Fiscal Policy: Defence Spending

Lord West of Spithead Excerpts

Monday 3rd February 2025 Lords Chamber

[Lord Coaker (Lab)]

I thank the noble Lord for his important question. Notwithstanding the debate about the total quantity of defence expenditure, he is right to point out the changing nature of warfare. We are looking to see how we can further protect the underwater cables that bring energy to this country; he might have seen some of the debate that took place last week on that. The RFA “Proteus”, which was bought for the RFA by the previous Government, is one example of how we do that. The defence review is looking at the purchase of a second ship, and various other capabilities are being developed. The noble Lord also made the point about our own critical national infrastructure. There is no doubt that we will have to consider homeland security and how we protect that infrastructure, and the defence review will do that. As I said earlier, hybrid warfare and the way systems are impacted by data and those sorts of attacks also needs to be considered.

[Lord West of Spithead (Lab)]

My Lords, it is absolutely clear to anyone who knows anything about defence that we need to spend more on our defence forces. I do not think I have come across anybody—including the students at Cambridge the other day—who does not realise that that needs to be done. Presumably, the reason why it is taking time and we are not moving forward is the fiscal policy. Does my noble friend the Minister agree that if you lose a war, things such as the National Health Service, education and social care matter not one jot? Therefore, one ought to think very hard about making sure we prevent a war. One way of doing that is to ensure that we are properly armed, and that needs money.

[Lord Coaker (Lab)]

I congratulate my noble friend on winning the debate at Cambridge; I meant to say that earlier. He makes a point about additional money, and there will be a debate about the overall level. I know my noble friend has his views about the level of defence expenditure. He will know that the Government will set out a pathway to 2.5% in the spring. As part of our increased defence expenditure, we will spend £3 billion extra in the next financial year. Of course, alongside all that, he makes the really important point—again, I have made it from the Dispatch Box—that part of the way you prevent war is by preparing for war. That is an unfortunate state of affairs. Deterrence is important. As a country and in our alliances across the world, we need to consider not only how we fight wars but how we prevent them, and deterrence has to be part of that.