Meg Hillier
Main Page: Meg Hillier (Labour (Co-op) - Hackney South and Shoreditch)Department Debates - View all Meg Hillier's debates with the HM Treasury
(1 month, 1 week ago)
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Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
My right hon. Friend is right to highlight those challenges. Throughout the 10-year equipment plan, there was always a £14 billion deficit that never seemed to go away. It is great that we are seeing more investment, but could the Chancellor update the House on what conversations she or her Ministers are having with Governments in Europe and with Canada about the Defence, Security and Resilience Bank and the multilateral defence mechanism for funding and procuring defence across NATO?
Rachel Reeves
I thank my hon. Friend for her question. As Members will know, this Government are working on plans with our NATO allies for a multilateral defence mechanism. We have already signed a treaty agreement with Finland and the Netherlands, and we are working closely with Scandinavian, Baltic and eastern European countries. The multilateral defence mechanism will enable us to procure jointly and stockpile equipment off the balance sheet, ensuring better value for money for taxpayers and enabling innovative forms of finance to fund our defence. We are also working closely with Canada on the multilateral defence mechanism and the Defence, Security and Resilience Bank, which lends to smaller businesses in the supply chain, so that we have one model to help us better fund defence in our country and across Europe.