Ministry of Defence: Budget Shortfall

Viscount Trenchard Excerpts

Thursday 15th January 2026 Lords Chamber

[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.

[Viscount Trenchard (Con)]

My Lords, I am not sure whether the Minister actually acknowledged the shortfall of £28 billion as identified by the Chief of the Defence Staff and the other chiefs. I understand that we must wait for the defence investment plan, but can he say whether the shortfall, or cash squeeze, that the Ministry of Defence is facing is the reason for the delay in GIGO’s award of its first contract to Edgewing with regard to the GCAP trilateral fighter jet project?

[Lord Coaker (Lab)]

Many decisions will be subject to the defence investment plan. The noble Viscount has been an advocate of the GCAP programme for a number of years and was berating me a few months ago regarding whether the Government support the programme. He knows that the Government support it, and he has seen the importance of the relationship between Japan, Italy and the UK. The specifics of that contract will have to wait, but the overall support for GCAP is there and has been well stated in this Chamber and beyond.