critical 3% threshold? To be credible, the plan needs to distinguish between the start of the next Parliament, which will be in 2029, and the end of it, which will be in 2034. If the plan does not do that, no one will take the aspiration seriously.

[Luke Pollard]

I know that the right hon. Member has strong views on defence, as do I. As a Government, we are increasing defence spending, with £5 billion extra in our budget: it will be 2.5% of GDP by 2027 and 3% of GDP in the next Parliament. The strategic defence review will be implemented by the defence investment plan. That will set out what capabilities we are buying and how we can improve our warfighting readiness. He will have to wait a wee bit longer as the work continues to deliver that plan very soon.

Oral Answers to Questions

John Glen Excerpts

Monday 30th June 2025 Commons Chamber

[Luke Pollard]

We are proud to be investing in Operation Renovator, our contribution to helping injured Ukrainian soldiers to recover and return to the fight to guarantee the safety of their nation, and we will continue to support that operation and our Ukrainian friends for as long as it takes.

[John Glen (Salisbury) (Con)]

Infantry regiments cite difficulty in recruiting in their traditional communities and recruitment grounds. Further to the exchange between the Secretary of State and the hon. Member for Epsom and Ewell (Helen Maguire), may I ask what more can be done to encourage, specifically, young British men to join the Army?

[Luke Pollard]

Last year 165,000 young people tried to join the British Army. We hired 9,500 of them, but 84% left because the process was too long. We have a superb “attract feature”, but we need to be better at converting, and we are making progress in that regard, although there is more to be done. I am happy to meet the right hon. Gentleman if he has any ideas that might support that.

Strategic Defence Review

John Glen Excerpts

Monday 2nd June 2025 Commons Chamber

[John Glen (Salisbury) (Con)]

I very much welcome the aspirations of this strategic defence review and welcome the statement on page 7 that,

“We will develop a new Defence Investment Plan”.

However, as the Secretary of State knows from all the Budgets and fiscal events he has sat through, he cannot give the House a categorical assurance over future spending commitments, so will he make it clear to the House what decisions he is prepared to make with respect to the existing commitments such that he can secure that additional funding at subsequent spending reviews and Budgets? I hope that when he comes clean completely to this House, he will make clear that there will be considerable ongoing investment in the Defence Science and Technology Laboratory at Porton Down, which does an enormous amount to secure understanding of future technologies in the defence arena.

[John Healey]

The delivery of the SDR vision can only be done because of the commitment that this Government have made to increase defence spending. The defence investment plan is a new investment framework and a new investment programme, developed in the context of and defined by this SDR vision. The work on the new investment plan will be completed and published in the autumn.

Defence: 2.5% GDP Spending Commitment

John Glen Excerpts

Monday 11th November 2024 Commons Chamber

[John Healey]

Indeed. The forces families who support those who put on the uniform are too often overlooked, which is one reason why we introduced legislation last week for an independent armed forces commissioner, as we promised to do at the election. The holder of this post will report directly to Parliament, will have access to personnel, sites and information, and will be able to look into the concerns of not just those who serve but the families who support them, in order to improve service life for the future.

[John Glen (Salisbury) (Con)]

May I commend to the Secretary of State the role of Ploughshare, which is used to deal with the increasing commercialisation of opportunities at the Defence Science and Technology Laboratory at Porton Down, in my constituency? In the context of the Ministry’s holistic review, which is now under way, will he undertake to ensure that that organisation is not held back from extending its opportunities to commercialise assets emerging from MOD research?

[John Healey]

One of the weaknesses in our system is that the often-excellent innovation, research and development does not get developed, invested in or commercialised, so potentially brilliant small companies do not grow and expand. I have to say to the right hon. Gentleman that I am not familiar with Planshare—[Interruption.] Ploughshare. I did not even hear the name correctly. If the right hon. Gentleman would like to write to me with some details, I would welcome his letter and certainly have a look.