Defence

Mark Francois Excerpts

Tuesday 7th May 2024 Commons Chamber

[Grant Shapps]

This is a serious issue, and I am surprised by that sort of attitude. I want to ask, because it is a serious point, whether the Opposition are now ready to commit to that extra £500 billion if they were elected, because I have yet to hear that confirmed, and that is an important issue for our Ukrainian friends. I accept that the Ukrainians have the Opposition’s support, but they also need the pledge of money and the certainty that this House will provide it, come what may.

[Mr Mark Francois (Rayleigh and Wickford) (Con)]

If I heard the Secretary of State correctly, a few minutes ago he said that we have now gifted all our AS-90 howitzers to Ukraine. We are buying 14 new Archers. We are then buying a completely different system based on Boxer, which will take some years to come into service, and our multiple-launch rocket systems are being refurbished. What is he doing to ensure that the British Army is not left without heavy artillery for the next few years, because what he is talking about is a dangerous risk?

[Grant Shapps]

As my right hon. Friend will realise, it is not a move I have taken easily. There is a balance to be struck between where the weapons can do the most good and the extraordinarily difficult fight that our Ukrainian friends are in right now. I thought, believe and think that that warrants the provision of further AS-90s. The new equipment, as I do not need to tell him, is vastly superior and will be in our hands quickly, not least because of the excellent work of the Minister for Defence Procurement, who has sped up the acquisition of new equipment through his brilliant integrated plan.

I want to be entirely clear with the House: there are choices to make when we do this gifting, and we have to make the choices as to where we think the equipment will be most useful and how quickly we can replenish it. One of the very good things about this significant boost in defence spending, as my right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) will appreciate, is that it will enable us to replenish not only equipment but, crucially, munitions, which have been a real concern of his and many others.

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[Grant Shapps]

The right hon. Gentleman wants to relitigate the past, but I think we all agree that we cannot do anything about it. I want to talk about the future, and the future is that those on his own side have yet to commit to the 2.5% that is required to ensure that our nuclear deterrent can deliver on time. In March the Prime Minister and I published the defence nuclear enterprise Command Paper, setting out our long-held and unshakeable commitment to our own independent nuclear deterrent.

[Mr Francois]

I appreciate my right hon. Friend’s desire to look forward rather than back but, just for the record, does he remember, as I do, that at one point the Liberal Democrat policy on Trident was to maintain the submarines but to send them to sea without any missiles?

[Grant Shapps]

I will be as diplomatic as possible: the Liberal Democrats asked us to investigate a range of options, and I am very pleased that the one we ended up with was the four-submarine continuous at-sea deterrent.

We are investing £41 billion in our next generation of the Dreadnought fleet, and investing in our replacement UK sovereign nuclear warhead as well.

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[Sir Bernard Jenkin (Harwich and North Essex) (Con)]

rose—

[Mr Francois]

rose—

[John Healey]

I will give way to two of his colleagues who have not yet intervened on me, and then I am sure I will come back to the hon. Member for Isle of Wight (Bob Seely).

[Mr Francois]

Governments should be judged not by what they say, but by what they do. The right hon. Gentleman mentioned the Wedgetail. If Labour were in government, would it specifically commit to going back to the original five Wedgetail AEW aircraft, rather than the three that are now on order? Is that what Labour would not say, but do?

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[Mr Mark Francois (Rayleigh and Wickford) (Con)]

Thank you, Madam Deputy Speaker, for calling me to participate in this important and timely debate on defence. It comes at an exciting time for defence, following the Prime Minister’s welcome announcement that we will now increase the UK’s defence spending from a little over 2% of GDP at present—more if we include Ukraine —to 2.5% by the end of the decade. Moreover, that welcome increase is linear in nature, rather than the traditionally back-loaded version, so it provides a solid path against which both our armed forces and our defence industry can appropriately plan.

As ever with these announcements, my colleagues on the House of Commons Defence Committee will want to scrutinise in detail the Secretary of State’s claim that that represents an additional £75 billion for defence over the period. A lot seems to depend on where we draw the baseline in making the calculation. Nevertheless, the declared increase to 2.5% indisputably represents billions of pounds of extra investment over the six years in question, which helps to send a powerful signal both to our allies and to any potential aggressors that the United Kingdom is prepared to defend itself, its values and its interests, both across the globe and at home.

