Defence Investment Plan

We are going to come to the statement, but I have a concern. There are strong rumours that the Government are going to produce their defence investment plan on Friday. That would be an utter disgrace and an utter kick in the face to Members of this House. I say to Downing Street that, under the ministerial code, it is the Government’s responsibility to ensure that major announcements are made here. This may be speculation, and I am sure it will be corrected, but I will be appalled if it is done on a Friday, given that Members have been waiting so long.

This affects all parties who have a great interest in the defence investment plan, including Members on the Government Benches. We all have jobs, and we all have people who serve in the armed forces. We must end the speculation and treat this House with the respect that elected Members deserve. Once again, it seems to me that we are becoming second-class citizens under this Government. I do not want that to be the case, and I hope that I am going to be proved wrong.

(Urgent Question): To ask the Secretary of State for Defence if he will make a statement on the defence investment plan.

As the Prime Minister set out today at Prime Minister’s questions, and as the Defence Secretary outlined just last week, we will publish the defence investment plan ahead of the NATO summit in just a few weeks’ time. The Prime Minister, the Defence Secretary and the entire Defence team are determined to get the DIP right to ensure that we deliver the best equipment and technology into the hands of our frontline forces, while investing in and growing the UK economy. We are determined to make the right choices for the country to ensure that the UK is secure at home and strong abroad.

Even as we finalise the DIP, we continue to back British jobs, British businesses and British innovation. Since July 2024, the Government have signed 1,400ysv major contracts, with 94% of that spend going to UK-based firms. In just the past four weeks, we have announced a £115 million hybrid Navy package for the UK-led mission in the strait of Hormuz; a £1 billion contract for new mobile artillery for the British Army; rapidly procured new weapons for our Typhoons, which have already been deployed to shoot down drones at low cost; 13 new contracts, worth up to £4 million each, with small, home-grown British businesses to foster growth and innovation, and to find the next billion-pound UK defence unicorn; and a pay award of 3.6%, so most armed forces personnel have received a cumulative pay award of 14.1% since this Labour Government were formed.

I am grateful to Mr Speaker for granting this urgent question. Before I begin, may I pay tribute to the three Royal Navy personnel who tragically died in a helicopter crash last week? We offer our heartfelt condolences to their families from this side of the House.

After months of delay, there has been considerable speculation that the defence investment plan will finally be delivered this week. Is that the case? Specifically, and to echo what Mr Speaker just said, there has been considerable speculation that the DIP may be published on Friday. As Mr Speaker said, this House is not sitting on Friday. Let us be clear: with a war on two fronts, this is not just another Government publication, but, given the context, a vital moment for our country and for this Parliament. Does the Minister understand that it would be totally unacceptable to all Members if the defence investment plan was published on a day when the House is not sitting? Can he explicitly confirm, when he gets up, that the defence investment plan will be published when the House is sitting?

You need no reminding, Madam Deputy Speaker, of the total shambles in this Chamber last June when Labour published its strategic defence review and gave advance sight of that market sensitive document to the defence industry from 8 am that morning, while I, as shadow Defence Secretary, never got to see a copy before responding from this Dispatch Box. So will the Minister also give an absolute assurance that, whenever the DIP is published, first sight—before the document is shared with any other external stakeholders—will be reserved for Members of this House?

I join the hon. Gentleman in passing on my personal condolences in relation to the helicopter crash in Devon, which, as a Devon MP, I know has hit the military city I represent very hard. I come from a Royal Navy family and know many people who fly similar helicopters, and I welcome the cross-party support for the families of the victims.

The hon. Gentleman asked when the DIP will be published. As the Prime Minister and the Defence Secretary have said, it will be published before the NATO summit in only a few weeks’ time. The “few weeks’ time” should have answered his final question, but I understand he wanted to get that in for a social media clip. Instead of wanting to know the answer, he would already have known it.

The hon. Gentleman would also have known that the SDR was not market sensitive, so what he said was not correct. We are, however, very clear that we are investing more in defence. We are ending the hollowing out and underfunding that his Government presided over. We are very clear that the DIP will be published before the NATO summit. [Interruption.] He can keep chuntering, but I am trying to answer his questions. He had an opportunity to ask them; let me have a go at answering them. [Interruption.] He is choosing not to do that. Spending decisions are made by the Prime Minister—[Interruption.] The hon. Gentleman is still chuntering, which is not good. Spending decisions will be made by the Prime Minister and the Chancellor in the usual way, as applies to any Department, including the Ministry of Defence, and we will publish the defence investment plan before the NATO summit.

I call the Chair of the Defence Committee.

I associate myself with the comments of the Minister and the shadow Defence Secretary, and my heartfelt condolences and sympathies are with the families of our brave service personnel who, sadly, have perished.

The strategic defence review set the ambition, but the defence investment plan is supposed to say what will be funded, when and with what trade-offs. Will the Minister confirm that, when the defence investment plan is finally announced, it will be announced in this Chamber to enable proper parliamentary scrutiny? Will he also confirm that it will contain all the details that hon. Members, British taxpayers and industry expect from an investment plan, rather than just a headline figure, some headline commitments and a few aspirations?

