PARLIAMENTARY DEBATE
Defence Spending - 24 April 2024 (Commons/Commons Chamber)
Debate Detail
In my speech at Lancaster House in January, I warned that we were entering a much more dangerous period in the world and I made the case for a national conversation about defence spending. Since then, Putin has stepped up his attacks on Ukraine, China is increasingly assertive, and tensions have escalated in the middle east culminating in Iran’s unprecedented attack on Israel 10 days ago conducted in parallel with the proxies Iran has nourished around Israel’s border in the middle east, including of course the Houthis who continue to hold global trade hostage in the Red sea.
Since January, the world has become even more dangerous, not less, and we continue to ask more of our courageous and professional armed forces. Our sailors have served under constant risk of attack in the Red sea, helping to protect international shipping and our own cost of living. We have bolstered our Royal Air Force presence in the middle east, enabling Typhoon crews to intercept Iranian drones and missiles recently fired towards Israel. And around 20,000 of our personnel from all three of our services, with a huge inventory of naval, air, and land assets, have been active around Europe as part of the largest NATO training exercise since the cold war. In short, we increasingly need our armed forces, and we increasingly are asking more of them.
So yesterday the Prime Minister committed to hit spending 2.5% of GDP for defence by 2030. It means we will invest an additional £75 billion into defence over the next six years, and that will be funded in full without any increases in either borrowing or debt. This represents the biggest strengthening of our national defence in a generation and, as the NATO Secretary-General said yesterday, it will ensure the UK remains by far the largest European defence spender in NATO, and it means we are the second biggest NATO spender overall.
It will provide a very significant boost for UK defence science, innovation and manufacturing. It will make our defence industries more resilient and bigger. And it will mean we are able to restock some of the global supplies required in order to continue to ensure that we are both able to provide our own armed forces and those in Ukraine and be a competitive export sector. We also recognise the important role defence plays in our national resilience by developing a new plan that for the first time brings together the civil and military planning for how we would respond to the most severe risks that our country faces.
Our additional £75 billion on defence is also enabling us to ramp up that support for Ukraine. Members on both sides of the House will share the Government’s concern about the warnings President Zelensky has been issuing, and his most senior generals have confirmed that their the ability to match Russian force is increasingly difficult. So, as NATO partners, we are looking at each other to see that leadership.
The UK Government have stepped forward: we are providing the alliance with the decisive leadership demanded in this knife-edge moment of this existential war. This week we have committed an extra £500 million of military aid to Ukraine for this year, bringing our total package to £3 billion. In fact, our total since Putin’s full-scale invasion is now more than £12.5 billion, £7.5 billion of which is in military aid.
In addition, we have provided NATO partners with leadership by delving even deeper into our own military inventory, to give Ukraine our largest package of equipment and support to date. The support announced this week includes: millions of rounds of ammunition; 1,600 key munitions, including air defence and precision long-range missiles; over 400 armoured, protected and all-terrain vehicles; support with logistics to support and bolster the frontlines; support to get the F-16 pilots who have trained in the UK into the air as soon as possible; and a further 60 boats to help Ukraine strengthen its remarkable grip over the Black sea, including offshore raiding craft and dive boats.
Our £75 billion defence investment will help Ukraine get back on to the front foot. Coupled with the reforms that we have introduced to make procurement faster and more effective, it will put our defence industrial base on a war footing. It will fire up the UK’s defence industry with an additional £10 billion over the next decade for munitions production. That will bring our total spend on munitions to about £25 billion over the same period.
We are delivering for those who serve to guarantee our freedoms as well, with over £4 billion to be invested in upgrading accommodation to build new living quarters for our personnel over the next decade. We are also working seamlessly with key allies to strengthen our collective deterrence and develop new, innovative capabilities. Just last month, I was in Australia with our Australian and US partners to advance our AUKUS programme, which will develop and deliver a range of cutting-edge kit in addition to the next generation of nuclear-powered submarines. At the end of last year, I was in Japan to advance our global combat air programme, which is the development of the sixth-generation fighter jet with Italy and Japan.
