Fiscal Policy: Defence Spending

Julian Lewis Excerpts

Monday 27th January 2025 Commons Chamber

[Luke Pollard]

It is certainly true that the last time this country spent 2.5% of GDP on defence was under a Labour Government. The Tories cut defence spending as a percentage of GDP over their time in power. It is important that the strategic defence review wins cross-party support when published. I hope that the shadow Defence Secretary will be able to offer the Government a common position, so that what is published will be not just Labour’s defence strategy but Britain’s defence strategy, and we can be strong at home as well as secure abroad.

[Sir Julian Lewis (New Forest East) (Con)]

If Labour colleagues are going to insist on reiterating that the last time 2.5% of GDP was spent on defence it was by a Labour Government, I suppose I have to point out that the last time 3% was spent by any Government it was by a Conservative Government, and the last time 4% was spent by any Government it was by a Conservative Government. Both those figures were some time after the fall of the Berlin wall. When the Berlin wall was still up, under the present accounting system we were spending up to 5.5% on defence, so please can everyone stop obsessing about 2.5% and when it will come in, because we need a lot more?

[Luke Pollard]

I have a lot of time for the right hon. Gentleman. He did not plug his “Shifting the goalposts?” Defence Committee report, which clearly set out changes in GDP spend on defence. I believe that he used the report to argue for more defence spending when his party was in power. Now that we are in power, we are doing it: we increased defence spending by £3 billion in the Budget and will lay out a path to 2.5% in the spring.