The following Statement was made in the House of Commons on Monday 2 June.
“With permission, Mr Speaker, I will make a Statement on the strategic defence review. I have laid the full 130-page review before the House, and I am grateful for the opportunity to do so and to make this Statement on our first day back from the Recess.
The world has changed, and we must respond. The SDR is our plan for change for defence: a plan to meet the threats that we face, a plan to step up on European security and to lead in NATO, a plan that learns the lessons from Ukraine, a plan to seize the defence dividend resulting from our record increase in defence investment and boost jobs and growth throughout the United Kingdom, and a plan to put the men and women of our Armed Forces at the heart of our defence plans, with better pay, better kit and better housing. Through the SDR, we will make our Armed Forces stronger and the British people safer.
I thank those who led the review, Lord Robertson of Port Ellen, General Barrons and Dr Fiona Hill,
‘a politician, a soldier and a foreign policy expert’,
as they describe themselves in their foreword. They, alongside others, have put in a huge effort. This is a ‘first of its kind’, externally led review, the result of a process in which we received 8,000 submissions from experts, individuals, organisations and Members on both sides of the House, including the shadow Defence Secretary. I thank them all, and I thank those in the Ministry of Defence who contributed to this SDR. It is not just the Government’s defence review, but Britain’s defence review. The Government endorse its vision and accept its 62 recommendations, which will be implemented.
The threats that we face are now more serious and less predictable than at any time since the end of the Cold War. We face war in Europe, growing Russian aggression, new nuclear risks, and daily cyberattacks at home. Our adversaries are working more in alliance with one another, while technology is changing the way in which war is fought. We are living in a new era of threat, which demands a new era for UK defence. Since the general election we have demonstrated that we are a Government dedicated to delivering for defence. We have committed ourselves to the largest sustained increase in defence spending since the end of the Cold War, with an extra £5 billion this year and 2.5% of GDP in 2027, and the ambition to hit 3% in the next Parliament. However, there can be no investment without reform, and we are already driving the deepest reforms of defence in 50 years. Those reforms will ensure clearer responsibilities, better delivery, stronger budget control and new efficiencies worth £6 billion in this Parliament, all of which will be reinvested directly in defence.
Our Armed Forces will always do what is needed to keep the nation safe, 24/7, in more than 50 countries around the world; but in a more dangerous world, as the SDR confirms, we must move to war-fighting readiness, and war-fighting readiness means stronger deterrence. We need stronger deterrence to avoid the huge costs, human and economic, that wars create, and we prevent wars by being strong enough to fight and win them. That is what has made NATO the most successful defence alliance in history over the last 75 years. We will establish a new ‘hybrid Navy’ by building Dreadnought, AUKUS submarines, cutting-edge warships and new autonomous vessels. Our carriers will carry the first hybrid airwings in Europe. We will develop the next generation Royal Air Force with F35s, upgraded Typhoons, sixth-generation Global Combat Air Programme jets and autonomous fighters to defend Britain’s skies and to be able to strike anywhere in the world, and we will make the British Army 10 times more lethal by combining the future technology of drones, autonomy and artificial intelligence with the heavy metal of tanks and artillery.
For too long, our Army has been asked to do more with less. We inherited a long-running recruitment crisis, following 14 years of Tory cuts to full-time troops. Reversing the decline will take time, but we are acting to stem the loss and aiming to increase the British Army to at least 76,000 full-time soldiers in the next Parliament. For the first time in a generation, we have a Government who want the number of regular soldiers to rise. This Government will protect our island home by committing £1 billion in new funding to homeland air and missile defences, creating a new cyber-command to defend Britain in the grey zone, and preparing legislation to improve defence readiness.
As Ukraine shows, a country’s armed forces are only as strong as the industry that stands behind them, so this SDR begins a new partnership with industry, innovators and investors. We will make defence an engine for growth to create jobs and increase prosperity in every nation and region of the UK. Take our nuclear enterprise. We will commit to investing £15 billion in the sovereign warhead programme in this Parliament, supporting over 9,000 jobs. We will establish continuous submarine production through investments in Barrow and Derby that will enable us to produce a submarine every 18 months, allowing us to grow our nuclear attack fleet to up to 12 submarines and supporting more than 20,000 jobs. On munitions, we will invest £6 billion in this Parliament, including in six new munitions factories and in up to 7,000 new long-range weapons, supporting nearly 2,000 jobs. The lives of workers in Barrow, Derby and Govan, where the Prime Minister and I were this morning, are being transformed not just by this defence investment but by the pride and purpose that comes with defence work. In the coming years, more communities and more working people will benefit from the defence dividend that this SDR brings.
