Integrated Review: New Ships

Lord West of Spithead Excerpts

Monday 25th January 2021 Lords Chamber

Asked by

[Lord West of Spithead]

To ask Her Majesty’s Government, further to the statement on the Integrated Review of Security, Defence, Development and Foreign Policy by the Prime Minister on 19 November 2020 (HC Deb, cols 488–9), how many of the new ships have been ordered; and, if none, when the first orders will be placed.

[The Minister of State, Ministry of Defence (Baroness Goldie) (Con) [V]]

My Lords, the department is currently developing plans for a new class of frigate and research vessel to support UK interests. Following the concept phases, yet to be launched, programme and procurement strategies will be determined. However, the Type 32s will be UK-built—a clear demonstration of both this Government’s and the shipbuilding tsar’s commitment to supporting UK industry and to ensuring the Royal Navy continues to have the modern ships it needs.

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[Lord West of Spithead (Lab)]

My Lords, I thank the Minister for her Answer. She will not be surprised that jam tomorrow has been a regular feature of defence reviews. I am concerned that the financial pressures the MoD is under, despite the welcome four-year settlement and additional funding announced last year, will affect build programmes and impact on the already small and ageing frigate force. The recent NAO review of the MoD equipment plan states that it remains “unaffordable”. The MoD estimates a £7.8 billion shortfall, but it could be as high as £17 billion. Leading up to the long-trumpeted integrated review, has there been any discussion about putting the capital costs of the deterrent submarine replacement once again outside of the defence budget, where it was until placed inside by Chancellor Osborne in 2010? It would resolve the MoD funding problem at a stroke.

[Baroness Goldie (Con) [V]]

My Lords, all MoD obligations and commitments, including the nuclear deterrent, are budgeted for in the MoD budget. While I understand the noble Lord’s concern about the cost of the equipment plan, I reassure him that the department is taking important steps to address that. I think he is looking through his glass half-empty, rather than his glass half-full. Quite simply, the recent financial settlement for the MoD and the Prime Minister’s commitment to new naval assets mean that not only will our fleet grow for the first time since World War II, but its high-end technological capabilities will allow it to provide a better contribution and to retain a first-class Navy up to 2040 and beyond.