Ministry of Defence: Budget Shortfall

Lord Bruce of Bennachie Excerpts

Thursday 15th January 2026 Lords Chamber

[Lord Coaker (Lab)]

The Government explain it by using the figures I have just outlined. There is billions of pounds of additional money. You cannot alter the fact that it is going from the figure I just gave to the noble Lord, Lord Young, to the figure it will be. The noble and gallant Lord knows far better than me that choices have to be made within that budget about what capabilities you will spend it upon. One of the choices that confronts us is what lessons we learn from Ukraine, and what capabilities we need to ensure that we fight the war of the future and not the war of the past. That is part of the discussion that is going on at present.

[Lord Bruce of Bennachie (LD)]

Is not the reality that the defence investment plan has been delayed because of concerns inside government and the Cabinet about its affordability, especially given the commitment to increase our own sovereign capacity? In that context, is not the reality that cuts will have to be made to achieve that, and simply to fulfil the current budget? Will the Government recognise that we need to have a much clearer and honest declaration of exactly what is needed? The public need to know what the threat is and why we need to spend more on it.

[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.