Integrated Review: Update

Lord West of Spithead Excerpts

Tuesday 31st January 2023 Lords Chamber

[Baroness Goldie (Con)]

The noble Baroness will be aware that a percentage of GDP is the model that has been adopted increasingly by other states in consequence of the approach that the United Kingdom has taken to defence expenditure. In relation to current expenditure, the noble Baroness is right that we face challenges of inflation and fluctuating currency, but we have been able to make greater use of index-linked fixed price contracts, and we use pricing mechanisms where inflation risk sits with suppliers. Indeed, that has prevented higher prices being passed on. We also have forward purchasing of fuels, utilities and foreign exchange—all of which mitigates the corrosive impact of inflationary pressures.

[Lord West of Spithead (Lab)]

My Lords, no matter how it is dressed up, it is quite clear, because even the Government have admitted it—the Secretary of State has admitted it—that we have underfunded our Armed Forces and they are hollowed out. Will we ensure that all three services have an increase in spend? For example, although there is a lot of talk about the Army, when one looks at undersea cables and the huge growth in the Russian submarine force, there is no doubt that there is a maritime threat as well. All three services must be looked at, and there is an absolute need to invest now.

[Baroness Goldie (Con)]

I hold the noble Lord in very high regard, but I do not hold the purse strings of government. However, he sends a consistent message, and I am sure that it is resonating beyond this Chamber.