Armed Forces Pay Debate

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Department: Ministry of Defence
Wednesday 1st November 2017

(7 years ago)

Commons Chamber
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Lord Beamish Portrait Mr Jones
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I find that remarkable. The hon. Gentleman is letting down his constituents by not supporting what we are arguing for, which is a fair deal on pay for members of our armed forces. If I were in his shoes, I would be making sure that I did.

The last Labour Government, during which I served in the Ministry of Defence, had a proud record of accepting the recommendations of the pay review body every single year. For example, the increase was 3.7% in 2001 and 2002 and 3.2% in 2003, and that goes right up to 2010, when the increase was 2%. However, this Government have put in an artificial cap, completely ignoring the pay review body, and it was remarkable to hear the Minister say that that does not matter because people are receiving increments. I am sorry—this may be the trade union official in me coming out here—but where someone starts affects where they end up. A 2% incremental increase may mean an increase in pay, but a 2% increase on the basic level of pay is a damn sight bigger, and we need to recognise that.

Something else that cannot be forgotten is this idea that armed forces pensions are, as I think someone said, gold plated and generous. However, people do not recognise that that is taken into account by the pay review body. I also want to remind the Conservatives that if I had sacked armed forces personnel or made them compulsorily redundant weeks away from their retirement date when I was in charge, I would have been rightly condemned. That is just another example of a Conservative Government saying one thing, but doing another. Making people compulsorily redundant is astounding.

As for the independence of the pay review body, it is clear that the Government have completely ignored its recommendation, but things are even worse than that. The previous Prime Minister David Cameron sacked the head of independent pay review body in 2013 because he did not like what it said about the X factor and pay increases. The Government have not just ignored the pay review body; they have interfered in the independent process. Conservative Members may say that pay is not important, but I am yet to meet anyone in life who does not think that getting a decent reward for their efforts is important to them.

Alongside that, we have seen declining morale. One of the Conservative Government’s betrayals is that they say, “We stand up for the armed forces.” Well, the armed forces stood at 191,710 personnel in 2010, but that is now down to 149,366. The situation is worse than that, however, because there are artificial caps on numbers in the individual services, including the Navy, which is leading to real deployability problems. Ships are not sailing because they do not have the crews. As I said, the Conservatives say that they stand up for the armed forces, but if they genuinely want to do that, they should pay people accordingly and recognise the efforts and sacrifices that individuals make on our behalf. Empty words are fine, but actions in government are different. I am proud that the Labour party—not just in the last Labour Government, but throughout its history—has always stood up for our armed forces by supporting personnel and by ensuring that our country is defended.

Robert Courts Portrait Robert Courts (Witney) (Con)
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That last Labour Government, for which the hon. Gentleman presumably has some responsibility, left a £38 billion black hole in the defence budget. By contrast, this Government are increasing defence spending. Does he accept that he has some responsibility for that and that the Conservatives stand up for the armed forces?

Lord Beamish Portrait Mr Jones
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I thought the Cameron Kool-Aid had been dispensed with. That figure was plucked out of thin air. I recommend that the hon. Gentleman look at the 2010 National Audit Office report that says that there would be a £6 billion so-called black hole over the next 10 years. The Conservatives dishonestly tried to give the impression that there was a £38 billion black hole to be met in 2010. Both the right hon. Member for North Somerset (Dr Fox) and the right hon. Member for Runnymede and Weybridge (Mr Hammond), his successor as Defence Secretary and now Chancellor, miraculously got rid of that black hole within 18 months and said that it had been plugged—do not ask me how they did it. If they could get rid of a £38 billion black hole in less than 18 months, they are in the wrong job. That was complete nonsense. The hon. Member for Witney (Robert Courts) should stop repeating things that are just not true. I give the Conservatives credit for their great job of changing the narrative at the time, but the actual facts are different.

Robert Courts Portrait Robert Courts
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Will the hon. Gentleman give way?

Lord Beamish Portrait Mr Jones
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No, because I am about to finish. I suggest that the hon. Gentleman looks at the black hole that exists in the current Government’s procurement plan. I am not suggesting that it is an in-year black hole; this is about the 10-year equipment plan. The hon. Gentleman may want to look at that, the NAO report and the excellent report out today on how the Government are cannibalising equipment. Please look at the details.

I will finish with a non-partisan point. Everyone across the House recognises the dedication and service of the members of our armed forces, and they deserve that recognition. In just over a week’s time, we will remember those who made the ultimate sacrifice, and there is a consensus across the House of support for our armed forces, but if we are to support and recognise the sacrifices they make, they need to be paid and resourced at an acceptable level.

--- Later in debate ---
Andrew Bowie Portrait Andrew Bowie
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I would be happy to join the hon. Lady in demanding that veterans are given the due care and attention they deserve, having given so much for this country.

To enable people to do their job effectively in our name, it is essential that our armed forces are properly funded and resourced and that they have the tools to do the job. I am sure that the old adage that the three enemies of the Royal Navy are, in reverse order, the enemy of the day, the French and Whitehall is one that still finds sympathy in many mess decks and wardrooms around the fleet, but the fact is that the Government remain steadfast in their support for the armed services.

That support has been shown not just in words but in action. In that regard, the Government cannot be accused of being found wanting. The defence budget will increase by £1 billion a year until at least 2021, ensuring that we remain the country with the second highest defence budget in NATO, the largest defence budget in the EU and the fifth largest defence budget in the world. Seven ships and submarines are in build right now in UK yards. Some £178 billion is being spent on equipment for all three armed services, including the new aircraft carriers, 50 upgraded Apache helicopters and nine Boeing P-8 maritime patrol aircraft. The Armed Forces (Flexible Working) Bill will, of course, bring our armed forces into line with modern working practices and will make them more adaptable to the demands of 21st-century life.

Those are the actions of a Government committed to our national security and to the serving members of our armed forces. But, of course, it is right that we debate the pay of personnel currently serving on land, at sea and in the air. When this Government came into office, tough decisions had to be taken to attempt to strike a balance between

“the need to recruit, retain and motivate suitably able and qualified people”

and maintaining comparable pay to the civilian sector. That was why the Government took the tough decision to budget for a 1% pay rise across the public sector, including the armed forces. This year, the Armed Forces Pay Review Body recommended a 1% pay increase.

However, it is right that in this place we hear the concerns of those who think that the 1% pay cap could be a factor in recruitment and retention, and I am persuaded that greater flexibility on pay rates could be required in order to ensure that our armed forces have the personnel to continue operating at such a high level. Like my hon. Friend the Member for Plymouth, Moor View (Johnny Mercer), I do not recognise such flexibility as a priority on the long list of things that my friends who still serve complain about daily.

Robert Courts Portrait Robert Courts
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Does my hon. Friend agree that the approach to this debate carries the danger that it becomes very simplistic? Evidence tends to suggest that other issues, such as accommodation—the RAF housing at Carterton in my constituency very much needs attention—and the effect on family life, are more important than pay alone.

Andrew Bowie Portrait Andrew Bowie
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I could not agree any more with my hon. Friend. Accommodation is at the top of the very long list that friends of mine remind me of on a daily basis.

I welcome the Treasury’s announcement in September of greater flexibility on pay across the public sector next year, and I look forward to seeing the next recommendations of the Armed Forces Pay Review Body.

The Government value our armed forces personnel. As I have said, we owe our armed forces personnel and all who served before them an immense debt. The Government’s actions in investing record amounts in equipment, in raising our defence budget in real terms, in introducing the Armed Forces (Flexible Working) Bill and in signalling their desire for more flexibility on public sector pay across the board are the actions of a Government committed to the defence of this country.