Ukraine also tells us that whoever gets new technology into the hands of their armed forces the fastest will have the advantage, so we will place Britain at the leading edge of innovation in NATO. We will double investment in autonomous systems in this Parliament, invest more than £1 billion to integrate our Armed Forces through a new digital targeting web, and finance a £400 million UK defence innovation organisation. To ensure that Britain gains the maximum benefit from what we invent and produce in this country, we will create a new defence exports office in the MoD, driving exports to our allies and driving growth at home.
The SDR sets a new vision and a new framework for defence investment. The work to confirm a new defence investment plan, which will supersede the last Government’s defence equipment plan, will be completed in the autumn. It will ensure that our front-line forces get what they need, when they need it. The plan will be deliverable and affordable, and it will consider infrastructure alongside capabilities. It will seize the opportunities of advanced tech, and seize the opportunities to grow the British economy.
As we lose the national service generation, fewer families across this country will have a direct connection to the Armed Forces, so we must do more to reconnect the nation with those who defend us. As the SDR recommends, we will increase the number of cadets by 30%, introduce a voluntary ‘gap year’ scheme for school and college leavers, and develop a new strategic reserve by 2030. We must also renew the nation’s contract with those who serve. We have already awarded the biggest pay increase in over 20 years and an inflation-busting increase this year, and now I have announced that we will invest £7 billion of funding during this Parliament for military accommodation, including £1.5 billion of new money for rapid work to deal with the scandal of military family homes.
This SDR is the first defence review in a generation for growth and for transformation in UK defence. It will end the 14 years of the hollowing out of our Armed Forces. Instead, we will see investment increased, the Navy expanded, the Army grown, the Air Force upgraded, war-fighting readiness restored, NATO strengthened, the nuclear deterrent guaranteed, advanced technology developed, and jobs created in every nation and region of this country. The strategic defence review will make Britain safer, more secure at home and stronger abroad”.
My Lords, first, I add to the widespread praise that the noble Lord, Lord Robertson of Port Ellen, General Sir Richard Barrons and Dr Hill have rightly received for leading and delivering this comprehensive and thorough strategic defence review document. It is indeed a transformational and genuinely strategic review and goes into great depth as to the purpose, intention and delivery of the defence of our nation and our interests abroad in its widest sense. Their emphasis that as a nation, and a proud one at that, we need the entire people of these islands to share, comprehend and be openly supportive of defence and all that we expect of our brave and committed Armed Forces is a point extremely well made. I also thank the Minister for taking the time to meet me yesterday prior to publication of the review. It was much appreciated.
As technological advance changes defence and our preparedness at a frightening pace, it is absolutely right that the entire country supports and has a broad understanding of what the future might hold. The review proposes some 62 recommendations, all of which the Government have accepted, and a number of which have already been in progress from the previous Administration. However, as the Secretary of State for Defence made clear in the other place, the world we live in now contains novel threats that are arguably more dangerous than we have ever faced before. As the spectre of Putin’s Russia looms over Europe’s eastern flanks, we can no longer take peace for granted. The case for transformation is both compelling and immediate.
It is in that vein that we on these Benches welcome the contents of the review: the commitments to continuing the AUKUS nuclear-powered submarine programme, to GCAP, to increasing munitions production and to stockpiling are all most positive steps. However, I have a number of concerns. The first, I am sure, will come as no surprise to the Minister: there has been much consternation as to the correct level of funding required, but it is evident that the Overton window on defence spending is shifting rapidly. We on these Benches welcome the Government’s announcement that they will increase the Ministry of Defence budget to 2.5% of GDP by 2027. However, the recommendations in the review all come with a price tag, and the authors were clear that the plan is really affordable only if and when the Government commit to 3%.
My Lords, I start where the noble Earl, Lord Minto, finished by suggesting that it would be extremely welcome for your Lordships’ House to have a full debate on the strategic defence review. It is a full, thorough and detailed review that merits detailed reading. The noble Lord, Lord Robertson, and his team have clearly put in a huge amount of work, and it would repay noble Lords and the Armed Forces if we were able to explore at least some of the 62 recommendations in detail.
The review gives many recommendations, some of which have been trailed but some have not, and which are sometimes much more complicated than we might imagine. There are commitments to our Armed Forces, to recruitment and retention and to increasing the number of the reserves. That is the headline, but the detail of the recommendations says that we should increase the size of the reserves “when funding allows”. That gets back to the fundamental question raised by the noble Earl: 2.5% is not going to take us far enough. What plans do His Majesty’s Government have to enable us to implement the 62 recommendations. assuming that the other place and your Lordships’ House, after due scrutiny, agree with the Government that all 62 recommendations should be implemented?
There is clearly a need for a lot of detailed scrutiny because many issues are raised in the review, starting with the essential context that the world has changed a lot since the start of the post-Cold War era, and indeed since the start of the review. Many issues need to be thought about, some of which we have had the opportunity to think about over months and years while others have been floated recently. As the noble Earl, Lord Minto, pointed out at Questions, the commitment to the nuclear deterrent is obviously important and welcome. I was expecting to see the noble Lord, Lord West, here to take up the discussions on the future of sea capabilities; the transformation of the carriers is presumably something on which he could run a Question for Short Debate by himself.
