PARLIAMENTARY DEBATE
Modernising Defence Programme - 25 January 2018 (Commons/Commons Chamber)
Debate Detail
Following agreement of the high-level findings of the national security capability review by the National Security Council, I have agreed with the Prime Minister and Chancellor that we should take forward its recommendation for a programme of further work to modernise defence to deliver better military capability and value for money in a sustainable and affordable way. This is essential if defence is to make its full contribution to national security.
The 2015 national security strategy and strategic defence and security review set out a clear ambition to ensure that the armed forces can tackle the threats that we face. It also proposed important new policy initiatives, including a stronger international approach, pursuit of innovation, modernised personnel policies and defence making a bigger contribution to our national prosperity, and we are making real strides to unlock greater efficiency and productivity.
Protecting the United Kingdom and our people remains our first priority and responsibility. As the threats we face become more complex and intertwined, we will need to work ever more closely with our NATO allies. We can also expect to remain actively involved with our partners in the Gulf in tackling shared threats to our security, and the Asia-Pacific region will become more important to us in the years ahead. The Ministry of Defence is making a major contribution to our prosperity as we procure the equipment our armed forces deserve and support defence exports, in which there have been recent successes, most notably the £6 billion Typhoon contract agreed with Qatar.
Significant events last year—the callous terrorist attacks in London and Manchester, and the major storms that ravaged British dependencies in the Caribbean—are reminders of our wider responsibilities. We need to contain threats that have their origin overseas and be prepared to react swiftly and effectively when crises arise. As we identified in 2015, this will require the joint force we are building to be versatile and agile. It will need to be capable of operating in all five domains: land, sea, air, space and cyber. It will need to be international by design, routinely exercising and operating with allies and partners. It will need to be credible and capable of operating against state and non-state threats—normally not alone but with NATO allies and other partners, but we must also be able to act on our own if and when required. It must be able to contribute to our national security at home, working with the police and other national security organisations.
While the major elements of our plans for Joint Force 2025 remain the right ones, in order to secure competitive advantage over our potential adversaries we need to ensure that we can move quickly to strengthen further our capabilities in priority areas and reduce the resources we devote elsewhere.
The Government commissioned the national security capability review to ensure that we have the policy and plans to implement our national security strategy, so that our investment in national security capabilities is as joined-up, effective and efficient as possible to address current national security challenges. A report will be published later in the spring.
As my right hon. Friend the Prime Minister said in her recent Lord Mayor’s banquet speech, the threats, risks and challenges have become more complex and intertwined and have developed in areas and ways that we broadly expected, but at a much greater pace than was foreseen. The defence budget is £36 billion this year—the fifth largest defence budget in the world—and it will increase by £1 billion each year so that it will be almost £40 billion by 2021. The UK remains one of the few countries to exceed NATO’s 2% spending target, and this Government have committed to continue to increase the defence budget by at least 0.5% above inflation every year. However, we must do more to ensure that we use our resources effectively and deliver the efficiencies that the Department has committed to, so that they can be reinvested in the capabilities we require for our armed forces.
It is for these reasons that I have agreed with the Prime Minister and the Chancellor to launch the modernising defence programme so that we can strengthen and modernise the armed forces to meet the threats that the NSCR identified. Modernising defence will allow us to deliver better military capability and value for money in a sustainable and affordable way, and it will allow us to ensure that defence capabilities complement other national security capabilities in the most effective way. I am determined to realise this goal through a modernised, more productive and more effective joint force that can deter threats more effectively and ensure that we can deliver what is required of defence today and succeed in any future conflicts. Turning this approach into reality will be my key goal for the modernising defence programme.
This programme will involve four strands of work. The first three will optimise how the MOD is organised and is operating, identify further efficiencies and ways to be more productive, including through an aggressive programme of business modernisation, and improve our performance on the commercial and industrial issues. The fourth strand will look at the capabilities that defence requires to contribute to our three national security objectives today and in the future, but also, most importantly, to understand the ever-changing threats that this country faces. I am determined to use the modernising defence programme to ensure that defence can make its full contribution to our national security on a sustainable basis.
I will speak to right hon. and hon. Members about this programme of work on a very regular basis, and I will keep the House updated as decisions are made. In the meantime, I would warmly welcome any contributions that right hon. and hon. Members would like to make. My Department and I will be consulting beyond the House as this programme of work gets under way in the weeks ahead.
Protecting our national security and the safety of the British people both at home and abroad remains the Government’s first priority. Let us make no mistake—the world is becoming a more dangerous place. We cannot afford to shy away from this reality, nor can we take our security for granted. But even more than that, in a post-Brexit world Britain must continue to champion the global good. It must continue to reach out to seize global opportunities and deal with global threats. Our history teaches us that we cannot have prosperity without security. To protect that prosperity we must have armed forces primed and ready to tackle the challenges to come.
I thank the Secretary of State for his statement and for advance sight of it. However, I respectfully say, Mr Speaker, that the way in which this statement has been arranged by the Government has been shambolic from start to finish, and utterly discourteous to right hon. and hon. Members, some of whom may be elsewhere today because of explicit and repeated assurances by the Government that the statement would come on Monday. I am sure you have noted, Mr Speaker, that Members first heard news of this announcement when it was briefed to journalists on Tuesday afternoon, without so much as a written statement in this place. Then we had the complete farce of yesterday when the Government indicated that they would make a statement, then it was off, then it was on, and finally it was off again, with a full update promised on Monday. Clearly, the new facility to combat fake news is badly needed. [Hon. Members: “It was yesterday.”] I am talking about 7 o’clock yesterday. I does not fill me with much confidence about the conduct of this review that its origins have been so mired in chaos.
