Defence: Budget

Lord Boyce Excerpts

Wednesday 17th June 2015 Lords Chamber

[Lord Boyce (CB)]

My Lords, I declare my interests as in the register. SDSR 2010 was not sound. It failed lamentably in predicting the crises that have cropped up in the last five years and, for example, removed our carrier capability just as it could have been used to great effect off Libya. In all, it left our forces fundamentally weakened. This was acknowledged by the Prime Minister in 2010 when he said:

“My own strong view is that this structure will require year-on-year real-terms growth in the defence budget in the years beyond 2015.”

Notwithstanding that, and given the short time given to compile it, this SDSR looks like being a thinly disguised cuts exercise that will emerge with no properly thought-through strategic vision or recognition of threats such as those posed by Russia. Force 2020 is a distant pipe dream. It seems to be on track to reinforce the perception around the world that we are a “has-been” and no longer a serious player—especially on the part of the United States. We should be particularly alarmed by the latter; a huge, unquantifiable amount comes our way in defence terms, underpinned by the United States’ confidence in our capability. We are seriously imperilling this.

Much has been said this evening about the totemic 2%, and I use the word “totemic” advisedly. This is about more than just money; it is about leadership. It is no use Ministers saying that we are better on defence spending that other European NATO partners. Surely the United Kingdom should be above chasing the lowest common denominator. The Prime Minister set the 2% challenge at the NATO Summit in Wales—he needs to follow his own lead. We have, by the way, already sunk below 2% if you really look at the figures, even allowing for the creative accounting by the last Government in sweeping into the 2% items previously excluded, such as the costs of contingency operations. I have no doubt that further fudging is on its way.

If the Government are prepared to ring-fence aid to foreign countries, it seems bizarre that we are not prepared to do at least the same for the defence of our own country. It is interesting to note that some difficulty is being experienced in spending the aid budget at the rate it needs to be of £30 million a day. I am not surprised—nor will I be about how much of that will be wasted. Perhaps the Minister would like to comment on that. Is he prepared to say whether part of our strategy is to be a global player? If it is, he should recognise that we need to see a commitment to a bigger defence budget—or at least 2% unfudged—to allow us to have a global footprint and, especially, our destroyer frigate force, which is, as I have said before in this place, anorexic.

Turning briefly to the nuclear deterrent, it is good to see the Government’s affirmation that we should replace our Vanguard-class Trident submarines with four new boats. I recognise that the main gate for this is not until next year, but perhaps the Minister could say why it is not possible to get this intent approved in principle now. Finally, I totally endorse the comments made my noble and gallant friend Lord Craig of Radley regarding attrition.