Ministry of Defence: Budget Shortfall

Lord Brennan of Canton Excerpts

Thursday 15th January 2026 Lords Chamber

[Lord Coaker (Lab)]

I agree with the last point about making sure that the public have greater awareness of the threats faced, and the national conversation. The noble Lord has asked me about that before, and we are seeking to do something about it.

Within the current budgets, we have signed more than 1,000 defence contracts since July 2024, 86% with British-based businesses, and spent more than £31 billion with UK industry. If the noble Lord were Secretary of State for Defence, he would have a budget and would have to make choices about which capabilities he believed were necessary to bring the country to the war-fighting readiness we need. Those are the discussions at the present time. I know there is frustration about the delay to the defence investment plan, but I would rather have a plan that is affordable and meets the needs of our Armed Forces and defence industry, so that we can fight the wars of the future.

[Lord Brennan of Canton (Lab)]

My Lords, I welcome the Government’s commitment to increasing defence spending. It is not just about the quantum; it is also about dealing with project overruns and delays, cancelled projects, poor management and the contract overspending that we saw under the last Government. What will this Government do to make sure that our defence spending is actually well spent?

[Lord Coaker (Lab)]

My noble friend will know the importance of his question. That is why reform has taken place within the Ministry of Defence with the establishment of the National Armaments Director Group. The new National Armaments Director is in post and is addressing the very real problems and concerns my noble friend has rightly pointed out.