Defence Spending

Mark Francois Excerpts

Thursday 19th June 2014 Commons Chamber

[The Minister for the Armed Forces (Mr Mark Francois)]

I congratulate my hon. Friend the Member for Basildon and Billericay (Mr Baron) on securing this important debate. Seventy years ago this month saw the success of Operation Overlord. I take this opportunity to pay tribute to the allied forces who crossed the channel on D-day and who were quite rightly commemorated at events in Normandy recently. Not least of those was former Royal Navy Lieutenant Bernard Jordan who slipped away from his care home to join his former comrades, but thanks to a comprehensive information-operations campaign, assisted by the national press, he mitigated the potential wrath of both Mrs Jordan and his care home on his return. I am sure that the House will want to join me in wishing him well on his 90th birthday, which falls this week.

On Tuesday, I was privileged to attend a memorial service for those members of the 7th Armoured Brigade who lost their lives in their recent tour of Afghanistan, reminding us all in this House that our armed forces continue to exhibit the utmost courage and bravery on our nation’s behalf.

Finally on personnel matters, I understand that my opposite number, the hon. Member for North Durham (Mr Jones), is getting married next week. [Hon. Members: “Ah!”] I wish him all the best for the future, but I must caution him that this key decision may have important budgetary consequences in the long term.

[Mr Jones]

It already has.

[Mr Francois]

Having paid tribute to our personnel, both past and present, I wish to focus now on the Ministry of Defence’s capital programme, which is the largest in Government, accounting for some 20% of total capital spending this year. Our equipment programme comprises some £164 billion over 10 years, and is already published in our defence equipment plan. This will ensure that the Royal Navy continues to be one of the premier navies in the world by procuring and supporting, among other things, two new 65,000 tonne aircraft carriers, with HMS Queen Elizabeth, the first of class, due to be floated up next month in Rosyth; seven Astute-class nuclear attack submarines; six Type 45 destroyers, plus the beginning of the transition from the Type 23 frigate to the new Type 26 global combat ship, which will maintain a force of 19 frigates and destroyers, but with other surface warships as well, including a strong amphibious capability led by HMS Ocean. That amphibious squadron will be able, arguably, to transport the most effective maritime infantry force in the world, the Royal Marines, who celebrate their 350th anniversary this year.

Crucially, we are also making full provision for the successor deterrent system, providing the ultimate guarantee of our national security, and a re-elected Conservative Government will continue with that programme. In mentioning this, I pay tribute to all those who have supported the UK’s continuous at-sea deterrent and who have made sure that since April 1969 the Royal Navy’s ballistic missile boats have not missed one single day on patrol.

Turning to the Royal Air Force, we are investing to enhance the Typhoon via tranche 2 and tranche 3 upgrades to maintain its battle-winning edge, and to procure the new F-35 Lightning II joint strike fighter, placing this country as the only level 1 partner with the US in this key programme. We will further extend our global reach via a highly capable air transport fleet represented by the C-17 and C-130 aircraft, which are now being reinforced by Voyager, as well as the new Airbus A400M Atlas, the first of which is due to enter service before the end of the year. Combined, that will provide us with one of the largest and most modern air transport fleets anywhere in the western world. In addition, we have just taken delivery of the first of 14 new heavy-lift Chinook Mark 6 helicopters at RAF Odiham, which means that the UK has the largest Chinook fleet in Europe.

As part of the next strategic defence and security review, we will be examining the question of a maritime patrol aircraft to see what, if anything, can be done about this area of capability. We will do that as part of the SDSR, and I know that my hon. Friend the Member for Beckenham (Bob Stewart) has taken a particular and long-standing interest in this subject.

As an ex-soldier, I should also add that we are ensuring that the Army remains well equipped. We will: upgrade the Warrior infantry fighting vehicle and also the Challenger 2 main battle tank; expand our fleet of battle-proven Foxhound armoured vehicles; upgrade our fleet of Apache attack helicopters; and procure the new Scout specialist reconnaissance vehicles.

Furthermore and importantly, we are significantly increasing our investment in cyber security—a point well made by my hon. Friend the Member for Plymouth, Sutton and Devonport (Oliver Colvile)—ensuring that our armed forces are equipped with cutting edge capabilities across all environments. That investment is not only securing the best possible military capability, but helping to secure UK jobs and growth to help complement our long-term economic plan.

