Defence Programmes Developments

Judith Cummins Excerpts

Wednesday 20th November 2024 Commons Chamber

[The Secretary of State for Defence (John Healey)]

With your permission, Madam Deputy Speaker, I will make a statement on defence programmes developments.

I have now been Secretary of State for four months, and it is an honour and a privilege to have this job. Every day I meet staff from the military, the civil service and industry who are totally inspiring and dedicated to keeping this country safe, often unseen and unheard by us and by the public. We are proud of their professionalism and thank them for everything that they do.

This is a new Government getting on with delivering for defence. We have stepped up support for Ukraine, signed the landmark Trinity House agreement with Germany, and given forces personnel the largest pay rise in more than 20 years. We have confirmed defence as a priority sector as part of the Government’s industrial strategy, and this week we secured the Second Reading of the Armed Forces Commissioner Bill to improve service life. Labour is the party of defence, and we will make Britain better defended.

We know that these are serious times. We have war in Europe, conflict in the middle east and increasing global threats. Technology is rapidly changing the nature of warfare, as we see right now in Ukraine. Before the election, we knew that there were serious problems with defence—one previous Conservative Defence Secretary told the House that our armed forces have been “hollowed out and underfunded” over the last 14 years.

However, as I have told the House since taking office, the problems were even worse than we thought. The inheritance was dire: the state of the finances and the forces was often hidden from Parliament, with billion-pound black holes in defence plans, taxpayers’ funds being wasted, and military morale down to record lows. That is why we are taking swift action to inject investment, get a grip on Ministry of Defence budgets and kick-start much-needed reforms to start fixing the foundations for UK defence. I will update the House on what we are doing.

First, I will mention investment. In July, the Chancellor exposed the £22 billion black hole at the heart of the Government’s plans. There were hundreds of unfunded pressures this year and into the future. The first duty of the Government is to keep this country safe, which is why the Chancellor announced in the Budget that defence will receive a boost next year of nearly £3 billion to start to fix the foundations for our forces. The Chancellor also told the House that we will set a clear path to 2.5% of GDP on defence, which will be fully funded, unlike the Conservatives’ unfunded pre-election gimmick, which was never built into Government finances. This is not just about how much we spend on defence; it is how we spend that counts. That is why we are conducting a strategic defence review at pace to assess the threats we face and the capabilities we will need in the future. That is also why I have introduced tight financial controls on the Department, including a £300 million reduction in planned consultancy spending. We are getting a grip on MOD budgets and investing in people and future technologies.

Secondly, I will mention kit and capabilities. For too long, our soldiers, sailors and aviators have been stuck with old, outdated equipment because Ministers would not make the difficult decommissioning decisions. As technology advances at pace, we must move faster towards the future, so, with full backing from our service chiefs, I can confirm that six outdated military capabilities will be taken out of service. These decisions are set to save the MOD £150 million over the next two years and up to £500 million over five years—savings that will be retained in full in defence.

Alongside this statement, I have made a written ministerial statement outlining the detail of my decommissioning decisions. They include decisions to decommission HMS Northumberland, a frigate with structural damage that makes her simply uneconomical to repair; 46 Watchkeeper mark 1s, which are 14-year-old Army drones that technology has overtaken; and HMS Albion and HMS Bulwark, landing ships effectively retired by previous Ministers but superficially kept on the books, at a cost of £9 million a year. They also include decisions to decommission 14 Chinooks, some more than 35 years old, which will be accelerated out of service; two Wave-class tankers, neither of which has been to sea for years; and 17 Puma helicopters, some of which have more than 50 years of flying. Their service will not be extended. I recognise that they will mean a lot to many who have sailed and flown in them during their deployments around the world. They have provided valuable capability over the years, but their work is done, and we must now look to the future. All current personnel will be redeployed or retrained; no one will be made redundant. As the First Sea Lord said about the retirements,

“The threat is changing so we must have the self-confidence to make the changes required”.

Of course, we should be in no doubt that the future of our Royal Marines and its elite force will be reinforced in the SDR.