Allied to that, we also had the recent announcement by our very proactive Minister for Defence Procurement of a wholescale reform of how the UK plans to procure its military equipment in future. The new system, known as the integrated procurement model, was announced in February. If I were asked to characterise it in one sentence, I would say that it represents moving from a bureaucratic peacetime model of procuring equipment to a much faster wartime model. Indeed, in Poland the Prime Minister spoke powerfully about putting the UK defence industry on to a war footing. That is very much in keeping with the Secretary of State’s speech at Lancaster House in January, in which he said that we are now moving from a post-war to a pre-war world—about which I fear he may yet be proven right.

Taken together, this suggests that after years of concentrating on wars of choice—in Iraq or Afghanistan —we are now again focusing on the possibility of having to fight a war of necessity, and perhaps even, ultimately, a war of national survival against an adversary on the scale of Russia and/or China.

For someone who has always believed that the first duty of Government is the defence of the realm, I warmly welcome what one might call this new type of clear-eyed realism, which now seems to be infusing our defence planning in a way that, at least with regard to wars of necessity, has arguably been absent for many decades. For instance, we are now recreating across Government a national defence plan, akin conceptually to what was considered everyday normal business during the cold war.

I hope that I am not betraying a confidence when I tell the House that the Minister for Defence Procurement and I, and others such as my hon. Friend the Member for Harwich and North Essex (Sir Bernard Jenkin), who is in his place beside me, have discussed several times the need not just to change policy in terms of procurement, but crucially to change culture if the reforms are to have real meaning.

I note that the dynamic head of Defence Equipment and Support, Andy Start, when speaking at the Royal United Services Institute recently, explained that the reforms began in March and that the operating model will reach what he calls a “minimal viable product” by the autumn, with the whole programme in full flow by next year. As someone who has previously expressed a great deal of frustration about the bureaucracy and tardiness of our procurement system, I can only wish the Minister for Defence Procurement and the head of DE&S Godspeed in implementing these reforms as fast as possible, particularly as the international outlook continues to worsen. We urgently need a sense of urgency, as it were, and it appears that, finally, we are starting to develop one.

All that said, I would like to highlight one area in which I believe we still remain both operationally and strategically vulnerable: the realm of air defence. Given the concentration, over more than 20 years, on the wars in Iraq and Afghanistan, we effectively disinvested in the air defence of the United Kingdom relative to other priorities. I am pleased to note that in the last few years we have reinvested in some of our radar stations in Scotland and along the east coast, which I warmly welcome.

Nevertheless, the experience from Ukraine strongly suggests that if it were ever to come to a shooting war with Russia, which has made great use of mass cruise missile strikes, most of those fixed radar sites would likely be lost to cruise missile attack in the first 24 to 48 hours of hostilities, in addition to threats from ballistic missiles. Against that eventuality, we retain a small number of mobile radars—the number is classified, but it is small. It is true that we might also be able to rely to some degree on NATO assets or other specialist assets from elsewhere, but certainly in terms of fixed NATO radar stations they might also be subject to the same cruise missile attacks, and the precious NATO airborne early warning and control system—AWACS—aircraft could be tasked elsewhere in war.

In terms of fighter aircraft for the defence of the UK, the Royal Air Force currently possesses 137 Typhoon aircraft in three tranches, the oldest of which—in tranche 1—are, on present policy, due to be retired in the spring of next year and either cannibalised for parts or sold off to foreign buyers, likely for a pittance compared to their initial acquisition cost. Considering that the Russian air force still possesses thousands of combat aircraft, that would be an act of absolute folly, and one that I personally have likened to selling off our Spitfires prior to the battle of Britain. As I was told by BAE Systems executives on a visit to Warton a few years ago, because of the extremely complex supply chain that goes into the manufacture of Typhoons, it would take at least four years to build one from scratch, or three years if, as they put it, we hurried it all up in an emergency. If, therefore, the UK were to fight what some strategists describe as a “come as you are” war, in which people have to fight with equipment that is immediately available or can be reconstituted at short notice, there would be no prospect of building additional Typhoons in time to fight.

