Ministry of Defence

Peter Lamb Excerpts

Wednesday 4th March 2026 Commons Chamber

[Mr Dhesi]

My hon. Friend, who is a strong champion for her community, has made an excellent point. Defence is about not just security but skilled employment and regional growth. That is precisely why industry needs long-term certainty, so that those jobs can expand and endure.

Let me move on to the defence investment plan, which was promised last autumn. We are still waiting. Industry and trade union leaders say that the delay has created a planning “vacuum”. Companies cannot invest in new facilities, expand supply chains, or recruit or even retain skilled workers when they lack clarity on future procurement pipelines. This uncertainty is not merely an accounting inconvenience; it has real-world consequences. It affects jobs in communities across our country, the resilience of our industrial base and the armed forces themselves, who depend on predictable equipment delivery and long-term sustainability arrangements.

To put it simply, uncertainty costs money and capability. If we are serious about strengthening defence, we must be equally serious about strengthening defence industrial capacity, and that means four things. First, it means long-term certainty in procurement pipelines so that firms can invest confidently. Secondly, it means streamlined acquisition processes to reduce delays, bureaucracy and duplication. Thirdly, it means a sustained focus on skills, workforce development and supply chain resilience, ensuring that we can retain critical sovereign capabilities in areas such as ship and aircraft building, advanced manufacturing, cyber and emerging technologies, and can build additional production capacity so that we are not just competing with our allies to spend more money to achieve the same outputs, and so that we can export at scale and contribute to UK growth. Fourthly, we need improved access to credit so that industry can invest over the required timescales. I hope that my fellow Defence Committee members will elaborate further on that element; I am sure that, in particular, my hon. Friend the Member for Aldershot (Alex Baker) will focus on it. Industrial capacity is not just a secondary concern; it is a strategic asset, and a decisive factor in deterrence and conflict.

On the UK’s position within NATO, we have long prided ourselves on being a leading European contributor, but the international landscape is shifting rapidly. Several allies, particularly in northern and eastern Europe, are now increasing defence spending at a pace that outstrips our own. Some are moving well beyond the 2% of GDP threshold and towards 3% or more. Whereas the UK was, relative to our GDP, the third-highest spender within NATO in 2012, 11 NATO members spent proportionately more than we did in 2025. That matters for two reasons: first, it affects our credibility and leadership within the alliance; and secondly, it shapes perceptions of burden sharing at a time when transatlantic solidarity is under strain.

[Peter Lamb (Crawley) (Lab)]

Does my hon. Friend accept that part of the reason for the difference in defence spending is that those nations’ security is at much more immediate risk than that of the UK? If we are going to maintain a leading role and ensure the security of our people moving forward, we must be honest with our constituents. The reality is that, in order for our current way of life to be maintained, sacrifices will now be needed to secure the funding necessary to guarantee our defence.

[Mr Dhesi]

My hon. Friend makes an excellent point. As I have shown, the uncomfortable truth is that our adversaries are moving faster than our acquisition cycles. We need to bring the public on board, because that reality must serve as a burning platform for reform. Incremental change will not be enough.

It would be remiss of me to discuss defence spending without addressing the issue that often fuels Treasury scepticism: the perception that Defence wastes the money that it spends. There have been too many examples of programmes exceeding budgets, missing timelines and delivering reduced capability. The Army’s Ajax vehicle programme is perhaps the most prominent recent case. Years of delay, spiralling costs and repeated safety concerns have eroded confidence. The repeated failures undermine trust, waste taxpayer resources and, ultimately, weaken our armed forces. It is easy to say that we must never repeat that, but our ability to spend effectively has now become an urgent question of national security.