Defence: Expenditure

Lord West of Spithead Excerpts

Tuesday 11th June 2019 Lords Chamber

[Earl Howe]

My Lords, we recognise that there is an affordability gap in our equipment programme. I have said this before. If we did nothing, the programme would be unaffordable. But we are taking action and, with careful management, particularly using the contingencies we have and budgeting for efficiencies, which we are already scoring, we believe that the equipment programme will be affordable.

[Lord West of Spithead (Lab)]

My Lords, I am afraid that the noble Earl’s Answer was rather complacent. There is no doubt that this is a clarion call from the Foreign Secretary. As was said, he is in the best position to judge what the balance between hard power and soft power should be. Soft power is very important, but we have whittled hard power down since 2010. It has reduced and reduced. We have a surface shipbuilding strategy with only three ships in the next 10 years, so far. If you have a shipbuilding strategy, you need ships. There is a hollowing out of defence. Can I ask the noble Earl what the plans are now within the MoD, bearing in mind that there are huge shortfalls because the savings measures to make good the figures that they are balancing are just not there, and the comprehensive spending review seems to be shot to ribbons? What are the MoD plans for actually moving ahead? Are they planning more cuts, or are they planning to enhance the areas where there have been reductions and hollowing out?

[Earl Howe]

My Lords, we should not overlook the fact that we have a £39 billion core defence budget. That will rise to almost £40 billion by 2020-21. The Ministry of Defence’s budget will rise by at least 0.5% in real terms every year of this Parliament. However, we come back to my noble friend’s Question about the percentages of GDP that we should be spending. If there is a right number for defence, it is the amount of money that is necessary to fund defence outputs. What should those outputs be? The answer—which I hope the noble Lord takes comfort from—is that the modernising defence programme has established a set of policy approaches which will help keep us on track to deliver the right UK defence for the coming decade, against the background of the threats facing us.