Just last week I was in Telford to see the first fully British tank for 22 years coming off the production line. That is just one strand of our Future Soldier programme to make our Army more integrated and much more lethal. Of course, defence already supports hundreds of thousands of jobs, with real quality to them, in the UK, including over 200,000 directly in the industry. Our additional £75 billion will open up many more opportunities in regions up and down the country.
This is a turning point in UK defence. We must spend more because defence of the realm is the first duty of every Government. We on the Government side of the House recognise that fact. But while I want to see peace and international order being restored, I am also absolutely convinced that it is hopeful thinking—even complacency—to imagine that we can do that without ensuring that we are better protected. The best way of keeping a country safe and protecting our way of life is deterrence: being prepared; being clear-eyed about the threats we face; being clear about our capabilities; backing UK defence science, technology and innovation; carrying not just a big stick, but the most advanced and capable stick that we can possibly develop, and yes, using our military muscle alongside our allies.
Our investment in our continuous at-sea nuclear deterrent makes would-be adversaries think twice. We on the Government side of the House have not come to the conclusion that our nation’s nuclear deterrent is there because an election is approaching; we have always believed in our nuclear deterrent.
This is an additional £75 billion boost for our forces. In the build-up to the NATO summit in Washington, I will do all I can to get alliance members to follow our lead and bolster their armed forces, strengthen their industrial base, invest in innovation, maximise their military deterrence and, most importantly of all, maximise their support for Ukraine. In a more dangerous world, where we face an axis of authoritarian states, 2.5% must become the new baseline for the entire alliance. If we are to deter, lead and defend, that is what is required of us. I commend this statement to the House.
We face a much more dangerous world. British forces are in action, defending international shipping in the Red sea, reinforcing NATO allies on the Russian border and protecting us all 24/7. They are respected worldwide for their total professionalism. They require our support from all sides of this House. We welcome the new commitments on funding for Ukraine and to build up stockpiles, to boost defence exports, to prioritise domestic defence production and to set up new strategic headquarters in the MOD—all plans I have argued for in this post.
The Secretary of State is right to say that the first duty of any Government is to defend the country and keep its citizens safe. Labour will always do what is required and spend what is required on defence. The last time the UK did spent 2.5% of GDP on defence was in 2010, under Labour—never matched in any one of the 14 Tory years since. Two weeks ago, the Labour leader said that we want a fully funded plan for 2.5% of GDP on defence.
We share the same ambition as the Government because we must do more to deal with the growing threats. We want it to be fully costed and fully funded, and set out in the Government’s baseline budgets. This 2030 target is not; it is in a press release. Why was the 2030 plan not in last month’s Budget, or any of the other five Budgets and autumn statements since the Government first promised to spend 2.5% by 2030, two years ago? None hit 2.5%; none reversed the real cuts in day-to-day defence spending; none matched Labour’s record in Government. If this 2030 plan had been in a Budget, it would have been independently checked, openly costed and fully funded. Where is the additional money coming from? How much is coming from which other research and development budgets? How much is coming from cutting how many civil servants, and in which Departments?
The Government have tried this trick before, in the 2015 defence review. Ministers pledged to cut 30% of MOD civil servants in order to make their defence spending plans add up. Civil servant numbers did not go down—instead of going down to 41,000, they went up to 63,000. The Secretary of State mentioned an additional £75 billion five times in his statement. Over the next six years, the Government’s official spending plans are based on 0.5% real annual growth in core defence spending. Why has he invented his own zero-growth baseline to produce this fake figure, claiming an extra £75 billion for defence? The public will judge Ministers by what they do, not what they say. Over 14 years, they have hollowed out our armed forces; they have cut the Army to its smallest size since Napoleon; they have missed their own recruitment targets each and every year; they have allowed morale to fall to record lows; and they have wasted at least £15 billion on mismanaging defence procurement.
Everyone recognises that defence spending must rise to deal with increasing threats. The Opposition have no access to classified threat assessments or military advice, so if we are elected to government we will conduct a strategic defence review within our first year to get to grips with the threats we face, the capabilities we need, the state of the armed forces and the resources available when we get to open the books. That is how Labour will manage the requirements for strong national security and the responsibility for sound public finances.