Moreover, both Russia and China have had a long-standing policy over many decades of putting older equipment into a war reserve that can be drawn on in times of conflict to replenish stocks. That is exactly what the Russians did in the Ukrainian conflict, when they pulled mothballed tanks out of depots from as far away as Siberia, to make up for the very large number of losses of more modern fighting vehicles at the hands of very spirited Ukrainian defenders who, one might add, were armed in many cases with British manufactured NLAWs.

Conversely, the UK Ministry of Defence has virtually no concept of a war reserve, although events suggest that we should rapidly be developing one. As a comparator, the US keeps thousands of retired combat aircraft, some very recently retired, in a giant desert boneyard, as it is known, in the Mojave desert, in hot and high conditions where aircraft do not rust. The Americans regularly rehearse taking aircraft out of the stockpile and refurbishing them to return them to the frontline. It therefore seems to me that it would be madness to sell off over 20% of our fighter force. Surely it would make much greater sense to put those aircraft into storage, either in the UK or in the Mojave desert, to begin to constitute a warfighting reserve of our own.

Not only would that come at very little expense, but it would constitute a reserve air wing of up to three squadrons in time of war, not least as the Tranche 1 Typhoon, armed with advanced medium-range air-to-air missiles and advanced short-range air-to-air missiles, is still more than a match for Russian long-range bombers, which might attempt to assault the UK via the back door over the north Atlantic, carrying multiple long-range cruise missiles.

[John Spellar]

Is it also the case that these aircraft have considerable aircraft life left in them? It is not as though they are approaching redundancy.

[Mr Francois]

The right hon. Gentleman, a former Armed Forces Minister like me, is absolutely right. Many of them still have half their so-called airframe life remaining. As I have said, they are more than capable of intercepting and shooting down the threat aircraft that they would have to match. That is all the more reason to keep them against a rainy day, rather than flogging them off or breaking them up for parts. Crucially, creating such a war reserve would demonstrate a sign of intent to any potential aggressor that after many years of doing the opposite, the UK is now preparing to fight a sustained conflict with a peer enemy, should that become necessary. Hopefully, in so doing, we will make that eventuality far less likely.

Linked to the vulnerability of our radar stations and the shortage of fighter aircraft are the extremely worrisome delays in airborne early warning. The Royal Navy’s early warning aircraft, Crowsnest, is many years late. It has only recently entered service for the air defence of the fleet. For the Royal Air Force, the Boeing E-3 Sentry AWACS aircraft were withdrawn shortly after the integrated review was published in 2021, leaving us without a mainstream airborne early warning aircraft. The E-3 was meant to be replaced shortly thereafter by the Boeing E-7 Wedgetail, but the programme has been subject to multiple chronic delays and is still not in service.

The RAF is clearly embarrassed by this and is attempting to deploy chaff between in-service dates, when the aircraft could take off the runway, and an initial operating capability, when the aircraft might actually be ready to fight. The latest information I have is that the ISD could now be in autumn 2025, whereas the IOC could be in the first or even the second quarter of 2026, which is still two years away. That leaves a critical gap in our air defence capability for which the MOD, and Boeing in particular, must be held robustly to account. Moreover, the initial buy of five Wedgetail aircraft was inexplicably cut to three several years ago by ministerial fiat, even though we were contractually obliged to buy all five radars, which themselves were very expensive.

In short, the Boeing E-7 Wedgetail is rapidly becoming the RAF’s equivalent of the Army’s Ajax programme—a procurement disaster that has gone on year after year at vast expense to the taxpayer, without actually entering operational service, as Ajax still has not. The Defence Committee, alarmed by that, has invited the head of Boeing Defence, Space and Security, Mr Ted Colbert, to appear before the Committee at Westminster to provide an explanation, although we are still attempting to finalise a precise date for his personal appearance.

Boeing is an organisation in crisis after the sad deaths of more than 300 people caused by the two crashes of its 737 MAX aircraft. We have seen further serious safety incidents, most recently in January when a door flew off an Alaska Boeing 737 MAX 9 in mid-flight. That incident was followed by a number of so-called whistleblowers, involved either at Boeing or in its supply chain, coming forward with very serious allegations about failures in the way the company builds its aircraft. No doubt partly as a result, Mr Dave Calhoun announced that he will step down as chief executive at the end of the year. In the first quarter of this year, Boeing reported a net loss of more than $350 million, and it is still experiencing serious production problems across a range of aircraft, both civilian and military, of which the UK Wedgetail is but one example. The US Air Force also has numerous issues with Boeing, not least in its much-troubled KC-46 air tanker programme.

