Budget Resolutions and Economic Situation

Matt Western Excerpts

Wednesday 28th October 2026 Commons Chamber

[Matt Western (Warwick and Leamington) (Lab)]

It is a pleasure to follow the hon. Member for Boston and Skegness (Richard Tice), though I disagree with the vast majority, if not all, of what he said. As we have seen, growth is running at about 2.1%. We have not seen that economic performance for about 10 years, with the exception of 2022, as we emerged from the pandemic. In the 2024 general election, we promised that we would fix the foundations; that cannot be done overnight. We said that we would produce the highest growth rate in the G7 and we have done that.

I am proud of the Government’s record, as, I am sure, are all my colleagues on the Labour Benches. That is not just about what we have heard today; it is about what has happened over the last few years. I want to place on record my thanks to the last Labour Prime Minister and his Chancellor, my right hon. Friend the Member for Leeds West and Pudsey (Rachel Reeves), for their stewardship, because they delivered fiscal discipline, bold economic reforms and good growth.

We face the impacts of global events at home when doing the weekly food shop or filling up at the pumps, with Trump and Netanyahu’s war in Iran set to cost each household £2,500 by the end of 2027. Listening to the Chancellor, today’s Budget looks to build on the fiscal foundations and I welcome the measures laid out. It will give families the breathing room they need by extending the VAT on electricity bills this winter and spring into July next year, taking £50 off; cutting standing charges on gas bills, saving £45 for the average household; knocking green levies off bills; and providing a council tax rebate of £100 to help 20 million households with their energy bills—that will help almost 40,000 households in my constituency of Warwick and Leamington.

Today’s Budget cannot fix the cost of living overnight. Between 2010 and 2024, real weekly average wages rose by just £16, but if we had matched the wage growth seen in Germany, our earnings would be £3,600 a year higher. The extension of the 5p tax cuts on fuel duty to July is welcome, as is holding down red diesel. I congratulate the Chancellor for helping motorists, particularly business users, with the higher mileage rate increasing from 25p to 35p. That will make a significant difference.

The average house price in my constituency 30 years ago was five times the average annual salary. Today, it is 10 times the average annual salary. That is why I welcome the Government’s announcement; it is critical to increase supply to help young people to stay in their areas and to help key workers to locate themselves near their work. That is particularly relevant not just to the businesses in my constituency but to Warwick hospital. When it comes to the delivery of affordable housing and council homes, extending the discounts on the local authority borrowing rate is important, and the introduction of the £4.7 billion Your First Home programme is welcome.

I am delighted to see the Chancellor backing UK businesses by taking more of them out of paying business rates. The raising of the small business rate relief threshold means that 52% of all retail, hospitality and leisure businesses will pay no business rates at all, and the real-terms business rates freeze for eligible businesses will benefit 535 properties in my constituency. The Chancellor also mentioned the relief for family businesses, and the relief for entrepreneurs and founders, which is particularly welcome and innovative. I commend him on that.

On the reindustrialisation programme, the additional investment announced, totalling £20 billion and supporting 100,000 jobs in sectors such as AI, defence and green energy, will strengthen our economic resilience. In Warwick and Leamington, we are very well positioned to take advantage of that, in particular through our advanced manufacturing, automative and defence businesses. Let me highlight just one company, given that we have been talking about innovation and have heard that are no £1 billion businesses in the UK. A company just down the road in Oxford—a spin-out of a PhD project at Oxford University—had zero money in 2009, but by 2019, just 10 years later, it was worth £100 million and was subsequently bought by Mercedes.

To build on the point made by my right hon. Friend the Member for Birmingham Hodge Hill and Solihull North (Liam Byrne) about pensions, ISAs and encouraging greater investment in the United Kingdom, I believe that there is a lot of money in this country as liquid assets and we have to use much more of those assets, such as those in ISAs, to invest in the United Kingdom. I would like to see more encouragement and more fiscal incentive for individuals to use their savings to invest in the United Kingdom or in the UK’s defence sector.

On devolution, it is welcome that there is transitional growth funding. I agree with the combining of powers—for Warwickshire, Coventry or the west midlands, whichever way we end up—and believe that it is important. I really do hope, though, that areas such as mine will not lose out just because of the mistakes made with local government reform back in the 1970s, when Coventry was hived off from the rest of Warwickshire.