The Defence Secretary clearly likes Labour’s plans for defence, because so much of them are now Government policy. But there is still no Tory plan to reinforce homeland protections with a new strategic review; to fulfil NATO obligations in full, with a NATO test on our major programmes; to renew the nation’s contract with those who serve with an independent forces commissioner; and to make allies our strategic strength with a new EU, French or German defence agreement. With threats increasing and tensions growing, we must make Britain better defended. With Labour, Britain will be better defended.
The right hon. Gentleman says that he welcomes today’s announcement, but then spends all his time explaining—or rather, avoiding explaining—why Labour is not backing 2.5%, which has a schedule, a timescale and figures that have been published and are in the document produced yesterday and laid in the Library. He says, “Judge us by our action, not our words.” We will, because 11 Members of the Opposition Front-Bench team voted against Trident. It is no good for him and the Leader of the Opposition to go up to Barrow and to claim that they are all in favour of the nuclear defence, because they stood on a platform with a leader who wanted to scrap Trident, pull us out of NATO, and turn the army into a peace corps.
The Opposition tell us, “Judge us on our actions.” Where is the shadow Foreign Secretary, who voted against Trident? Where is the shadow Deputy Prime Minister and the shadow Communities Secretary, who voted against Trident? Neither is there on the Front Bench. Presumably neither is in full agreement with the right hon. Gentleman. When it comes to the defence of the realm and defending this country, the Conservative party has always believed in our nuclear deterrent. We are upgrading it and making sure it is fit for purpose. Neither supports the 2.5%, as the House will have noted.
It is fine for the right hon. Gentleman to come to the Dispatch Box and talk about yet another review. If the problem were having defence reviews, there would be no issues at all. The last thing this country and armed forces require is yet another review—delay, disruption and obfuscation.
With no increase in borrowing or debt, the implication is that there will be deeper cuts to other public services. If the Government have assumed a baseline with spend frozen in cash terms as of GDP, as I think was alluded to by the shadow Defence Secretary, it comes nowhere near £75 billion. As I come from a services family, I wonder if the Secretary of State will commit to a direct increase in spend on accommodation, training and recruitment as part of this proposal, given that we are at a near Napoleonic decline on the frontline and have pushed members of the armed forces into food banks and near penury?
The Secretary of State and I will, of course, disagree on the nuclear deterrent, but I wonder if he will answer one specific point while he retains it. The nuclear enterprise has been exposed as unaffordable in the latest report by the National Audit Office. What assurances can he give the House that the nuclear deterrent will not continue to cannibalise the Ministry of Defence budget and, specifically, the £75 billion he has proposed today?
Secondly, it is fully funded. I know the Labour party does not like the idea, but we will remove 72,000 civil servants from the system, not because we do not think they are good people—fortunately, with low unemployment we know they will be gainfully employed elsewhere—but because we want to get back to the size of the civil service we had before covid, before it expanded greatly. We see no reason to continue to run a civil service with 70,000 additional people each year, when that money could go into the defence of the realm.
The hon. Gentleman asks about our commitment to our armed forces personnel, their families and their accommodation. He may have missed it in my statement, but I mentioned £4 billion that we will now invest in their accommodation and conditions over this period, thanks to this big uplift. He will be aware that last year there were a lot of problems with leaks and boilers not being fixed for considerable periods of time. There have not been those stories this year, because we got on top of that with £400 million and by making sure that contractors are doing their job.
As the hon. Gentleman rightly says, we have our differences on things like nuclear deterrence, but if there is one thing that benefits Scotland in particular, I would suggest it is what goes on at Faslane, with the extraordinary high-quality jobs it produces and the proud part it plays in this nation’s defence.
My right hon. Friend makes an interesting point about what we could do with older equipment. I have to say to him that right now, I am much more minded to send that equipment to Ukraine. That is why, yesterday, I pulled together the biggest donation package to date, in what is now the third year of the war, of equipment to Ukraine. For the time being, I think we will be sending it in an easterly direction.