I thank my hon. Friend for the work he does for defence and the work he does on the Defence Committee. He knows that the commitment the Defence Secretary made from this Dispatch Box to publish the plan before the NATO summit will be honoured. When it comes to the details, we have committed to go beyond the equipment programmes we inherited. The equipment plans published by the last Government dealt only with equipment, and as my hon. Friend will know, 47 of the 49 major defence programmes we inherited were delayed and over budget at the general election. He will also know that 30% or so of the equipment plans were unfunded, and many of them were unsuitable for the threats we are facing. That is why the defence investment plan will go beyond just equipment and deal with people, estates and infrastructure, as well as dealing with this reform. I am certain that he will have heard the commitments given by the Prime Minister and the Defence Secretary, and I look forward to debates in this House on the defence investment plan, when it is published.

I call the Liberal Democrat spokesperson.

I associate myself and my hon. Friends with the condolences paid to the families of the crew who died in the tragic helicopter crash last week.

The defence investment plan is still not published, and after nine months, industry waits for certainty, our allies for clarity and our armed forces for the investment they were promised. At a time of acute threat, defence cannot be switched on overnight. We cannot rebuild industrial capacity, train personnel, modernise equipment or restore deterrence through vague promises about working at pace. Small and medium-sized enterprises are clear that investment decisions are delayed, expansion is on hold and our contracts are being lost overseas. British firms stand ready to grow and hire, but this delay is freezing procurement, paralysing the supply chain and creating doubt about Britain’s commitment to rearmament.

Will the Secretary of State confirm whether he has assessed the economic damage caused to British businesses by the delayed defence investment plan? Given the apparent deadlock between the Treasury and the MOD, will he seriously consider our proposal to issue £20 billion of defence bonds?

I thank the hon. Member for his questions, and for the condolences on behalf of his party. It was polite of him to promote me in his question; I will ensure that the Secretary of State has heard what he had to say.

It is important to set out that we have not waited for the defence investment plan to deliver the new capabilities, the new contracts and the new investment. The hon. Member mentioned small businesses, and earlier this year we stood up the Defence Office for Small Business Growth to create a single doorway for small businesses to access defence. We have supported more small businesses, and we have increased the target for direct spend by the Ministry of Defence by 50%, which is an extra £2.5 billion of direct spend going into small businesses.

We will continue to support SMEs. The 1,400 major contracts I mentioned in my response to the initial question support not only companies such as BAE Systems, Babcock and Thales—the very large defence primes—but the entire supply chain, with many of those contracts going to small businesses. We want to see the innovation, job creation, energy and dynamism of small businesses have a bigger role in defence, and that is especially true in areas such as autonomy, in which many of the companies from which we are buying capabilities are small businesses with huge growth potential. When the defence investment plan is published, the hon. Member will see that we are backing those innovative companies and SMEs.

Does my hon. Friend agree that the decision taken early in this Parliament to halve the overseas aid budget and put that into defence shows that this Labour Government are prepared to take the tough political decisions needed to fund rearming this country, unlike the Conservatives, who had 14 years to invest in the armed forces, but instead left them and their equipment in the parlous state in which we found them in 2024?

My hon. Friend is absolutely right that the difficult decision made to move 0.2% of GNI spent on international aid to defence spending was an important one. It showed that, in this new era of hard power, we need to increase spending on defence and to increase capabilities, which is precisely the decision taken in the past. We are very proud to be increasing defence funding. Compared with the Conservatives, who cut defence spending in their first Budget, we increased defence spending in the first Labour Budget.

It is pretty extraordinary to see the partisan way in which the Minister has approached every single question. He has been completely incapable of giving this House, or indeed Mr Speaker, the assurance asked for on multiple occasions, and that only leads us to assume that he is hiding the untruth, which he wishes he did not have to say: he will not be bringing the defence investment plan to this House.

That is pretty extraordinary, and it is not just one year, but 14 years. This Government claim we had 14 years in which we made errors, and they may be right about many of them—in fact, I have criticised some of them myself—but they had 14 years to plan and have now had two years in government, and we are nowhere. We are still seeing defence capability fall. In fact, NATO puts us at No. 31 out of 32 of those that have failed to meet their capability targets, and last is Iceland, which does not even have a military.

I have a lot of time for the right hon. Gentleman, and I enjoy listening to his clips on social media, on which I am sure this will appear very shortly. [Interruption.] I have to say to him politely—[Interruption.] I have to say to him politely—[Interruption.]

Order. I do not need such loud chuntering from the Opposition Front Bench.

I have to say to the right hon. Gentleman, politely, that when we have military families living in housing with black mould in bedrooms, broken boilers and leaky roofs, the investment we are making in defence housing is absolutely vital. He says that there may have been errors—there certainly were. Defence matters to me, as someone who comes from a military family and represents a military constituency. We will publish the defence investment plan shortly. What it will show is a Labour Government increasing defence spending, ending the hollowing out and underfunding that his Government, in which he was a Minister, presided over: new capabilities for our armed forces and a stronger Britain in a more dangerous world. [Interruption.] I look forward to seeing the entire answer on his social media, not just his clip. [Interruption.]

Order. Mr Tugendhat, you had the luxury of coming in early on this urgent question. Other colleagues would like to be heard as well. Minister, have you finished?