I welcome the long-term thinking that the Prime Minister is bringing to his role and how he sees Government. Working with countries such as Vietnam, we will see the benefits of a long-term plan and the strategy for delivering permanent growth and long-term prosperity for communities.

We must have AI sovereignty, either through strategic leverage of the AI stack or through a sovereign frontier AI model, so I welcome the Chancellor’s announcement on a sovereign AI unit.

I welcome the measures in the Budget, particularly what has been done to help households through this incredibly tough time—a tough time brought on by external events, whether it be the war in Ukraine or the unnecessary war in Iran brought about by Trump and Netanyahu, which has seen energy prices spike dramatically during the past 10 months. These are significant headwinds, and there is only so much a Government can do to battle them, but I really appreciate the measures that this Government and this Chancellor have introduced to address them.

I agree with my colleagues that this Budget has been delivered by a Chancellor who is renowned for his steadfastness, durability and seriousness. He brings all his personal qualities to the role of Chancellor, and his first Budget underlines his vision and the seriousness with which he wants to steer our country through a very difficult time. I look forward to supporting the Budget.

Defence Investment Plan

Matt Western Excerpts

Tuesday 30th June 2026 Commons Chamber

[Dan Jarvis]

I pay tribute to Lord Hutton for the work he did when he was Defence Secretary. We listen very carefully to all those who take a view about the policies that we have brought forward. It is not unreasonable, however, to reiterate the commitment that we have made today: £298 billion, including £15 billion of new money, is contained in this defence investment plan, with an increase in real terms of 27% by 2029-30. That demonstrates a real commitment. Do we need to do more? Yes, I have been consistently clear that we do. We will listen to Lord Hutton and others in shaping that debate, but I am confident that the next spending review will provide the resources we need to meet the targets that we have committed ourselves to achieving.

[Matt Western (Warwick and Leamington) (Lab)]

I thank my right hon. Friend for the statement. As he said, this is a welcome shot in the arm for our defence and security sector. He talked about the defence export funding that would be available. That is extremely important because so many nations around the world really rate our kit and our expertise in these sectors. I am slightly concerned about what he said on home defence. Will he say a few more words about where he thinks we are on future funding and the importance of the Defence, Security and Resilience Bank?

[Dan Jarvis]

I am grateful to my hon. Friend for his important work in chairing the Joint Committee on the National Security Strategy. I agree with the thrust of his point about defence supporting growth. I know that he will be proud that we have a Labour Government generating good jobs and bringing forward a defence investment plan that is good for our economic security, as well as our national security. He will have heard my earlier remarks about taking a little bit of time to look at the various proposals from our allies and from others about how we might seek to fund further defence investment. I will take a bit of time to do that, but as ever, I am happy to discuss the matter further with him.

Oral Answers to Questions

Matt Western Excerpts

Monday 1st June 2026 Commons Chamber

[Luke Pollard]

As a fellow south-west MP, I know how important defence is for businesses large and small in our part of the world. That is why we have signed 1,200 major defence deals since the general election, and analysis of just 500 of them shows that they are delivering benefit for 8,000 SMEs and micro-SMEs. We will continue to increase the amount of direct spend with small businesses, just as we are speeding up procurement. We inherited a system that was broken and did not work, and we are speeding it up to ensure that we can get more contracts to those brilliant innovators in our economy as soon as we can.

[Matt Western (Warwick and Leamington) (Lab)]

Those of us interested in subsea cables will have been delighted to hear the news announced over the weekend about the AUKUS arrangement, which the Government spoke about, and the development of new technologies with unmanned drone vehicles for subsea capability. Beyond that, will the Minister look at drone capability in this country, specifically at companies such as Skycutter and our other sovereign capabilities, to ensure that we get the right investment with the investment plans into those companies and ensure that they stay here in the United Kingdom?

[Luke Pollard]

My hon. Friend is absolutely right. After many years of much talk under the last Government about AUKUS pillar II, this Government have delivered a project and a capability that, in the hands of our British, Australian and American warfighters, will make a real difference.

