Ministry of Defence: Equipment Plan

Lord West of Spithead Excerpts

Thursday 7th December 2023 Lords Chamber

[The Earl of Minto (Con)]

My noble friend makes two very good points. One is about the extremely complicated supply chain that the defence industry has to follow and the extreme pressures that inflationary costs bring to bear on that. It is not just headline inflation; the inflationary costs go from raw materials right through to the completed product. It is extraordinary and very varied. The question of the skills gap is at the heart of one of my right honourable friend’s tasks in the other place in ensuring that British industry, particularly organisations such as BAE Systems, is sufficiently available to get the skills.

[Lord West of Spithead (Lab)]

My Lords, the report is extremely worrying. The Government seem to have the ability to talk as if these things are not crucial. There is no doubt that we need more money spent on defence. I understand that we are looking at 2.5% when the situation allows. Yes, we are very short of money, but sometimes, if things are so dangerous and worrying, you have to adjust your priorities.

We seem to be lulling ourselves into a false sense of security. If the Government really think that our military is being sufficiently funded and all things are rosy, I am very worried. If that is just what they are saying to put a good face on it here, fine, but I have a horrible feeling that they believe things really are rosy. I ask the Minister to look at the real impact of this NAO report, because there is no doubt that things we have been promised will not come.

[The Earl of Minto (Con)]

My Lords, I assure the noble Lord that the Government take the report extremely seriously, as I said to the noble Lord, Lord Coaker. An enormous amount of work is going on in the department to look at the changing defence requirement for the next 10 years and the impact that it is likely to have on the cost implications. Everybody is fully aware that the Government wish to get to 2.5% as a minimum and I am sure that, when fiscal conditions allow, that will be delivered.