Strategic Defence Review: Funding

(Urgent Question): To ask the Secretary of State for Defence if he will make a statement on his plans to fund the recommendations of the strategic defence review.

We are in a new era of threat and demands on defence are rising. The strategic defence review sets out a vision to make Britain safer, secure at home and strong abroad. The Government have accepted all 62 of the review’s recommendations, and its implementation is being delivered through a whole of UK Government effort. The defence investment plan will deliver on the vision of the strategic defence review and put right a programme that we inherited from the Conservatives that was over-committed, underfunded and unsuited to the threats we face. It is a 10-year plan and we must get it right.

We are not waiting on the DIP to deliver. We have established the defence cyber and electromagnetic command; launched the Military Intelligence Services and the defence counter-intelligence unit; announced that the UK will purchase 12 new F-35A jets; and launched UK Defence Innovation to streamline our innovation, with a £400 million ringfenced budget.

This Labour Government have done more. We have reasserted Britain’s place in the world with a rebooted Lancaster House treaty with France, signed the Lunna House treaty with Norway and published the defence diplomacy strategy. We have brought back defence exports into the Ministry of Defence, with 2025 being the highest year of defence exports in 40 years, including landmark deals with Norway and Türkiye. We have published the defence industrial strategy with nearly £800 million to make defence an engine for growth in every corner of the United Kingdom and we have unveiled the groundbreaking Atlantic Bastion programme to make Britain more secure from Russian undersea threats in the north Atlantic. We have also reversed the Tory privatisation that failed our armed forces, with our forces living in appalling accommodation—that is 40,000 forces families—with a £9 billion programme that can upgrade nine in 10 defence houses. This is a Labour Government delivering for Britain and delivering for defence.

Labour’s strategic defence review had three co-authors. I would like to ask the Minister a question about each of them in turn. Does he agree with Dr Fiona Hill that there is a “bizarre” lack of urgency in Government defence planning?

Does he agree with General Sir Richard Barrons, co-author of the SDR, that there is

“an enormous gap between where we have to be to keep the country safe…and where we actually are”?

Or does he agree with Lord Robertson, lead author of the SDR, former Labour Defence Secretary and distinguished former NATO Secretary-General, that the Prime Minister has shown a “corrosive complacency” towards defence?

All of those strong words have been spoken in the past 48 hours. This is no coincidence: the authors obviously understand the principles of combined arms manoeuvre. The truth is that Labour’s rhetoric on defence simply does not match the financial reality. We know that in the last financial year the Ministry of Defence was forced to make £2.6 billion of crippling in-year cuts. It has now been reported that in this financial year it will be asked to find a further £3.5 billion on top. That would be catastrophic for our armed forces. Can the Minister categorically assure the House that there will be no in-year savings exercise this year?

Finally, Labour’s SDR, published last June, promised us a comprehensive 10-year defence investment plan, which is still nowhere to be seen. One Labour peer told me prior to Easter that waiting for the DIP was like waiting for Godot, except that Godot finally turned up. Can the Minister now tell the House in what month and what year Labour’s much-vaunted defence investment plan is actually going to be published, or is Labour’s Chancellor, who is adamantly refusing to sign it, still going to hold our armed forces to ransom? Is that not why our Prime Minister, who resolutely refuses to overrule her, is all mouth and no trousers on defence?

Deary me, I see the armchair general is out in full force today. Let me personally place on record again my thanks to Richard Barrons, George Robertson and Fiona Hill for the superb work they did in authoring the strategic defence review. They know more than many the mess that the right hon. Member’s Government left our defence in, with hollowed-out and underfunded defences—not my words, but those of a Tory Defence Secretary from this Dispatch Box, admitting the failures they made with our armed forces.

In our first year, Labour has boosted defence spending by over £5 billion. We are now spending more on defence this year than the previous Conservative Government spent in any year. We will hit 2.6% in 2027, 3% in the next Parliament, and 3.5% in 2035. That level of spending was not seen in any of the 14 years that the right hon. Member and his colleagues were in government. In their first five years of government, they cut defence spending by £12 billion and did long-term damage to our military. They cut the number of our warships by 25% and mine-hunting ships by half. They delayed the renewal of our nuclear deterrent. In their 14 years, they never once hit the 2.5% of GDP spending that we left them with when we were last in power. They cut troop numbers to the lowest level since Napoleon, and drove down military morale with low pay and appalling military housing.