For many years, Boeing as a company has done extremely well in winning major multibillion dollar procurement orders from the MOD, in return for which it has placed very limited amounts of work on those programmes with the defence industry in the UK. To give specific examples, according to the MOD’s recent figures, on the E-7 Wedgetail, the estimated UK content is around 10%; for the AH-64 Apache, it is only 7%; for the P-8 Poseidon anti-submarine aircraft, it is barely 4%; and for the original CH-47 Chinook helicopters, it was just 2%. According to the answer to a written parliamentary question I tabled, the UK content for the new order of CH-47 extended-range Chinooks for our special forces will generate a UK workshare of about 8%. Taken together with the purchase of the Boeing RC-135 Rivet Joint electronic reconnaissance aircraft, for which no workshare figure is publicly available, that represents some $10 billion of business for Boeing from the UK MOD for which the UK workshare has been 10% at best and 2% at worst. Boeing has done incredibly well out of the UK MOD, while UK industry has done incredibly badly out of Boeing.

[Mr Kevan Jones]

Does the right hon. Gentleman agree that that is also bad news for the defence budget? Those contracts are in dollars, and the dollar exchange rate puts huge pressure on the defence budget.

[Mr Francois]

Another former Armed Forces Minister is right, and he will know that the effect of the dollar exchange rate on buying so many big off-the-shelf items from the US has cropped up time and again at both the Defence Committee and the Public Accounts Committee.

The problem does not apply just to air platforms. Boeing had a major logistics contract with the MOD called the future logistics information system, or FLIS, which was due to run until late 2020. However, as was evidenced by the Public Accounts Committee, in late 2020 the MOD signed a five-year contract extension called “Bridging the gap”, worth £515 million to Boeing, which was not even competed. That raises questions about the degree to which the MOD seems to be mesmerised by Boeing as a company, to the detriment of value for money for the UK and for our industrial workshare. Indeed, the PAC subsequently reported:

“We are…concerned to hear that the MoD awarded the contract for this £515 million programme to a large defence prime contractor without a competitive tendering process.”

That is all the more surprising given that in the 1990s, the standard policy of the MOD was to ask for a 100% offset in major off-the-shelf procurements of military equipment from abroad, especially from the US. For instance, in the late 1990s, for the purchase of the C-130J Super Hercules, Lockheed Martin was required to place work to the equivalent of 100% of the multibillion-dollar contract value with UK industry. The work could take one of two forms: direct offset, which is work on the aircraft platform itself, such as propellers or undercarriages or logistics support, or indirect offset, which is other high-quality work to be placed with the UK defence industry over the life of the programme, but not necessarily directly related to the platform itself.

Under the Blair Government, for whatever reason, the policy was quietly dropped. That has allowed a situation to develop whereby the MOD has bought a number of big-ticket items from the US without receiving any legally binding guarantees of compensating workshare for the UK industry. I therefore suggest to the next Government, of whatever political colour, that if they are reviewing defence, they might want to look at reintroducing the concept of 100% offset for any further major offshore procurements.

In some cases, it is operationally the right thing to buy something off the shelf from the US. I would argue that Wedgetail—at least when it was five aircraft, anyway—was the right decision, but I do not think it acceptable that we hand out such handsome contracts to foreign suppliers without UK industry being given its fair share.

In conclusion, a cynic might say that Boeing is a company increasingly in crisis, which is falling apart even more rapidly than the aircraft it purports to build. That is serious for us in the UK, as like it or not, Boeing is one of our major defence suppliers and is responsible for supporting key equipment in service. We do not want that company to fail. Therefore, we can only hope that the incoming management will take a firm grip of the situation and turn it around—the sooner, the better.

Lastly, it is very good news that we are reversing the downward trend in defence spending and are now investing more, rather than less, in the defence of the realm. That is very much to be welcomed, but it is a question not just of how much we spend, but of how well it is spent. I very much hope that with the new integrated procurement model and perhaps a couple of humble suggestions that I have been able to offer this evening, we can put more of that money to good use to ensure that we, our people and our allies remain safe in an increasingly dangerous world. Si vis pacem, para bellum.

