Fiscal Policy: Defence Spending
Debate between Luke Pollard and Wendy Morton(3 days, 18 hours ago)
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Luke Pollard
The armed forces parliamentary scheme is a brilliant scheme that introduces Members across this House to the important work done by our armed forces. As a Navy brat myself and the proud MP for Devonport in Plymouth, I know the importance of a strong Royal Navy, Royal Marines and Royal Fleet Auxiliary. The £9 billion announcement last week is an important part of securing our nuclear future, backing jobs across the country and supporting jobs across the entire supply chain—it makes Britain stronger.
Wendy Morton (Aldridge-Brownhills) (Con)
The armed forces covenant is a promise—a promise that together we acknowledge and understand that those who serve or have served in the armed forces and their families, including the bereaved, should be treated with fairness and respect. How is the imposition of inheritance tax on death in service payments of some families of deceased soldiers fair and consistent with that?
Luke Pollard
It is certainly true that we have a manifesto commitment to put the armed forces covenant fully into law. That will come forward in the armed forces Bill in due course. We set out from the Dispatch Box last week that the inheritance tax does not apply to those members of our armed forces who die on active service. The other areas are subject to a Treasury consultation, and the Treasury will make an announcement in due course.