We are working flat out to deliver the DIP, and we will publish it when it is ready. We are doing something that was never done under the Tories: we are doing a line-by-line review of defence budgets, publishing not just an equipment plan but a plan covering housing, personnel and infrastructure all in one. This is a Labour Government who are delivering for defence.

I call the Chair of the Defence Committee.

The public intervention by Lord Robertson, a former Defence Secretary and former NATO Secretary-General is sobering. For a man of his stature to make such an assessment shows the gravity of the situation. Indeed, he was the person tasked by the Government to head up the strategic defence review. His comments align with what the Defence Committee has been highlighting for several months now: we as a nation are ill-prepared to face the threats in this more volatile world. That is why the Government’s rhetoric must align with reality. We must ensure that we get to 3% of GDP spend on defence in this Parliament. We cannot afford to kick the can down the road to the next Parliament.

When the Prime Minister last appeared before the Liaison Committee, he said that the defence investment plan was on his desk and would be delivered very soon. Any further delay to the DIP would cause further damage to our defence industrial base, not to mention send the wrong signal to our allies and adversaries. Will the Minister please confirm when the defence investment plan finally be published?

My hon. Friend does a superb job on the Defence Committee, and he is right to be asking questions of defence. It is precisely because I share many of his views that we commissioned the strategic defence review in the first place. We adopted all 62 recommendations, including the recommendation to move our nation’s military to warfighting readiness, ending the hollowing-out and underfunding that we inherited from the Conservative party. That is why there is £5 billion extra in our defence budget this year already. The shadow Minister’s Government cut defence when they had their first budget, and we increased defence funding—that is the difference between our two parties.

We are not waiting for the defence investment plan. I entirely understand the seriousness with which the Defence Committee Chair raises these issues. We are announcing defence contracts—not a day goes by without me signing off on a new one. Indeed, this morning I was in Andover announcing the £879 million contract for maintenance of our Apache and Chinook helicopters with Boeing. It is a 1,200-job contract that supports our efforts to make defence an engine for growth and give our fighting forces the very best equipment they can have.

I call the Liberal Democrat spokesperson.

It seems like every day a fresh revelation about the parlous state of our military spending comes to light. After yesterday’s intervention from Lord Robertson, there are reports today that the Chancellor is unwilling to put any more than an extra £10 billion into defence over the next four years, and that the Ministry of Defence is seeking £3.5 billion in cuts. Just this morning, I met a major defence prime that outlined again how the Government’s failure to publish the defence investment plan is undermining investment in security in this country.

Unpublished plans will not keep the country safe. As Trump tears up the global order and Putin continues to brutalise Ukraine, the Government can no longer delay. Will the Minister immediately take forward Liberal Democrat plans for a £20 billion defence bonds programme, enabling a rapid cash injection into capital-intensive projects outlined in the SDR? Even the Conservative leader is now belatedly backing our call for cross-party talks, so will the Government finally stop dragging their feet and convene them as a priority, so that we can create consensus on how to reach 3% of GDP being spent on defence?

I thank the hon. Member for his questions. I was robust with the Conservatives about the record they left, but it is also worth noting that when the Liberal Democrats were last in power, they cut defence spending, despite the invasion of Ukraine by Russia in 2014. I understand his seriousness and where he is coming from, but I hope he has some humility about his record.

The hon. Member is absolutely right, though, that we need to increase defence spending, and that is exactly what we are doing. We will hit 2.5% of GDP on core defence spending in April 2027; 3% in the next Parliament; and 3.5%—the NATO standard—in 2035, but we are not waiting for the DIP to get contracts announced. Only a month ago, I announced a £1 billion helicopter deal with Leonardo in Yeovil, which will support jobs there—I recognise that sitting behind the hon. Member is the hon. Member for Yeovil (Adam Dance)—and across the supply chain. We are improving on a deal that we inherited from the Conservatives. Under that deal, there was insufficient UK content in helicopter exports, there was no security guarantee that autonomy would be based in Yeovil, and Yeovil was not a centre for helicopter exports. This is Labour delivering—and making the Lib Dem hon. Member for Yeovil quite happy in the process.

