Oral Answers to Questions

James Gray Excerpts

Monday 17th June 2013 Commons Chamber

[Dr Murrison]

The EDA spends €30.5 million a year, which is a great deal of money in the current circumstances. I think the House will agree that it would be perverse if we were forced to make cutbacks in defence at home while voting through increases at a European level. I am therefore pleased to say that in November last year I again vetoed the increase in the EDA budget. The UK was the only country to exercise its vote in that way. For as long as the EDA fails to cut the mustard, we will continue to do just that.

[Mr James Gray (North Wiltshire) (Con)]

14. What recent discussions he has had with the Chancellor of the Exchequer about his planned spending review.

[The Secretary of State for Defence (Mr Philip Hammond)]

I have frequent conversations with my Cabinet colleagues on a wide range of Government business. The current spending review will set departmental funding limits for financial year 2015-16 and is due to report on 26 June. My officials have been working closely and collaboratively with the Treasury and Cabinet Office colleagues to identify areas where further efficiencies in defence spending can be achieved.

[Mr Gray]

I am sure the whole House agrees that we live in dangerous and difficult times. Does the Secretary of State not agree with me, and, more importantly, the Chief of the General Staff over the weekend, that any further cuts in defence spending would seriously risk undermining our capability to defend our realm and to project power overseas?

[Mr Hammond]

As my hon. Friend will know, the Prime Minister and the Treasury have already confirmed that the equipment plan will increase in real terms plus 1% in the period from 2015 to 2020, and we are not looking at changes that will reduce military manpower. However, I have to say to him and to the House that efficiencies can always be found in any budget, and we will search for all the efficiencies that we can reasonably find and deliver.