Defence Funding

Lord Alton of Liverpool Excerpts

Thursday 16th May 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am very happy to reiterate what I said about the Government’s commitment to the defence industry, ensuring that it receives the amount of private sector investment it needs. My noble friend may have seen that, to that end, there was a joint government/ Investment Association statement to fund managers that gave exactly the clarity he seeks.

[Lord Alton of Liverpool (CB)]

My Lords, notwithstanding that the 2.5% by 2030 is welcome in comparison with where we have been, was not my noble and gallant friend right to remind the Minister and the House of that fact—not least in the context of the International Relations and Defence Committee report two years ago, which urged urgency in addressing the multiple threats from dictators in Russia, China, North Korea and Iran? Is not the noble Baroness, Lady Goldie, who has huge experience in this area, right to look at innovative and different ways of adding to what we can do in a more urgent manner? To that end, will the Minister consider a private round table discussion here in the House to explore that idea further, so that some of the figures that have just been mentioned might be laid before us?

[Baroness Vere of Norbiton (Con)]

The noble Lord seems to imply that this is a timing issue. The Government have heard all the messages coming from various quarters about the urgency and the threats we face. We do understand them, but the funds we are now going to put into the system are timed such that they can be most effective. For example, we will be spending on firing up the UK industrial base, but that cannot happen overnight. Our defence companies need multiyear certainty, which, of course, we get from the £10 billion commitment to a new munitions strategy, for example. Again, that does not happen overnight. We are content that the timing is right. As I say, we do not intend to issue defence bonds.