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As of yet, the Government’s messaging has appeared rather mixed, to put it politely. Most confusing were the Defence Secretary’s comments this morning on “BBC Breakfast” that the Government have an ambition to reach 3% by 2034, then that he was 100% confident that 3% was achievable in the next Parliament and then that reaching 3% was predicated on economic growth. It appears that all the Government have given are vague statements that—in the fullness of time, in due course, when conditions allow and at the appropriate juncture—they may raise defence spending to the 3% required. It is surely a position that Sir Humphrey would be thrilled with, so can the Minister confirm that all the recommendations in the review can be paid for in full within the current spending limits?
That becomes even more important when we consider the recent overtures from NATO. We have seen today that the Secretary-General will strongly push member states to bolster their budgets to 3.5% annually, plus 1.5% for defence infrastructure. The Danish Prime Minister has stated that waiting until the 2030s to boost defence spending will be “too late”, and the former Chief of the General Staff, General Sir Patrick Sanders, has said that he is “really worried” that the Government are not acting fast enough on defence. Can the Minister confirm that the UK will follow NATO’s likely new targets when they are set at the Hague summit?
I have two further observations. First, there appears to be a slight lack of focus on amphibious capabilities. In fact, there are only three mentions of the word “amphibious” in the document. Given that the Government have scrapped HMS “Bulwark” and “Albion”, thereby leaving the Royal Navy with no landing platform docks and relying solely on the Bay class ships of the Royal Fleet Auxiliary, ships that themselves are ageing rapidly, can the Minister provide further clarity on the future of the UK’s amphibious capabilities?
Secondly, the Minister will not be surprised to hear that I would have hoped for further measures on the reform of the structures within the Ministry of Defence. There is no doubt in my mind, from the albeit limited time that I served there, that there is considerable scope for streamlining, updating and commercialising large components of the overall modus operandi. In my view, the MoD has outdated views and practices, particularly in the areas of risk management, the concept of change and commercial imperative, that restrict the productivity and effectiveness of such a critical and large organisation.
Page 65 of the document mentions the increasing use of AI within the MoD to enable the department to redeploy staff currently working in finance, human resources and commercial functions, thereby aiming to reduce the Civil Service costs by 10%. That is of course a positive step, although perhaps a little unambitious, but it also states that the focus should be on productivity rather than headcount. Given that the MoD civilian personnel headcount was 61,706 as of 1 April 2025, almost as large as the British Army itself, is there not a compelling case for looking at how we might streamline the Civil Service radically within the Ministry of Defence?
Further, the review calls for the creation of a number of newly formatted bodies: a defence investors’ advisory group, a defence innovation organisation and a defence research and evaluation organisation. My concern here is that these new bodies could simply add to the already intricate web of overlapping and competing organisations and agencies of the MoD, thereby confusing the structure rather than enhancing it.
As the Minister knows well, many additions are made for valid reasons, but rarely are existing structures dismantled to make way for innovation. For example, we already have the Defence Science and Technology Laboratory, which was split from the Defence Evaluation and Research Agency in 2001, with responsibilities for advanced technological research. How will the new defence innovation organisation and defence research and evaluation organisation fit in with DSTL? We must ensure that there is no duplication of functions if we are to have, as the review sets out, a policy of “one defence”. The critically creative work undertaken by DSTL needs as much freedom from interference as possible for it to flourish and deliver exception.
I have a final question for the Minister. Given the importance of the review and the significance of its recommendations, I hope the Government will provide time for a full debate on the strategic defence review to allow the House to fully consider the UK’s vital new strategy for defence. The challenge now is how to fund it in full to fulfil the hopes and expectations of the reviewers and the contributors to the limit.
There are many detailed questions about capabilities and procurement but also about transitions—for example, the upgraded Typhoons. Are we sending back the existing Typhoons for an upgrade or procuring more of them and keeping the production of the Typhoon going, pending the introduction of Tempest? There are a lot of questions about procurement that are worth considering.
There are also questions not just about the headline figure of 2.5% of spending but about savings. On page 5, there is a suggestion that £6 billion of new savings will be found, and then there is talk of spending £11 billion. Does the £11 billion include the £6 billion that has just been found from savings and is now being recycled, or is the £11 billion new money? There are a lot of issues that would probably merit longer than the Minister will have for his response today.
There is one welcome point in terms of recruitment. It is very welcome that a little bit of recommendation 16 suggests that the medical requirements will differ from role to role, because that has clearly been part of the recruitment difficulty. That is very welcome, as are the commitments to improving accommodation and the defence industrial base. There are many more questions than I have time to ask and the Minister has time to answer, but we welcome the review and look forward to working with the Government over the next decade and beyond.