These are common-sense decisions that previous Governments failed to take. They will secure better value for money for the taxpayer and better outcomes for the military. They are all backed by the chiefs and taken in consultation with strategic defence reviewers. Allies have been informed, and we have constant dialogue with NATO. Those will not be the last difficult decisions that I will have to make, given the defence inheritance that we were left with, but they will help us to get a grip on the finances, and give us greater scope to renew our forces as we look towards the strategic defence review and spending 2.5% of GDP on defence. I thank the chiefs for their determination to work with me on this.

Thirdly, I will mention reform. Defence reform has been of little interest to recent Defence Secretaries—it does not make headlines or advance careers—but the way that defence works must change to deal with the increasing and diversifying threats. I recently launched the biggest reform programme in defence for 50 years to create a stronger UK defence centre, secure better value for money and better outcomes for our armed forces, and better implement the strategic defence review. Central to a reformed defence will be our new, fully fledged national armaments director, whose recruitment is under way. The Chief of the Defence Staff will oversee a new military strategic headquarters, operating from the end of 2024, where he will formally command the individual service chiefs for the first time. He will be central in prioritising investment and spending between the services. The permanent secretary will lead a leaner Department with more policy muscle and influence. These reforms will ensure faster delivery, better integration and clearer accountability across defence to make our forces fit to fight in the future.

Finally, I will mention our people. This Government are putting defence people at the heart of our defence plans. We inherited a Conservative crisis in military recruitment and retention; targets have been missed every year for 14 years and morale is at a record low. We cannot fix those deep-set problems overnight, but Ministers are on a mission to lift military morale. We have awarded the forces the largest pay increase in more than 20 years, and I can announce that from April, I am introducing a new £30,000 retention payment for a cohort of tri-service aircraft engineers who sign up for an additional three years of service. It will be open to around 5,000 personnel in total. From January, we have a new £8,000 retention payment for Army personnel who have served for four years. That will support 4,000 personnel a year for three years—12,000 troops in total.

I have set out where we were, and where we are going. We are in a new era of rising global tensions, and we need a new era for UK defence. To achieve that, the Government are investing £3 billion extra next year and setting a clear path to 2.5%. We are driving far-reaching reform and fixing the foundations for our armed forces to make Britain better defended, strong at home and secure abroad.

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Defence Secretary.

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[John Healey]

That was a rather wide-ranging response that spanned the fiscal position in 2010 and farming today. I remind the hon. Gentleman that the last time this country spent 2.5% on defence was in 2010 under Labour, and that the Tory plan to spend 2.5% on defence was a pre-election gimmick, announced four weeks before the election was called and never hardwired into any Government finances. That is why it was unfunded; that is why it was a pre-election gimmick; and that is why the Institute for Fiscal Studies called the plan “misleading”.

I readily pay tribute to Ben Wallace as one of my predecessors. The hon. Gentleman talked not about defence reform, but about the decision that Ben Wallace rightly made to step up with military aid to Ukraine, so that we led the field and made sure that other countries followed suit. We were proud to support those decisions in opposition, and we are proud to continue that UK leadership, and to help command the continued, united support for Ukraine.

I welcome the hon. Gentleman’s welcome for the retention incentives, which are for aircraft engineers, as well as the retention payments for the Army ranks. Those payments are for privates and lance-corporals; they stand as I have announced them, and will start from January. I am glad of his welcome for the decision I took on Watchkeeper. He did indeed launch a drone strategy as defence procurement Minister. He recognises that we are talking about a 14-year-old drone in the hands of the British Army, and that the innovation cycle for drones in Ukraine is two to three months. We can do better; the Army knows how it will do better, and it will replace Watchkeeper.

The hon. Gentleman also asked questions about helicopters, the future structure of our forces, and the capabilities we need. Those areas are being considered by the strategic defence review. As I said in my statement, I made today’s decisions in consultation with the reviewers, to make sure that they are aligned in their thinking, and in dialogue with NATO.

The hon. Gentleman mentioned HMS Albion and HMS Bulwark. Those ships were mothballed; there were no plans for either of them to go back to sea for nearly 10 years—until they were due to be taken out of service. They were not ready to sail or to fight. There are capabilities there that can be covered elsewhere. That will save us money every year—money that we can redeploy in defence, and put towards upgrading our forces and technologies.

