Armed Forces Bill

Debate between Fred Thomas and Mark Francois

Report stage
Monday 22nd June 2026 Commons Chamber

[Mr Francois]

I thank the hon. Lady for a very helpful intervention. I will come to the NHS in a moment, but during the Bill’s earlier stages we have suggested that if the Government do not feel that they can accept this amendment—amendment 3—in this primary legislation, which was our preferred route, now that we know there will be a new Bill on special educational needs, they should seek to address the problem in that Bill, and because it is a Department for Education Bill, hopefully local education authorities will then give it considerable weight. So we are in absolute agreement about that route, and, if I may say so, what the hon. Lady has said about education Ministers is heartening.

Amendment 4 makes, in a sense, the same argument as we have made on the EHCPs with regard to fostering or adoption by service personnel. Amendment 5 argues, in a similar vein, that military personnel who transfer from one military location to another should not lose their place on any NHS waiting list as a result. Again, there is forthcoming legislation on NHS reorganisation, and we hope that this issue can be tackled via that legislative route. I believe this is a relatively straightforward moral argument, in all three cases, and I hope that the Government may yet accept the logic of what we are putting forward this evening.

Let me now turn to the subject of funding for the proposed new Defence Housing Service. As I said during the Select Committee stage of the Bill, there is almost universal agreement that we want to improve the quality of accommodation for service personnel and their families. The remaining area of contention is how best to achieve that, given that there is almost complete unanimity on the desired end state.

Nevertheless, following media reports—especially in The Sunday Times—Opposition Members are increasingly concerned about the possibility that money for capital improvements, and even maintenance, may now be taken away from the Defence Housing Service before it is even born, and reallocated to other priorities in Labour’s very long-awaited defence investment plan. We know from evidence sessions on the Bill that there is already a plan for the Defence Housing Service to reduce the spending on housing maintenance by 25%, compared to current practice. That sounds worrying, although officials, and indeed the previous Minister, were keen to stress that they believed the new Defence Housing Service would be able, by renegotiating certain contracts and the actual operation of maintenance, to do this more efficiently.

The proof of the pudding for all that will be very much in the eating. However, what we understand is now being proposed is that the capital allocations for the Defence Housing Service will be raided in order to fund other defence priorities elsewhere. That process will only be exacerbated if, as has been widely reported, the amount of money that will be available for the DIP—if and when it is finally published—will be the lowest of the three options widely canvassed in the press, namely an additional £10 billion of spending on defence over the next four years.

Given the challenges faced by defence—which were laid out starkly by both the former Defence Secretary and the former Armed Forces Minister in their powerful resignation letters—£10 billion over four years will not even touch the sides. Let me humbly remind Labour Members that all three authors of the strategic defence review, which was published over a year ago on 2 June 2025, were adamant that the price tag for delivering Labour’s much-vaunted SDR would be defence spending of at least 3% of GDP. What is on offer is clearly nowhere near that. Indeed, in his scathing resignation letter, the former Defence Secretary said that all that was being offered to him was an increase in defence spending from 2.6% of GDP this year to 2.68% of GDP by 2030—in other words, a 0.08% increase over four years. Those numbers completely and utterly demolish Labour’s constantly repeated mantra that they are now funding

“the biggest…increase in defence spending since the Cold War.”

That is simply not true.

However, the situation is even worse than that. In addition to the headline “increases”, which are now minuscule, as the resignation letter starkly reveals, last year, at the Treasury’s behest, the Labour Government introduced a target of making efficiency savings—“cuts” in plain English—of some £2.6 billion from operational and revenue spending in the Ministry of Defence. What that means in practice is fewer ship days at sea, fewer hours for our pilots to fly, and fewer exercises on Salisbury plain. Incredibly, in this financial year—2026-27—the efficiency savings target has now been increased to £3.5 billion of cuts, which means even more operational and revenue spending reductions than last year.

For Labour to continue the mantra that it has provided the largest increase in defence spending since the cold war, in the face of these self-imposed, Treasury-driven in-year cuts, simply destroys any credibility that the Government had that they really are striving to keep this country safe. This is not the result of enemy action—unless one regards the Treasury as the enemy, which many in the military now do. This is a self-inflicted wound brought about by a Labour Government who are completely paralysed by inaction, and who now have no idea whatsoever of how to credibly fund the defence of this country.

In the light of today’s events, it remains to be seen whether the right hon. Member for Makerfield (Andy Burnham) will attempt to introduce any order into this chaos. If he does, he and his new Chancellor—whoever that turns out to be—will still have to say how the Labour Government are going to pay for it. Are they going to increase borrowing, which will frighten the bond markets, or are they going to cut welfare, which would probably provoke a Back-Bench revolt?

[Fred Thomas (Plymouth Moor View) (Lab)]

Which would you do?

[Mr Francois]

We would reduce welfare spending and spend it on the defence of the realm. That is our policy.