Oral Answers to Questions

John Healey Excerpts

Monday 7th November 2022 Commons Chamber

[Mr Speaker]

I call the shadow Secretary of State.

[John Healey (Wentworth and Dearne) (Lab)]

It was an honour to join you, Mr Speaker, the Canadian Speaker, the Defence Secretary and other Members of the House earlier today for the opening of the constituency garden of remembrance. At last week’s Defence Committee, the Secretary of State was asked when the MOD would sign a contract to make the new next-generation light anti-tank weapons that are needed both for Ukraine and to restock the British Army. He said:

“We have signed the first contract for next year.”

If the Defence Secretary was correct, Saab would have notified the market, but it has not. Would the Defence Secretary like to correct the record, and will he confirm when the MOD will get its act together and get that contract in place for new UK production, as this is day 257 of Putin’s war on Ukraine?

[Mr Wallace]

I am sorry to disappoint the right hon. Gentleman, but I did not say in my evidence that it was with Thales that I placed a contract for NLAW replacement, and many other people can give us access to NLAWs.

--- Later in debate ---

[Mr Speaker]

I call the shadow Secretary of State.

[John Healey (Wentworth and Dearne) (Lab)]

I welcome the Defence Secretary’s news that the vanity project of the previous Prime Minister, the right hon. Member for Uxbridge and South Ruislip (Boris Johnson)—the flagship—will be scrapped, and the spending switched to purposes that will help defend the country. Ahead of the Chancellor’s autumn statement, the Defence Secretary told the Select Committee last week

“I need money to protect me from inflation”,

yet in the current spending settlement, Defence is the only Department with a real-terms cut in its revenue budget. Why did he ever agree to that?

[Mr Wallace]

First, on that particular question, the right hon. Gentleman will know that when I got my defence review—a year earlier than everyone else in the spending review—the figure for GDP inflation used by the Treasury was different from that used now. He will be aware that inflation has gone up since the basis of that calculation was made, which is why I said at the Select Committee that I would like to be insulated from that inflation. I will have my discussions with the Chancellor and the Prime Minister this week, and then we will see where we get to.

[John Healey]

When the Secretary of State agreed that budget, it was a £1.7 billion real-terms cut in the revenue budget. Now, he says that inflationary pressures on his budget for the next two years are about £8 billion. How much does Defence actually need from the Chancellor on the 17th to plug this budget black hole that has opened up on the Secretary of State’s watch?

[Mr Wallace]

First, I do not agree with the premise that I agreed to a £1.6 billion reduction of the resource departmental expenditure limit. At the time, it would have reduced in the fourth year of its profile—it was a four-year profile, if the right hon. Gentleman remembers—but after a £24 billion increase, which is nothing that the Labour party has ever committed to. It would have shown a reduction in the last year, yes, but a real-terms freeze. However, inflation is significantly higher than it was all those years ago, and that is why I am going to see the Treasury, the Chancellor and the Prime Minister to see what I can get to make sure we protect our armed forces and our current plans from inflation.