Tuesday 4th March 2025

(2 days, 5 hours ago)

Lords Chamber
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Baroness Smith of Basildon Portrait Baroness Smith of Basildon (Lab)
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I am grateful to the right reverend Prelate. I think that most people are not aware of the depth and breadth of the support for Ukraine. He made a powerful point on training and Interflex. The answer to his question is yes, that does continue and we are committed to it. I understand the disappointment around the cut to the ODA budget. It was a great disappointment to us as well; it was done with no pleasure or glee. The right reverend Prelate may be aware of the comments made by the Prime Minister in the other place yesterday that he wants to

“work with others … across the House … on other ways of raising money and finance for development and aid overseas”.—[Official Report, Commons, 3/3/25; col. 29.]

He has already met with the president of the World Bank to look at some of the options. We have a deeper commitment to returning to 0.7% as we are able to do so.

I think that the public are becoming more aware of the need for defence spending. It has been taken for granted for many years. We had the dividends of peace post the Cold War. The world is changing. We have to be part of that discussion and that awareness by doing our bit to explain to the public and engage with them on why this is necessary.

Lord Wigley Portrait Lord Wigley (PC)
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My Lords, on that very point, is it not the case, if we do increase defence expenditure substantially to replace the withdrawal of American expenditure to some extent and for other reasons, as it seems we have to, that this represents a totally different situation from that which existed last July, at the time of the general election? Is it not the case that pledges given not to increase taxation in those circumstances have less relevance today? Surely it would be fairer all the way around if the cost of defence expenditure fell on the broadest shoulders that can bear it, not on the poorest people of the world.

Baroness Smith of Basildon Portrait Baroness Smith of Basildon (Lab)
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My Lords, there are two points there. First, the strategic defence review is coming up, and we will have the response of the noble Lord, Lord Robertson, who is not here at the moment. He has spoken already about the strategic defence review that he is leading, and the Government will be informed by that. It is probably above my pay grade to touch on the Chancellor’s toes before the next Budget. The Government are taking all these issues into account to look at how we can best do this, but we have also had quite stagnant growth in this country for some time. Increasing the growth of our economy will be crucial to looking at how we fund all our commitments overseas and public services here.