My hon. Friend is right to talk about autonomy and drones, for which the Government are committed to increasing funding. We have invested in more capabilities in the United Kingdom, and we are actively exporting those capabilities to our friends and allies abroad. He should expect to see more of that in the defence investment plan, which will be published soon.

North Atlantic Submarine Activity

Matt Western Excerpts

Monday 13th April 2026 Commons Chamber

[Al Carns]

I am glad that the Government took a defensive stance on Iran. We were clear that we did not have a legal mandate, there was not a plan and there was no clear end state, and if we are going to put people in harm’s way, we need those three things before we can do so.

While the defence investment plan not has not arrived yet, five classes of ship or submarine are on order or being built, including 13 frigates on order—eight Type 26s and five Type 31s—which is a collaborative effort to ensure that our maritime capability is fit for purpose as threats diversify and increase, in particular in the High North. We are learning the lessons from Ukraine and ensuring that we have the best autonomous capability, and our Atlantic Bastion platform is moving in the right direction. We have worked exceptionally hard, and the Foreign Office is pushing as well, to sanction thousands of Russian individuals, companies and, of course, vessels, to reduce the illegal flow of resource back into Russia, which is funding the illegal and brutal war waged by Putin on Ukraine.

[Matt Western (Warwick and Leamington) (Lab)]

I thank my hon. and gallant Friend for his statement. GUGI has been at work since the 1960s, as I understand it; it has been doing extensive mapping for quite some time. In our report on subsea cables, the Joint Committee on the National Security Strategy came up with a great many recommendations, with which he will be more than familiar. When it comes to the defence investment plan, may I draw his focus to our recommendation on a sovereign capability in repair ships? Will he promise to look at that or agree to meet me to discuss it?

[Al Carns]

I thank my hon. Friend for his really focused question. We have been watching the underwater research programme for years now. We understand exactly what they are up to and why they are up to it. They understand some of the vulnerabilities—I would not say weaknesses—in the west, and they are trying to identify and, indeed, threaten them at a point in time of their choosing. I recognise the report’s recommendation on a sovereign capability to fix cables. We are working with industry and partners, and of course we have a multitude of capabilities within defence that can support the types of operations that may need to take place should anything happen to our undersea cables.

Defence

Matt Western Excerpts

Tuesday 24th March 2026 Commons Chamber

[James Cartlidge]

The hon. Gentleman, who I believe is a gallant gentleman who served in the Royal Air Force, knows exactly what he is talking about. I agree with him wholeheartedly. It is having a real impact, and it is not just me saying that.

The serious consequence of this paralysis is our brilliant defence industry hanging on by its fingertips. This morning, I addressed a roundtable attended by many defence primes and small and medium-sized enterprises in Westminster. They are the experts at the coalface, and they spoke of British defence companies going abroad or even having to close because of delays to the defence investment plan, and a defence industry under strain when it should be firing on all cylinders.

When it comes to consequences, on a personal basis, what I find most disheartening of all is the impact of this paralysis on our ability to learn lessons from the war in Ukraine. I am incredibly proud of how, in government, the Conservatives stood by Ukraine even before Putin invaded.

[Matt Western (Warwick and Leamington) (Lab)]

I came into this place only in 2017. I was deeply disappointed by what happened in 2014 and our failure to stand by Ukraine on the invasion of Crimea. I think Michael Fallon was one of the few who said, “We should actually take action.” What was the hon. Gentleman’s view and what would he have done?

[James Cartlidge]

The hon. Gentleman will be aware that we have been training Ukrainian soldiers since 2014—over 60,000, I think, under Operation Interflex. I think there is a very strong consensus in the House on support for Ukraine. Obviously, there were limitations on what we could do. We have done everything possible. We were the first country in Europe to stand by Ukraine. We sent weapons before the invasion started. We did not wait for Putin to invade so that we could comply perfectly with international law. Boris Johnson and Ben Wallace had the guts to ignore the Foreign Office and send those weapons, despite that—premeditated. If Kyiv had fallen and the column of tanks heading to Kyiv had not been intercepted, we would have been in an extremely serious situation.