[Several hon. Members rose—]

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[Maria Eagle (Garston and Halewood) (Lab)]

May I begin by welcoming the debate? As the hon. Members for Harwich and North Essex (Sir Bernard Jenkin) and for North Wiltshire (James Gray) said, we used to have more of these debates, but it is very good we have had one in Government time. While the right hon. Member for New Forest East (Sir Julian Lewis) said we are down to the usual suspects, it still has been a high-quality debate. There were excellent speeches from the Labour Benches by my hon. Friend the Member for Halton (Derek Twigg) and by my right hon. Friends the Members for Warley (John Spellar) and for North Durham (Mr Jones); from the Government Benches by the right hon. Members for Horsham (Sir Jeremy Quin), for Rayleigh and Wickford (Mr Francois) and for New Forest East, and the hon. Members for Harwich and North Essex, for North Wiltshire, for Filton and Bradley Stoke (Jack Lopresti), for Bracknell (James Sunderland) and for Isle of Wight (Bob Seely); and from other Opposition parties by the hon. Members for Strangford (Jim Shannon) and for Tiverton and Honiton (Richard Foord). It has been an excellent debate.

The first duty of any Government is to keep the nation safe and protect our citizens. From deployments abroad and the response to the invasion of Ukraine to deployments at home during the covid-19 pandemic, our armed forces are essential to our national defence, our national resilience and meeting our NATO obligations. Labour is deeply proud of our armed forces personnel, veterans and their families, and of the contribution that they make to our country. Theirs is the ultimate public service, and their professionalism and bravery are rightly respected across the world. We thank them.

Labour is committed to strengthening our national defences and supporting our armed forces. Strong national defence is a secure foundation upon which Labour’s mission-driven Government will be built if we are fortunate enough to win the general election when it comes.

Labour’s commitment to NATO is unshakeable. We are the party of NATO and Labour’s values of democracy, freedom and peace are embedded in its founding treaty. Article 5 is the cornerstone of Labour’s commitment to Britain’s security. Labour’s support for nuclear deterrence is total. We will upgrade the UK’s deterrent and build the new submarines needed at Barrow. We believe that defence procurement can strengthen UK sovereignty, security and economic growth.

There has been much talk about the commitment to 2.5% of GDP, so I wish to make it clear that Labour is totally committed to 2.5%. In fact, the last time defence spending was at 2.5% was under a Labour Government in 2010. The current Conservative Government have cut defence spending. It has never been 2.5% in any of the past 14 years of Tory Government and we have seen the Army cut to its smallest size since Napoleon. My right hon. Friends the Members for Warley and for North Durham and my hon. Friend the Member for Halton made those points very well in their contributions.

Labour will always do what is needed to defend Britain and we will always spend what is necessary to deal with the threats that we face. That is why we are committed to getting back to 2.5% as soon as we can in a responsible way. We will set out a credible plan to do so if we win the general election. It is why we will hold a strategic defence and security review if we do get into government to look properly at the threats that we face and at what we are already spending. It is simply not credible to claim, as the Government do, that it can be done by firing 72,000 civil servants, as the Secretary of State set out. The last time that this Government promised to make their defence plans add up by firing MOD civil servants in 2015, the number of civil servants in the MOD increased, so it is hardly credible now to claim that that will do the job.

In his opening remarks, my right hon. Friend the shadow Defence Secretary said that people will judge the Government on what they do, not on what they say, and that is absolutely right. My right hon. Friend the Member for North Durham said that the Government’s promises were all smoke and mirrors and soundbites for the next general election, and it is hard to see them as anything else when they have been left so late in this Parliament to be announced.

The Institute for Government has said that the Government’s plan does not add up and is not credible. It says that cutting 70,000 civil service jobs will get nowhere near close to delivering the savings needed and that, even when using our research and development budgets as well, it will leave questions about how the rest will be paid for. The House welcomed the right hon. Member for Rayleigh and Wickford saying that the Defence Committee—the Chair of which is also in his place—will be scrutinising the £75 billion figure. I look forward to hearing what it has to say when it has done so.