[Sir Bob Russell]

Will the Minister give way?

[Mr Francois]

I will give way in a moment. UK defence exports in 2012 were assessed to be £8.8 billion, up from £6 billion in 2010, which is the second highest by value in the world.

I turn to overall defence spending and the defence budget. The defence budget this year is £33.6 billion, which makes it the fourth largest budget in Government. Defence spending will be a key issue at the NATO summit in Wales this September. My understanding is that the agenda has not yet been finalised, but we will certainly make the point that despite the fact that we have had to constrain UK public spending, UK defence spending has consistently met and exceeded the NATO target to spend at least 2% of GDP on defence. That point has been mentioned by almost every contributor to the debate. Indeed, we are one of only four NATO nations that currently meet that target. According to NATO, the UK has the second largest defence budget in NATO and the largest in the EU.

[Rory Stewart]

Do I understand that the Minister has formally committed, on behalf of the Government, to stick with that 2% base level on spending?

[Mr Francois]

The Chair of the Defence Committee pre-empts me. On current plans, defence spending will continue to meet the 2% target this year and next year. Decisions on public spending after financial year 2015-16 will be taken in the next comprehensive spending review, but that applies to all Departments and not only to the Ministry of Defence. I hope that that is a clear answer to his question.

At this juncture, it is important to recall that in 2010 we inherited a financial situation in the Ministry of Defence which was, to say the least, distinctly sub-optimal. It was exacerbated by a culture of short-term decision making, prevaricating over big decisions, slipping everything to the right and storing up costs over the long term. As Nye Bevan—that is Bevan, not Kevan—told the Labour party conference in 1949:

“The language of priorities is the religion of socialism”.

If that is so, there was a pretty atheist period when the Labour party last ran the Ministry of Defence. We inherited a financial shambles, which we have had to deal with for four years. The defence programme is affordable over 10 years after some difficult and painful decisions, and as a result of our better financial discipline, the Treasury has allowed us to roll forward recent in-year underspends to supplement our future plans. We are continuing to examine a package of additional investment, including on equipment and cyber. The details of that are currently being finalised, and they will be announced soon.

[Mr Baron]

Will the Minister give way?

[Mr Francois]

If my hon. Friend will forgive me, I must say something about reserves, because I suspect that that is what he wants. I have four points to make on reserves. First, we are aiming for a trained Army reserve of 30,000 by April 2019. Secondly, we have gripped the problems regarding the IT recruitment systems and we have reduced bureaucracy in the process. Hon. Members know that we are investing £1.8 billion over 10 years to make the programme work. Thirdly, our target of a net additional 11,000 trained reservists for the Army is the equivalent of slightly more than 16 additional reservists for each parliamentary constituency, and I have to believe that that can be achieved. Fourthly, and crucially, we have halted 18 years of decline in our reserve forces; for the first time since 1996, the total strength of our reserve force has increased. Our forecast for the trained strength of the Army reserve was 18,800 by the end of quarter 4 last year. We have exceeded that forecast and there are a total of 19,400 in the trained strength of the Army reserve, which is 600 reserve soldiers ahead of the forecast. That is a five-year programme, not a five-month initiative, and as a former Territorial Army officer I remain confident that we can do that.

[Mr Baron]

I was not going to ask about reservists. Only time will prove us right in the end, but we need that time to pass. Briefly, will the Minister return to the 2% question? One hears what he says about the comprehensive spending review in two years’ time, but that should not preclude the Government from committing now to 2% of GDP, whatever that GDP is in two years’ time.

[Mr Francois]

I understand the point that my hon. Friend makes, but I have already attempted to give a clear answer on the position.

I referred earlier to D-day, which resonates with me because my father was at D-day on a minesweeper. He taught me a valuable lesson, which was never to take living in a free country for granted. I think he was in a good position to be able to say that. Yes, we must live within our means, but equally we must not shirk on our nation’s insurance policy. My father taught me that the first duty of Government is the defence of the realm, and I will always remain conscious of that.

Question put and agreed to.

Resolved,

That this House has considered defence spending.