(2 years, 1 month ago)
Commons ChamberI very much recognise that this country faces very difficult headwinds, as I said in the opening of my speech. Obviously the extensive support package that we have put out there for consumers and businesses will offer some relief from some of those pressures, but the major challenge we face as a country and an economy is a level of inflation that we have not seen for 41 years. The measures in this statement are designed to tackle that and, as the OBR recognises, make this recession shorter and shallower than it might otherwise have been.
I will now turn to the armed forces and security. We already know that Putin’s aggression has piled pain on citizens across the free world, as well as brave protesters in Russia. As President Ronald Reagan once said:
“Optimism comes less easily today, not because democracy is less vigorous, but because democracy’s enemies have refined their instruments of repression.”
Today there is still nothing certain about democracy’s victory, but if one thing does give me optimism, it is the courage of our armed forces, so we will continue to maintain the defence budget at at least 2% of GDP, to be consistent with the enduring NATO commitment. Of course, we also stand up for what we believe in through overseas aid. The OBR’s forecast shows a significant shock to the public finances, as I have set out, so it will not be possible to return to the 0.7% target until the fiscal situation allows, but I want to reassure the House that we remain fully committed to the target, and the plans that I have set out today assume that official development assistance spending will remain at around 0.5% for the forecast period.
Two per cent. for defence is simply not enough; 3% is far nearer the target. It was 5% in my day, and all the kit is much more expensive, so 3% is the minimum that we need to spend. Will my right hon. Friend tell the House when we will look at this again? I believe there will be another review of the review. When will that take place, and when will we have the Government’s final decision on what they are going to spend on our armed forces?
I am grateful to my hon. Friend. The integrated review is under review at this time. That needs to be done urgently—I think in the next three or four months—to enable us to come to an assessment of what that means for our defence spending. But I will say that, as I know he will know, we did front-load a significant increase in the defence budget, of £24 billion, over this spending period. I would work on the basis that, while this must be our top priority, it must be based on an updated assessment of the need, in which there have been a lot of changes in recent times.
I am conscious of time. Opposition Members have said in recent days that we needed a statement that provided fairer choices for working people and a proper plan for growth. I maintain that this is what the autumn statement delivers: not a return to austerity, but a fair way to shelter from the economic storm and encourage its passing as soon as possible. As we weather it, we will do so with resilience and compassion, we will give a safety net to our most vulnerable, we will invest for future generations, and we will grow the economy and improve the lives of people across the United Kingdom.
(9 years ago)
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Does my hon. Friend not recognise the absolute imperative, however, of having clarity about the infrastructure costs required, and particularly the cost of dualling the track between Yeovil and Salisbury, which would be key to unlocking a secure future for his plans?
My hon. Friend makes a very good point. In fact, it is key, as the Minister well knows, because this is a point that we raised with her only an hour or two ago. I say to her gently and humbly that if Network Rail could possibly do the study and come back with some sort of affordability plan, that would help us. We went away from the meeting that the Minister kindly held feeling very positive. At the moment, the local enterprise partnerships all down that line—this is the plan—would be very keen to draw up some sort of business plan and come back to her. What we do not want—my hon. Friend the Member for Salisbury (John Glen) mentioned this—is to do all the work, and for Network Rail to come back and say, “That’s not how we did it,” or “They have missed out this or that,” or “They haven’t put this into the equation.” That would be unfortunate, particularly if a great deal of money was spent on the report that the LEPs are considering drawing up. Some clarity from the Minister at the end of the debate would be most helpful.
It is estimated that the plan for a service via Yeovil would take between three and five years to complete; as with all these things, it would not happen immediately, but it chimes with the Dorset local master plan to reconnect the south and north of the county by train for the first time in almost 30 years, and to link Dorchester and Weymouth to Exeter in the west. As the Minister knows, the Members to my west, east and immediate north are all involved in this potential project and would benefit equally. We are all in this together.
I and many others believe that the proposal would have a dramatically beneficial effect on Weymouth and Portland and, as discussed earlier with the Minister, the whole region. Weymouth and Portland would be connected to a vital east-west arterial route, and that would promise better access for businesses, visitors and tourists, and hopefully generate more investment in the resort.
It is lovely to see my right hon. Friend the Member for West Dorset here. Dorchester would play a key role because it is in a key location. With the housing on the Prince of Wales’s land—this was discussed with the Minister earlier—and other developments across that part of the world in the years ahead, we must have an updated, modern railway system; otherwise, we will simply not cope.