I am making a point about procurement. This is important. By April 2024, we were providing Ukraine with drone and counter-drone capabilities that were proving decisive on a real battlefield, against the peer military threat in Europe. They were not being produced through the old system, full of delays and overspend, but by British SMEs, producing them cheaply, swiftly and with constant feedback from the frontline. We were therefore incredibly well placed to deliver the vision of the MOD defence drone strategy—which I published in February 2024 and is meant to be current Government policy—whereby we would be a leading nation in uncrewed warfare. Most importantly, we would have achieved that by providing in parallel for our armed forces the drone technology that we were giving to Ukraine.

By now, our Army should have been training across the board in drone warfare, the Navy should have been fielding the beginnings of an autonomous drone fleet, learning the lessons from Ukraine’s extraordinary victory in the Black sea, and the RAF should have been maximising investment in loyal wingmen—drones that would fly alongside and enhance the lethality of our current Typhoons. But there was one big problem.

--- Later in debate ---

[Al Carns]

There are clear NATO defence spending targets. That is written down, and will be produced in due course.

[Matt Western]

My hon. Friend is making an excellent speech. The 1.5% is, of course, about security-related initiatives, and it is important that we get to those soon. As for the wider defence investment plan, I would just say a word of caution: we must get it absolutely right. I have been trying to work with colleagues on both sides of the House since the start of the Ajax project in 2016 to find a resolution to some of these problems. We must take great care and be very clear-eyed about the procurement strategy that we follow.

[Al Carns]

I completely agree. We have to get the defence investment plan right, and we have to ensure that it balances all the different problems that we face, whether they relate to air defence in the middle east and the lessons identified there or, indeed, the lessons identified in Ukraine.

Strategic Defence Review

Matt Western Excerpts

Monday 2nd June 2025 Commons Chamber

[John Healey]

The short answer is yes. The longer answer is that we do not fight alone and we do not plan to fight alone. We are a leading member of NATO, a 32-strong alliance that has never been bigger and has never been stronger. As we approach the NATO summit later this month, there will be a discussion about the capabilities that each nation contributes and develops in the years ahead, so that we can strengthen that collective deterrence, avoid the wars that we do not want to fight, and strengthen our collective and our UK defence.

[Matt Western (Warwick and Leamington) (Lab)]

Anyone who heard Carsten Breuer, Germany’s Chief of Defence, speak at the weekend will have found his words deeply sobering, so I congratulate my right hon. Friend on the SDR, which is modernising our defence, from Atlantic Bastion to the transformation of our defence and a tech-driven approach. I particularly welcome the cyber and electromagnetic command. He spoke of a stronger deterrence. Will he confirm that there is a need now for stronger offensive cyber-work by our forces?

[John Healey]

My hon. Friend is right. He will be aware of the national cyber force that we are developing further. He will also be aware that I have confirmed, and the SDR recommends, the establishment of a cyber and electromagnetic command, which will be in place and do exactly as he suggests: it will reinforce our capacity, our expertise and our ability to do both defensive and offensive cyber as part of the deterrence and the defence that we need for this country.

Oral Answers to Questions

Matt Western Excerpts

Monday 14th October 2024 Commons Chamber

[Cat Eccles (Stourbridge) (Lab)]

13. What recent discussions he has had with his international counterparts on support for Ukraine.

[Matt Western (Warwick and Leamington) (Lab)]

15. What recent discussions he has had with his international counterparts on support for Ukraine.

[The Secretary of State for Defence (John Healey)]

I regularly discuss how best to support Ukraine with international partners. Last week, I met my Ukrainian counterpart and the new Secretary-General of NATO in London. Last month at the Ukraine defence contact group in Ramstein, I met nearly 50 other Defence Ministers who came together to commit to continued support of Ukraine, both in the immediate fight and for the long term.

--- Later in debate ---

[John Healey]

Like my hon. Friend, I have been privileged to see some of those community efforts and local mayor- led initiatives when I have visited Ukraine. Part of the work that the Government have put in place since 2022— I am proud of the UK’s leadership on Ukraine over that period—has been to commit £38 million to the Ukraine good governance fund. That has allowed communities to draw down some of that funding and the Ukrainian Government to take steps to deal with some of the corruption that has been endemic since the Soviet period. That is an extraordinary feat, given that they are fighting a war and dealing with corruption in their system at the same time.