We do welcome the decision to separate out the modernising defence programme from the national security capability review, but the decision to hold a separate defence review must not simply be an excuse to kick the difficult decisions facing the defence budget into the long grass. This week we heard grave warnings from the Chief of the General Staff about the threats that this country faces. There has been growing concern that the Government’s savage cuts to our nation’s defences have left us ill equipped to respond to those threats.
The measure of this review will be in the detail. I hope that the Secretary of State will be able to give us some specific answers today. Turning to the most important question, will the review be fiscally neutral? We know that much of the concern about the NSCR was that it was being carried out within the same funding envelope as the spending review. But if this review identifies that additional spending is necessary for the security of our nation, will the Government step up to the plate? Surely the Secretary of State must agree that it would be pointless to have a review that finds we need additional equipment or increased personnel only for the Government to ignore that recommendation. We cannot do security on the cheap, and it is high time that the Government recognised that. Yet the statement makes reference to “further efficiencies” being carried out as part of this review, raising the spectre of yet further cuts.
Crucially, how does this review fit into the work being done by the National Security Adviser? Are any recommendations he may have made on defence as part of the NSCR to be carried over into this review, or is it a case of starting from scratch? When it comes to threat assessments, will the modernising defence programme and the NSCR have a common view of the most significant threats?
Will the planned numbers or targets for our armed forces change, and if they do, will there be changes to planned structures and ongoing restructuring? Similarly, does the Defence Secretary foresee this review having an impact on the better defence estate strategy and future basing arrangements? Might it include the cancellation or downscaling of procurement plans, and if so, how will industry be involved in the process? Finally, what is the planned timetable for this review, and when will it be published? It is vital that our serving personnel are not kept in limbo about their future, but can be assured about when they will get answers.
This review represents an important opportunity for a step change in the Government’s approach to defence policy. We all hope that the Defence Secretary will use this chance to deliver real investment in our nation’s defences and the resources that our armed forces so badly need.
I thank the hon. Lady for welcoming the review that we have brought about. She mentioned the Chief of the General Staff’s comments. I think it is very important that the people who lead our armed forces can have a voice and speak about the threats this country faces. We spent 20 years feeling that the threats this country faced may have disappeared, and we got used to not facing peer enemies. That is not the world we live in today, and it would be irresponsible not to talk about such threats. The British people must understand the challenges that our nation is facing and what the armed forces are dealing with every day.
The hon. Lady asked whether the review aims to be fiscally neutral. No, it does not. It will look at how we can get the armed forces we need to deal with the threats that we face. The Government are absolutely committed to delivering the very best armed forces, and many Government Members and Opposition Members are equally committed to that. I very much hope that they will continue to support the Ministry of Defence and the armed forces in the work we are doing to get the very best armed forces for future generations.
The hon. Lady asked when the review will be published. My aim is to publish it in the summer, and my hope is to do so before the House rises for the summer recess. I very much emphasise that we want to hear people’s views. The armed forces will always need to change and evolve. She asked a question about what I said about efficiencies. I think every organisation in the Government should be looking at how it can do things better and more efficiently, so I do not apologise for saying that the Ministry of Defence can do things better. I want it to do better and to drive efficiencies so that the money can be put into the frontline for our armed forces.
Let us not be hesitant about coming forward with ideas. If the hon. Lady has some ideas about how she thinks this could be done better, she will always find me very keen and willing to listen to them. I once again thank her for welcoming the review, and I look forward to working with her and with all Members of the House in trying to make sure that this review very much works for our armed forces.
May I urge my right hon. Friend, in the conduct of his office, to please learn from previous mistakes? For example, when we went into the Bosnia area we had a “just-in-time” equipment policy based on supermarkets. That was very modern, but it ended up with tanks up on the side of the road with no equipment because we could not get it to them “just in time”. War is an expensive and wasteful business. Will he please ensure that we do not repeat the nonsense of people saying, “You can modernise,” when actually they mean, “You cut”?
Let me ask a couple of questions about the statement. Will the right hon. Gentleman expand on this week’s announcement about the new disinformation unit. Again, we had to read about that in the newspapers and he did not mention it today. If this review is not to be fiscally neutral, will he confirm that that is a departure from what Sir Mark Sedwill told the Defence Committee in a letter in which he said that it would be fiscally neutral? If it is not fiscally neutral, can members of the armed forces expect a pay rise when the review concludes? How will the review deal with Russian activity in and over the north Atlantic? Given what the right hon. Gentleman said about wishing to engage with Members, will he agree to meet me to discuss that issue? When he comes to report on this review in the summer, will he commit to handling it a lot better than he handled things yesterday?
A number of colleagues, including my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), have pointed to the crucial matter of money. Twenty years ago, the Labour Government carried out an enormous strategic defence review, which on the whole was well received, but it was never funded. Has the Secretary of State any confidence at all that his recommendations will actually be funded by the Treasury?
There have been rumours about the Parachute Regiment merging with the Royal Marines and the end of amphibiosity—all this has been nonsense. Will the Secretary of State give us assurances that we will stop seeing such rumours on the front pages of the newspapers and be informed about what is happening? More importantly, what is happening with the review and where is the threat assessment coming from? What will the terms of reference be and when will we see them?
I believe that the Secretary of State is seized of the danger of continually augmenting our threat assessments and losing capacity, only to find that old threats are renewed. As he looks to modernise this country’s defence capability, may I urge him to look closely at Northern Ireland? Not only does my constituency have the UK’s largest dry dock, which is suitable for Queen Elizabeth class carriers, but the city is home to the latest ECIT and CSIT cyber-security centres. Northern Ireland has never been found wanting when it comes to personnel or procurement opportunities, and I urge him to look to us.
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