The truth is that the Conservatives have failed on defence over the past 14 years. They have cut spending and they are still doing so. They have hollowed out our armed forces. Since 2010, the Conservatives have reduced our armed forces by more than 43,000 personnel, one in five ships has been removed from the Royal Navy, and more than 200 aircraft have been taken out of service in the past five years alone. They have cut the British Army to its smallest size since Napoleon, while the threats are increasing and NATO is boosting its high-readiness forces from 40,000 to 300,000. Ministers now plan to cut the Army further. Those are the facts.

Recruitment targets have been missed every year, so the Government have not even been able to recruit the numbers they want, and retention rates are dropping. My hon. Friend the Member for Halton referred in his remarks to the “outflow” and the state of reserve forces in respect of some research that he has been doing into the numbers. Therefore, the past 14 years have corroded the nation’s contract with those who serve, and we must do better. The Government have left personnel living in damp and mouldy housing and, perhaps not surprisingly, morale has fallen, as has retention. Is it any wonder, when we leave people living in the conditions that we have seen in some of our forces accommodation? Nearly half of all serving personnel live in the lowest grade single-living accommodation and more than 4,000 personnel live in accommodation so poor that the MOD is forced to reduce or scrap collecting rent altogether. Contractors hired by Ministers missed 21,000 maintenance appointments between April 2022 and February 2024.

The report of the independent Kerslake commission on armed forces housing entitled “Homes unfit for heroes” has called the state of forces housing

“a tax on the goodwill of service personnel and their families.”

During the cost of living crisis, the numbers of personnel and veterans on universal credit are rising, and some troops are even using food banks to get by.

In government, Labour will renew the country’s commitment to those who serve, set new standards for service accommodation and legislate for an armed forces commissioner to act as a strong independent champion for our forces and their families to improve service life. We will fully incorporate the armed forces covenant into law, fulfilling the moral contract that our society makes with those who serve. I noticed that the hon. Member for West Dunbartonshire (Martin Docherty-Hughes), who speaks for the SNP, said that he wanted a representative body but was willing to support some of Labour’s proposed policies.

On procurement, the Conservatives have wasted over £15 billion of taxpayers’ money through mismanagement of defence procurement programmes, with over £5 billion wasted since 2019 alone. Forty-six of 52 major projects are not on time or not on budget. Ajax was supposed to be in service in 2017, and £4 billion has been spent so far, but there are no deployed vehicles and it will not be in service until the next decade. It is no wonder the Secretary of State is not listening and is too busy chatting—he does not want to hear about the failures of defence procurement on his watch, or the Government’s cost-saving cuts to E-7 Wedgetail, which are cutting the number of planes from five to three, with taxpayers footing 90% of the original cost to get only 60% of the planned capability.

[Mr Francois]

I am very critical of Wedgetail, but, just as a fact, on Ajax, the initial operating capability for the first vehicles is at the back end of 2025. That is next year, not in the next decade.

[Maria Eagle]

I accept that fact. If I said the next decade, that was not what I meant to say.

The Public Accounts Committee has described the defence procurement system as

“broken and repeatedly wasting…taxpayers’ money.”

My right hon. Friend the Member for Warley was right that we need an industrial base and that short-term cost cutting will not do. He said that we need to speed up procurement, especially of administration, when it comes to making these decisions.

The right hon. Member for Rayleigh and Wickford said that we need a change of culture as well as reform in procurement, as did the hon. Member for Harwich and North Essex, who set out his ideas about how best to change culture in organisations that can be quite resistant to change. I accept that that will be a difficult job, but I think there is acceptance across the House that it needs to be done.

At the moment, it is fair to say that the Government have been wasting taxpayers’ money hand over fist, and that is not just waste in procurement. Parliamentary answers show that the Department has lost £927 million to fraud since 2010, with £619 million of that since 2019—that would be enough to pay for 170 Challenger 3 tanks—yet the average length of time for Fraud Defence to conduct an investigation has increased from 519 days in 2019 to 742 days in 2023. Why? The Government seem to have stopped focusing on good administration.

A Labour Government will do better. Under a future Labour Government, we will drive deep defence procurement reform inside the MOD to reduce waste and ensure that our armed forces have the kit they need to defend Britain.

Labour is committed to strengthening our national defence and supporting our armed forces and their families. We will always do what is necessary to defend the country, and we will always spend what is necessary to deal with the threats that we face. Britain will be better defended under Labour.