[Matt Western]

With winter looming, defending the home front in Ukraine is paramount. However, Russia has intensified its attacks on energy infrastructure in Ukraine, including substations, where it has deployed cluster munitions. That is particularly alarming. Given those developments, what additional support can the UK give through de-mining equipment to get rid of those munitions from the ground?

[John Healey]

My hon. Friend makes an important point. It is vital to remember that these are not military targets; they are civilian targets. These are Russian actions that breach international humanitarian law and we must never lose sight of the moral outrage about what the Russians are doing. Clearly, with the onset of winter, there is a vital imperative for Britain and other countries to step up support as we can. Since the election, we have been offering specialist advice on how to protect energy generation and transmission sites, and the Foreign Secretary, when he was in Ukraine last month, committed another £20 million to support emergency energy needs.

UK Armed Forces in Middle East

Matt Western Excerpts

Monday 29th April 2024 Commons Chamber

[Leo Docherty]

I can, of course, give my hon. Friend that assurance. It is a highly sensitive subject, and if he would care to raise the case with me individually, we will do what we can to follow up.

[Matt Western (Warwick and Leamington) (Lab)]

Two months ago, the House passed Labour’s motion calling for an immediate ceasefire. We believe that Hamas must immediately release their hostages, but Israel must also look at releasing its prisoners. There has to be an immediate and unimpeded supply of aid into Gaza, but I am really concerned about UK forces getting involved. We should rely absolutely on aid being delivered by the charities and voluntary organisations on the ground. What is the Defence Secretary doing with our allies and regional partners to secure an immediate ceasefire?

UK Armed Forces

Matt Western Excerpts

Monday 11th March 2024 Commons Chamber

[James Cartlidge]

I do not believe I made that point about nuclear. The right hon. Gentleman has said that these factors are at the expense of the frontline, but nuclear is the frontline. We have had the continuous at-sea deterrent patrolling in defence of this country every year since 1969, as I recall. We have had it for a long time, and it is fundamental to our defence. The idea that that is not frontline spending is extraordinary.

[Matt Western (Warwick and Leamington) (Lab)]

Looking at the figures for resource and capital departmental expenditure limits, it looks like there is a 7%—£2.5 billion —cut for this coming year. The Office for Budget Responsibility says that defence spending will be flat as a share of GDP. With Russia’s expenditure on its military at 40% of its total economy, why did the Secretary of State accept the reduction from the Chancellor and the Prime Minister?

[James Cartlidge]

I have explained why we do not believe that there has been a reduction; we believe that there will be a 1.8% increase in real terms. The hon. Gentleman says that spending as a percentage of GDP is flat. I point out that in 2019, it was 2.08%—just under 2.1%. We believe that if we spend everything we expect to in the next financial year, that will be 2.3%, which is a significant increase.

Afghan Relocations: Special Forces

Matt Western Excerpts

Thursday 1st February 2024 Commons Chamber

[James Heappey]

The cases are being looked at urgently. In the wider ARAP cohort that the hon. Member described, that process has been much easier. Some time ago, I directed the excellent officials who work on this, instead of working through the pile of applications, to go to the employment records we hold for interpreters and other locally employed civilians, and to focus on finding them in the pile of applications rather than going through all the applications that may be spurious or less credible. We will do so as quickly as we can, but it takes time, and even once eligibility decisions have been taken, if people are undocumented, and many of the ARAP cohort are, it is incredibly challenging to get them out of Afghanistan and into a safe country, and that limits our rate of flow enormously.

On those in other third countries, we do all that we can through the excellent staff in our embassies and high commissions to facilitate their movement out of those countries. However, there are some countries with whom we have quite challenging diplomatic relationships, particularly at the moment, and that makes it particularly difficult. That does not mean that we do not keep trying, and I am very grateful to our ambassadors and high commissioners for their efforts, but, fundamentally, we cannot tell sovereign countries what to do.

[Matt Western (Warwick and Leamington) (Lab)]

Back in September, the Minister for Veterans’ Affairs told this House that about 1,000 Afghans were accessing homelessness support, and that was after the Government had evicted 8,000 Afghans, including ARAP personnel, from UK hotels. Could the Minister confirm that there are still 1,000 Afghans accessing homelessness support?

[James Heappey]

I will need to write to the hon. Member on that.