Modernising Defence Programme

Nia Griffith Excerpts

Tuesday 18th December 2018 Commons Chamber

[Nia Griffith (Llanelli) (Lab)]

I thank the Secretary of State for his statement and for advance sight of it.

I know that Members will be relieved that the review has finally been published—all 28 pages of it, 10 of which are photos or graphics—some six months after it was originally promised, because we all recognise the growing and diverse threats this country faces. However, given the amount of time it has taken, given the endless reports of the Secretary of State’s rows with various Cabinet colleagues, and given his commitment in the summer that this would lead to

“a major programme of top-down transformative reform”—[Official Report, 19 July 2018; Vol. 645, c. 28WS.],

it is staggering that the end result is so underwhelming. The review does nothing to solve the affordability crisis facing the Ministry of Defence, a crisis that the Secretary of State has completely failed to get to grips with in his year in office.

The Secretary of State promised that the review would not be fiscally neutral. The Minister for Defence Procurement promised that it would

“put UK defence on to an enduringly affordable footing”—[Official Report, 5 November 2018; Vol. 648, c. 44WS.],

but I ask the Secretary of State how can it, when it includes no new money? Despite the £l billion that was announced in the Budget, the MOD’s own figures show that the funding gap in the defence equipment plan alone is somewhere between £7 billion and £15 billion. That leads to a very simple choice: either the Government must come forward with enough additional funds to fill that gap, which the Secretary of State has completely failed to do, or he must be honest about the difficult choices that have to be made.

We know that 84% of the MOD’s funding gap occurs in the next four years. According to the National Audit Office, that means that Ministers must make

“immediate savings decisions rather than relying on longer-term cuts or efficiencies”.

Can the Secretary of State tell us what those decisions are? Which programmes has he decided to defer, de-scope or delete? We all agree with the need to make savings wherever possible, but the MOD’s over-reliance on projected efficiencies which do not materialise has been a persistent problem. Will he accept that sorting the mess in his Department’s budget cannot simply be done through efficiencies?

Turning to the announcement of a transformation fund to develop new and innovative technologies, something one would assume his Department was doing in any case, can the Secretary of State confirm that the £160 million that has been earmarked comes from existing budgets and there will be no new money? What assurances has he received from the Chancellor that the remaining £340 million that is not currently in his budget will in fact be forthcoming?

Personnel are at the very heart of our country’s defences. Last week, the NAO published a damning report on the Army’s recruitment contract with Capita, the latest reminder that this company is failing badly and that MOD is failing abysmally to manage that contract properly. Ministers have made endless promises to take action to deal with this problem, but nothing has been done. Does the Secretary of State accept that it is now time to scrap that contract and take the service back in-house?

The news that the UK will not now be able to participate in the secure aspects of the Galileo programme is immensely concerning, as is the Government’s failure to answer straightforward questions about where the funds for the proposed UK satellite system will come from. In light of that, and with only two sitting days remaining, can the Secretary of State confirm that it is still his intention to publish a space strategy by the end of the year, or is this yet another decision that the Government will be deferring?

On the Labour Benches, we have always accepted the principle of the review. Threats have evolved since 2015 and our response must adapt as well. We recognise the importance of interoperability and burden-sharing with allies to maximise the UK’s defence capability for the future, but at a time when this country faces ever-increasing threats we do not believe that the Department’s affordability crisis can simply be ignored. That is just grossly irresponsible.

[Gavin Williamson]

In one breath the hon. Lady criticises people for fighting for defence and trying to get the very best for their Department, and then she does not even recognise the fact that the Government are investing more and more in defence. Last year, the defence budget was £36 billion. Next year, we will have a budget of £39 billion and the Government have committed to spend an extra £1.8 billion over and above on defence. Those are all incredibly positive steps. If we look at the debate we were having last year it was about capability cuts. That is what the speculation was about. We are not making those capability cuts and we are investing in defence.

The hon. Lady says we put too much emphasis on efficiencies. It is right to expect every Department to look at how it can run things more efficiently. We have achieved 70% of our efficiency target. Over the next 10 years, we hope and believe we can achieve all of our target. We remain positive that that is something we can deliver.

On Galileo, the Department for Business, Energy and Industrial Strategy will be introducing a report in the early part of next year on satellite strategy, but I do not think it makes sense to continue to hand over money to the European Union in terms of a satellite programme that we will not have access to or industrial benefit from. That money can be better spent with other allies in developing our own capabilities.