Defence Acquisition Reform

Lord West of Spithead Excerpts

Thursday 7th March 2024 Lords Chamber

[Lord West of Spithead (Lab)]

My Lords, war is raging in Europe, the Levant, the southern Red Sea and Sudan. We are in the most dangerous and hostile world we have been in for many years and, amazingly, the Government have not increased or provided any extra spending for defence in yesterday’s Budget. State-on-state warfare is back. Does the Minister agree that, in terms of procurement, we must look much longer-term? For example, the carriers had £1.5 billion added to their cost because, to get the funding line straight in MoD, they stopped work on them for two years—a ridiculous thing to do. Equally, we are now desperately trying to get enough frigates into our Navy because we took too long ordering them. The SMEs have a real problem. We need to have a drumbeat of orders looking to the future, which we should commit to, because we now know that we are in a world where there is state-on-state warfare. More importantly, does the noble Earl agree that that will provide some resilience, so that, for example, when we start giving ammunition stocks or whatever to people, the firms involved have built into their whole organisation a structure that enables them to be replaced?

[The Earl of Minto (Con)]

I agree with almost everything that the noble Lord said. Certainly, the immediacy of the situation has already introduced into the procurement cycle within the Ministry of Defence a much more nimble way of acquiring the needed munitions, both for gifting and for our own stockpiles. We have started to invest substantial sums of money in the industrial base. If you think about this way of proceeding, it is very much a joint relationship with the industrial manufacturers that will deliver exactly what we want here, as far as both the primes and the SMEs are concerned. It is being driven by the current situation and the rate of technological advance.