Defence Spending: Wales

2. What assessment she has made of the potential impact of increased defence spending on Wales.

3. What assessment she has made of the potential impact of the Government’s increased defence spending on Wales.

In the spring statement, the Chancellor announced a £2.2 billion increase to the defence budget for 2025-26. That will help grow the Welsh economy and our thriving defence sector in Wales, which is home to more than 7,000 jobs, supported by the Ministry of Defence and major companies such as QinetiQ, BAE Systems, Airbus, General Dynamics and Thales. As part of the strategic defence review, a £100 million boost was announced for the repair and renewal of military homes in Wales, benefiting hundreds of service families.

I was glad that the Government’s strategic defence review was launched in Scotland last week, where increased defence spending will create new jobs and fuel economic growth, despite the SNP’s refusal to back it. I was similarly pleased that the SDR included hundreds of millions of pounds of investment in forces housing in both Wales and Scotland. Will the Minister update the House on the positive impact that the review will have in Wales, and across the Union?

I warmly welcome the £100 million boost for military homes in Wales—part of the £7 billion spend to tackle the state of armed forces accommodation in this Parliament. That will support urgent repairs, such as fixing boilers and roofs and tackling damp and mould, and facilitate the long-term renewal of military housing for hundreds of service families across Wales. That follows our action to bring 36,000 homes on the defence estate, including more than 700 in Wales, back into public ownership.

The strategic defence review will make Wales and the rest of the UK safer at home and stronger abroad, just as it will my constituency of Gillingham and Rainham. Does the Minister agree that the SDR is further proof that only Labour can be trusted to protect our Union, while Opposition Members wring their hands, wish they did more when they were in power, or look for ways to make apologies for foreign aggression?

I agree with my hon. Friend. The Conservatives failed to deliver a plan for our defence industry, and left our homes for heroes in poor condition; and while Plaid Cymru plots to leave NATO, and Reform cosies up to Putin, Labour invests in our military, our security and our veterans.

The Minister sounds unexpectedly optimistic, given that so many question marks remain over promises and aspirations for defence spending. Can she confirm the impact of handing over the Chagos islands and billions of pounds to Mauritius? [Interruption.] Can she confirm the impact of that decision on Wales?

I want to focus on the benefit for Wales from the defence budget; that is what these questions are about. This spending will bring the industry more jobs, and upgrade our military homes in Wales.

I call Jim Shannon on Wales.

I welcome the Government’s increased spending in Wales. First, it is good for jobs and opportunity, and secondly, those in uniform, whether in the Army, the Royal Air Force or the Royal Navy, come from all over the United Kingdom—from Wales, Scotland and Northern Ireland. Does the Minister acknowledge that the new spend on defence could be shared proportionately between those countries, be it on those who serve in uniform, or on companies that are involved in the defence sector?

As I am sure the hon. Gentleman knows, Northern Ireland benefits considerably from companies such as Thales bidding into that defence fund. For many years, there have been many excellent service personnel from Northern Ireland. I am sure that he will look after them when they become veterans.

I call the shadow Secretary of State.

Given how precarious global affairs are, Conservatives believe that defence, and defence jobs, should be a No. 1 priority for the Labour-controlled Wales Office. Major defence companies, such as General Dynamics in Merthyr and Caerphilly, and Tekever in Ceredigion, among others, await answers. Plaid wants to break up the cherished Union, withdraw Wales’s full membership from NATO and surrender our nuclear defence system. Is the Minister seriously concerned about that, and if so, will she rule out her Labour Senedd colleagues ever forming a coalition with the nationalists in an expanded Cardiff Bay?

I am sure I do not need to remind the hon. Lady that defence is a reserved matter. Those decisions will be taken in this UK Parliament, and it is up to the Welsh Senedd how it forms a Government following the elections next year.