PARLIAMENTARY DEBATE
Defence Investment Plan - 6 July 2026 (Commons/Commons Chamber)

I worked closely with the Prime Minister and the Chancellor to secure more money for our armed forces—a £15 billion increase in my Department’s spending power. That means we will invest £298 billion in defence over the next four years. Of course there is more to do, and I will continue to work closely with colleagues across Government to ensure that defence remains the No. 1 priority at the next spending review.

I recently visited RNAS Yeovilton and saw the welcome improvements to single living accommodation for serving personnel at HMS Heron. However, funding to refurbish or replace 14,000 service homes across the country—such as those in nearby Ilchester—has now been pushed back to 2030-35 to help pay for the defence investment plan. Can the Secretary of State confirm whether personnel serving at bases such as RNAS Yeovilton will be affected by that delay, and what they should expect by 2030?

I am grateful to the hon. Lady for raising that important point, and I pay tribute to those who serve in her constituency. We well understand the importance of having the best possible standard of defence accommodation for those who give so much for our country. That is why the defence investment plan restated the commitment to spend £9 billion over the next 10 years on defence accommodation, and that is why nine out of 10 of those most in need of repair have already been fixed.

We have seen a 30% increase in Russian subsurface and surface activity, Russian proxies rampant across Africa, £15 billion-worth of cyber-attacks across Europe, sabotage and drone incursions across the border. Can the Secretary of State confirm that if the Russians were to test us on NATO’s eastern flank, they would look across that flank and see not a NATO brigade, but something that looks like a Ukrainian brigade?

My hon. and gallant Friend raises an important point, and I know that he speaks with operational experience on these matters. I hope that he sees and understands the importance that we attach to these matters. I know he understands the importance of working closely with our allies, both in NATO and in the joint expeditionary force—he and I have discussed that on many occasions. He will also understand that the NATO summit tomorrow in Ankara provides another important opportunity for us as an alliance to state our opposition to the threat we face from Russia. We are making sure that we have the resources we need to equip our armed forces for the kind of threat that he knows all about.

I call the shadow Minister.

Earlier this year, when I served on the Armed Forces Bill Select Committee, the then Armed Forces Minister, the hon. Member for Birmingham Selly Oak (Al Carns), assured us that funding for service housing was “ringfenced” and:

“Nothing in the DIP process will stop us getting on with the job”.

However, the defence investment plan cuts £300 million from the funding due to be spent in this Parliament, pushing that investment into the next. Can the Secretary of State tell the House exactly how many service family homes will now have their refurbishments or rebuild delayed into the 2030s because the Government have failed to honour that commitment? Can he confirm that that figure is 14,000 homes?

I have a lot of time for the hon. and gallant Member, but I will take no lessons from Opposition Members on the state of defence housing. He will have heard the commitment I made earlier about the £9 billion of investment that was reiterated in the DIP. I can also tell him that we will be refurbishing another 2,000 homes across the UK in the next 12 months alone. I understand why he raises the point in the way that he does, but I hope he will accept the importance that we attach to ensuring that those who serve have the best standard of accommodation.

I call the Liberal Democrat spokesman.

It is clear that the Government’s defence investment plan is not fully funded. It adds little more than a sticking plaster to the gaping holes left in our armed forces by years of Conservative cuts. We need to rapidly regenerate our military and make it ready to deter and, if necessary, fight and win the wars of the future. That requires innovative thinking, both on the capabilities we need and the ways to raise the money to pay for them. As the Secretary of State well knows, the Liberal Democrats have proposed defence bonds. That idea has received support from Andy Haldane, the former chief economist to the Bank of England, who is now reportedly an adviser to the right hon. Member for Makerfield (Andy Burnham). Have the Secretary of State or his colleagues spoken to Mr Haldane about a defence bonds scheme? If not, will he commit to doing so?

I do not agree with the hon. Gentleman’s analysis of the DIP, not least because it included £20 billion to rapidly increase the Army’s lethality and nearly £64 billion of investment in the UK’s nuclear enterprise. In addition, the defence investment plan will create up to 60,000 good, skilled jobs across the country. On his specific point about bonds, the United Kingdom is working with our allies to establish a mechanism to improve defence financing, joint procurement and industrial capacity. We will look closely at his suggestions for how we can do things differently, but I hope he will understand that there is a commitment from this Government to invest the resources we need over the longer term. We will of course look closely at how best we can do that.