Tobias Ellwood
Main Page: Tobias Ellwood (Conservative - Bournemouth East)Department Debates - View all Tobias Ellwood's debates with the Ministry of Defence
(1 year, 1 month ago)
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Madam Deputy Speaker (Dame Eleanor Laing)
I call the Chair of the Defence Committee.
Mr Tobias Ellwood (Bournemouth East) (Con)
I am conscious that there is a statement to follow, but may I just pause and say thank you to the Defence Secretary and his team for the tireless work they have done in trying to secure additional funding of £11 billion and an increase in defence spending of 2.5%? It was not to be, and our military will be affected by that, not least our land forces. However, I do welcome the AUKUS agreement, which will secure hundreds of highly skilled jobs up and down the country. Is any part of the £3 billion of additional funding for the nuclear enterprise part of the £10 billion reserve for Dreadnought, or is it ringfenced for the AUKUS procurement programme, and is any of the £5 billion coming through subject to VAT, which would of course mean that one fifth of it will go back to the Treasury?
Mr Wallace
My right hon. Friend makes an interesting point about the details of the announcement. Obviously, the details will come forward in the Budget. What I can say is that the £2 billion-plus is new money. It is not part of the reserve or anything else, and it is separate from the £2.3 billion for Ukraine. It also comes on top of the £560 million of extra money for weapons and restocking announced in the autumn statement. On the nuclear chapter, the £3 billion is a recognition of the need for increased defence capability in that space, but also of the need to invest now in infrastructure, which, if we do not start now, will not be fit for purpose when AUKUS starts towards the end of the decade.