Armed Forces Bill

Debate between Calvin Bailey and James Cartlidge

2nd reading
Monday 26th January 2026 Commons Chamber

[James Cartlidge]

Wait a minute. That is why Labour is making in-year savings of £2.6 billion at the MOD and has a black hole of £28 billion—because the extra cash it is planning for defence is simply not enough.

[Mr Calvin Bailey (Leyton and Wanstead) (Lab)]

Will the hon. Gentleman give way?

[James Cartlidge]

I will give way to the hon. Member for Edinburgh South West (Dr Arthur) first.

[James Cartlidge]

The hon. Gentleman does not have to apologise for interrupting. He offered to intervene, and I accepted; that is how this place works, and his intervention was entirely fair. To be frank, yes, spending is increasing, but it is not increasing anything like enough in relation to how much costs are going up. When I first became shadow Secretary of State and was calling for 2.5%, I said that that would only stabilise things—I was very open about that. I did not say that it would lead to a much bigger force and all the other things we would like to see, but we can all see what has happened. President Trump has been very clear that he wants to see NATO members spending much more and much more rapidly. We all know what the reality is: the United States is going to be doing less, focusing on its priorities. We need to do more, which means much higher spending.

[Mr Bailey]

In the spirit of honesty and accepting past failures, the equipment plan that you presented this Government with had a gap in it of £7 billion to £29 billion in the MOD’s view, or £16 billion in the view of the National Audit Office. Do you accept that you handed over a hospital pass?

--- Later in debate ---

[James Cartlidge]

I am very grateful to the hon. and gallant Gentleman, but when Putin invaded Ukraine, something pretty extraordinary happened: inflation went through the roof right around the world. The whole world was trying to buy defence equipment, and it still is. Guess what? That means a higher inflation rate in defence.

[Mr Bailey]

Will the shadow Secretary of State give way?

[James Cartlidge]

I am responding to the hon. and gallant Gentleman’s first intervention. Anyone coming into government should have had some sense that there was going to be inflationary pressure in the system. That is not the only reason that there is a £28 billion black hole, but it is a key factor.

[Mr Bailey]

Will the shadow Secretary of State give way?

[James Cartlidge]

I will make some progress .