Fiscal Policy: Defence Spending Debate

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Department: Ministry of Defence

Fiscal Policy: Defence Spending

Jonathan Brash Excerpts
Monday 27th January 2025

(3 days, 23 hours ago)

Commons Chamber
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Luke Pollard Portrait Luke Pollard
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It is certainly true that we have a manifesto commitment to put the armed forces covenant fully into law. That will come forward in the armed forces Bill in due course. We set out from the Dispatch Box last week that the inheritance tax does not apply to those members of our armed forces who die on active service. The other areas are subject to a Treasury consultation, and the Treasury will make an announcement in due course.

Jonathan Brash Portrait Mr Jonathan Brash (Hartlepool) (Lab)
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Is it not the reality of the past 14 years that we have fewer soldiers and fewer Navy and Air Force personnel and that, in an uncertain world, we need to reverse that trend and grow our military forces to deal with those threats?

Luke Pollard Portrait Luke Pollard
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It is certainly true that this Government inherited an armed forces that, as world-class as they are, were struggling with falling morale, poor housing and capability gaps thanks to 14 years of underfunding and hollowing out. The strategic defence review will set out what capabilities we need to meet the threats, and the path to 2.5% will set out what will be spent on those capabilities. We also need to improve how we spend because the defence procurement system is broken— something that was well highlighted by the hon. Member for South Suffolk (James Cartlidge) and the right hon. Member for Rayleigh and Wickford (Mr Francois) when they were in government. That will be fixed, and we will ensure that we have a strong set of armed forces able to deter aggression and defeat it if necessary.