The hon. Gentleman saw the figures before the election that I saw afterwards. He knows the truth of the black hole that his Government left across the board, but he did nothing in defence to get a grip on the budgets, or to decommission out-of-date kit. I am taking action now to strengthen defence for the future. These decisions are overdue, and the service chiefs support these changes, which means that we can move more rapidly—as we must, learning the lessons from Ukraine and recognising the changing nature of warfare and the rising global threats. We have to evolve our equipment, and invest in and prepare our forces for the future.

[Madam Deputy Speaker (Judith Cummins)]

I call the Chair of the Defence Committee.

--- Later in debate ---

[John Healey]

As I said in my statement, the decisions I have taken help us to get a grip of the MOD budget now and create greater scope to better implement the strategic defence review when it reports. These decisions, as I said, are overdue. They were ducked by Ministers in the previous Government. Further decisions about what to do with the decommissioned equipment have not yet been made, but when I make those decisions, I will ensure that I inform my hon. Friend’s Committee. I look forward to the grilling that he and his colleagues on the Committee are set to give me tomorrow morning, no doubt about this and a number of other things.

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

[Richard Foord (Honiton and Sidmouth) (LD)]

I declare an interest in that my nephew is an aircraft engineer with the Royal Air Force, so I shall not be commenting on the retention payment, much as it sounds very handsome.

I welcome the emphasis in the statement on defence people. A legacy of the last Conservative Government was that there was not enough emphasis on retaining brilliant people in the armed forces. With Grant Shapps, we saw a Defence Secretary who was fascinated by technology—he came to the House and made a statement about DragonFire—but missed the very important things that were slipping down the list, such as the platforms that we hear today are being decommissioned. So I welcome the pay rise for personnel, and I particularly welcome the retention payment for Army personnel who have served for more than four years, given that the legacy of Capita is an appalling one.

However, there are some alarming gaps. The new Chinook heavy-lift helicopters not coming in till 2027 leaves a very substantial gap of three years in relation to the 14 Chinooks. The new medium helicopter contract is not due to be awarded till next year. I question when the contract for the new medium helicopter will be introduced—perhaps not until the beginning of the next decade. The multi-role support ships are not due to come into service until 2033. I am alarmed at what that may do for the ability of the Royal Marines to operate in the littoral. I question that the statement said there was full backing from our service chiefs. Of course, there was: they have to salute, turn to the right and carry on. What was lacking was a statement about this being done in consultation with the strategic defence reviewers. Was this statement given their full backing?

--- Later in debate ---

[Fred Thomas (Plymouth Moor View) (Lab)]

A bit of this debate should be about honesty. If the Ministry of Defence were to step forward and say, “We want to modernise and be able to buy kit at scale and at pace, but we have a limited budget,” it would just be being honest and realistic to say that we have to let some things go.

With my Royal Marines background, I first went on Bulwark in 2017 on a training exercise, learning how to plan and execute raiding operations. I have fond memories of the ship, as do many in the Royal Marines, but that exercise was not conducted at sea; it was conducted with Bulwark alongside in Devonport, where it has remained for a number of years. Even then, we were told, “You will go not on this ship at sea. It will not happen.” People knew that at the time, so can we be honest?

On Plymouth and Devonport, where Albion and Bulwark are, and HMS Westminster, which the Secretary of State has also mentioned, may I ask him how the jobs and workers in Plymouth will be protected? With new submarines coming forward at huge scale, can we talk about the investment in Plymouth required—

[Madam Deputy Speaker (Judith Cummins)]

Order. I call the Secretary of State.

[John Healey]

My hon. Friend is right that too often decisions were ducked or Parliament was too often not fully informed when they were taken. The point he makes about the experience on Bulwark is telling. We do not have the capability, if it is incapable of sailing. We do not have the facility to train effectively on it, if all it can do is stay alongside. In practice, as I said earlier, Bulwark and Albion had been taken out of action; Ministers had just been unwilling to level with the public and with Parliament about that. I understand his interest in the case of Plymouth and Devonport. I have been a strong supporter in opposition and in government of the Team Barrow transformation approach. There is a case for looking at replicating a similar model in other parts of the country. For me, the first in frame would be Plymouth.