Defence: Expenditure Debate

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Department: Ministry of Defence

Defence: Expenditure

Lord West of Spithead Excerpts
Wednesday 17th July 2019

(4 years, 9 months ago)

Lords Chamber
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Earl Howe Portrait Earl Howe
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My Lords, it is undoubtedly true that the spending review later this year will be an important event for defence. It will build on the modernising defence programme, which will take forward our threefold agenda to mobilise, modernise and transform defence so that the Armed Forces can tackle new threats. As for equipment, we expect to publish our financial summary of the equipment plan in the autumn, and we will address the longer-term affordability of the plan in the spending review.

Lord West of Spithead Portrait Lord West of Spithead (Lab)
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My Lords, I feel considerable sympathy for the Minister because he is defending the indefensible. The Foreign Secretary, who I think probably has a reasonable understanding of our foreign and international commitments, has said that we will double the percentage of GDP spent on defence. The former Defence Secretary, Michael Fallon, continually argued against me, saying that there was lots of money for defence, but three weeks after coming out of the post he said that there was a crisis and we needed to spend a lot more on defence. His successor said the same. Clearly, there is a real problem. Come this summer, will we make sure that there is no further hollowing out of our Armed Forces—I emphasise that they are hollowed out—to ensure that we meet our procurement budget?

Earl Howe Portrait Earl Howe
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I think we can take some reassurance from the fact that the last Budget settlement gave defence a substantial boost, enabling us to say with confidence that we do not have to make any cuts, particularly on the equipment front. However, it is true—as I have said publicly before—that the forecast cost of our equipment plan exceeded the budget over a 10-year period, and if we took no action the plan would not be affordable. We are taking action, however, particularly through effective management to control costs and drive efficiencies, and, as I said, there is additional funding in the Budget. However, the spending review will count for a lot.