(8 years, 7 months ago)
Commons Chamber4. What estimate he has made of the likely change in the level of defence spending over the course of this Parliament.
As from this month, the Ministry of Defence’s budget has risen to more than £35 billion—that is an increase of £800 million on the year just ended. This is the first real-terms increase in six years, reflecting the priority set out by this Government in the 2015 spending review to increase defence spending by 0.5% above inflation every year to 2020-21. This Government have clearly committed this country to meeting the NATO guideline of spending 2% of GDP on defence each and every year of this decade.
I welcome this increased budget. If we were to adopt the position advocated by some and not spend 2%, what would the impact be on the morale of our troops, their equipment and our security?
My hon. Friend is right to identify that the threats we face are growing in scale, complexity and concurrency, and a failure to meet this commitment would have a significant adverse impact on our ability to deliver the capability we need to face those threats and would send a very wrong message to our adversaries. Our commitment to spending 2% of GDP on defence enables us to deliver one of the most capable armed forces in the world; to spend more than £178 billion on equipment and equipment support over the next decade; and to fund an increase in the number of regular personnel for both the Royal Navy and the Royal Air Force, and of reservists for the British Army.
(9 years, 9 months ago)
Commons ChamberI do not recognise the hon. Gentleman’s characterisation of the defence equipment plan or, indeed, the capability of our defence industry to support it. This country remains the second largest defence exporter in the world. If our capability was so derided, as he says, how come we sold defence equipment worth nearly £10 billion last year?
Last October, the Government announced the largest Army order in 30 years for the latest set of armoured vehicles. Will the Minister outline the potential for greater procurement from UK firms, which would benefit firms in the midlands, including Elite KL in Tamworth?
I am proud to confirm that the Scout contract was the largest vehicle contract for the British Army since the Falklands war, and more contracts have now been let through the supply chain for that vehicle. The number of UK jobs secured through the programme is expected to be some 2,400 across more than 160 suppliers. Two-thirds of the suppliers are UK-based, including several in the midlands, and from all parts of the country.