Secondly, let me gently say that I do not think I have ever heard Liberal Democrats argue for more defence spending, but I strongly welcome the hon. Gentleman to the cause. I agree with him entirely that 2%—which we ourselves set back in 2014—is no longer the baseline that we should be working to, but I gently point out to him that the reason it has taken some time to replace Trident, and in particular the submarines, is that there was a short period under the coalition when we could not get our Liberal Democrat partners to agree to get on with the job.
I entirely agree with my hon. Friend about our leadership in NATO in getting to 2.5%. I was talking about that to the Secretary-General of NATO yesterday. We must ensure that 2.5% is the new level at which people operate. If they did—if everyone joined us at 2.5%—there would be £135 billion per annum more in the collective NATO budget, which would make a huge difference.
However, other measures are really helping. There has been a pay increase of nearly 10% for the less well-paid members of the armed forces in the last year, which has helped with recruitment, and people seeing our armed forces involved in so much action has also helped. The Minister for Defence People and Families is spending a great deal of time ensuring that the many recommendations—67, I think—in the Haythornthwaite review are implemented as quickly as possible.
State-on-state conflict has returned in Europe, and the world is more dangerous, more contested and more polarised. Will the Defence Secretary therefore expand a little on the consequences to UK security and to the UK economy if Russia wins? Before rushing in to spend these increased funds, will he recognise the need to consider the full spectrum of threats and warfare that we face, so that money is wisely spent?
This is not, in my view, money that we are spending; it is money that we are investing in our security, to ensure that Russia and other despotic leaders like Putin never think that they can try it on with us. We will be investing it extremely wisely in many programmes with which my right hon. Friend and other Members on both sides of the House are familiar, as well as in innovative new areas such as the DragonFire.
In welcoming the announcement of an additional £75 billion over the next six years, which is much needed, may I urge the Secretary of State to consider the potential for a fifth successor-class submarine? I note that the patrol times for the Vanguard class are approaching 200 days, which is not sustainable, and it is vital that we give ourselves as much operational capacity as we can with our deterrent.
I also warmly welcome the increase of defence spending to 2.5% of GDP, and I congratulate my right hon. Friend and the Prime Minister on the leadership role they are providing to NATO. On where this extra money will go, will my right hon. Friend elaborate a little more on the balance between meeting the existing challenges in the equipment plan and introducing innovative new capability through the new procurement model that he commended to the House earlier?
New innovations, as my right hon. Friend will have gathered from my comments about spending 5% of GDP on R&D, are very important to us. We can now see how, in an asymmetric war, Russia’s entire Black Sea fleet has been made inoperative by a Ukrainian navy that has no fleet at all—a ghost fleet. We need to consider how we do all that, and this money will be used wisely in that context.
I very much welcome the news of an increase in defence spending, which my party and I have pushed for, but how much of the increase will be feet on the ground and how much will be enhanced cyber-security?
There are, of course, many excellent locations, including in Northern Ireland, where more munitions and missiles are being created as we speak, with about an eightfold expansion. I look forward to visiting some of those who will enjoy the additional £10 billion, bringing the total to about £25 billion, over the next few weeks.
I chair the 1922 defence committee, and the Secretary of State will know from Prime Minister’s questions that the whole Conservative party welcomes this announcement, but may I suggest that the message from the Government would carry so much greater resonance globally if the official Opposition also signed up to it? I am a former member of the armed forces, so I can assure him that the country speaking as a whole—the official Opposition and the Government together—carries much greater weight internationally for the good of the country.
“once again, the UK is leading by example.”
In the light of the £500 million support package for Ukraine—and having seen the awful pictures of missile attacks on Ukrainian cities, including the destruction of the TV tower in Kharkiv in the past 48 hours—can my right hon. Friend confirm that the much-needed ammunition and missile systems will be in Ukraine as soon as possible, to aid its fight against Russian aggression?
We are also using the integrated procurement model to make sure that we do not over-spec things, so that they do not become like—
There is no doubt that the international threat is developing and the world is a more dangerous place, so I welcome today’s statement. What I hear is an investment in the armed forces that we need, not necessarily the armed forces we have. Does my right hon. Friend share my concern that the statement from the Opposition that they are planning to conduct a review is verging on the careless, in that it gives comfort only to those who seek to do the UK harm?
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