I genuinely respect my friend the shadow Minister, but seriously, defence was hollowed out in his party’s time in government. Our safety is the primary responsibility of any Government, and more must be spent on our defence. However, that should not come at the expense of pensioners and people with disabilities receiving welfare. There are always other ways, such as scrapping digital identification, looking at some of our net zero policies, and rethinking some of the fiscal rules. Will the Minister confirm that all future funding options are being seriously considered?

My hon. Friend is right that we need to increase defence spending, and that is exactly what the Government are doing. We have £5 billion extra in our budget this year, which we are using to address the hollowing out and underfunding of our armed forces that we inherited. We have used part of that to give our armed forces the biggest pay rise in 20 years. That is helping to address the below-inflation “pay rises”, if we can call them that, introduced by the Conservatives when they were in government.

I recognise the case that my hon. Friend makes about the importance of defence spending. I encourage colleagues to still make that case, because we need to increase defence spending—we are increasing it. I would welcome a national conversation about the threats we face, and how we match those threats with increased capability. Indeed, it was a recommendation of the SDR that we have that debate.

On 6 March, the Minister kindly allowed the Defence Committee into the Ministry of Defence for a secret briefing. I would obviously never refer to the information that we received in that briefing, but it is telling that later that day, the Labour-dominated Defence Committee insisted on issuing a statement saying that we should go to 3% of GDP in this Parliament. That is the Conservative party’s policy, the Liberal Democrat party’s policy, and the Defence Committee’s recommendation. Will he tell us clearly why he is resisting it?

There is a marked change in the approach that this Government are taking to the Ministry of Defence: we want to do more with the Defence Committee, bring it into decision making even more, and give it an understanding of situations, including by providing more secret briefings; they previously might not have been available in the number that we are now providing. I want to continue doing that, so I appreciate what the hon. Gentleman has to say. I recognise the case for increased defence spending; I am glad he said what he did about it, especially as the Conservatives hollowed out and underfunded our forces for 14 years. I entirely understand that he is having a change of heart about his party’s record in government, and wants to increase that spending. We will continue to increase defence spending, as we have set out.

Will my hon. Friend assure me that this Government’s increased investment in our armed forces and the defence investment plan will offer huge opportunities for the defence sector in Scotland, not least at the Methil yard in my constituency, which was saved from closure by Labour Ministers? That will build on the huge successes of the sector in Scotland, including the £10 billion deal with Norway, which secures 2,000 jobs on the Clyde for the long term.

I thank my hon. Friend for his advocacy for the Methil yard. He and I meet often to discuss that, and it is good to see the investment that Navantia is putting into it. In Scotland, we are building the Type 26 frigates in Glasgow and the Type 31 frigates in Rosyth, where I was pleased to be only a few weeks ago for the steel cut on HMS Bulldog and the roll-out of HMS Active. As a result of work that we have commissioned—the first fleet solid support ship is being built by Navantia, and I was present to see the steel cut in Appledore in North Devon at the end of last year—there is a bright future ahead for shipbuilding in Scotland. I am happy to continue my conversations with my hon. Friend about Methil.

I have every sympathy with patriotic Defence Ministers who are being sent out to try to put a brave face on the fact that they are being undermined by their own Chancellor of the Exchequer. Is it not a fact that someone as collegiate, experienced and patriotic as Lord Robertson would never have spoken out as he did if he did not recognise that his party’s Defence team was being undermined in this way? If the threat from Russia is so great that NATO has moved to 3.5% of GDP as its target, why do the Government think that waiting another nine years to achieve it is an appropriate way to deal with the killer in the Kremlin?

The right hon. Gentleman is right; we have agreed the NATO target of 3.5% on core defence and 1.5% on national security by 2035. We have agreed that—an important part of it. He will also know what the Defence Secretary revealed last week about covert Russian activities. It is precisely because we can see more threats from Russia and other adversaries, and not just against our undersea cables, that we are increasing defence spending and trying to renew our armed forces. We are dealing with the hollowing out. As a patriotic Back Bencher, he shares many of my views about the last Government’s effect on our armed forces, and their hollowing out under the Conservatives. I am very happy to continue my conversation with him about how we can make the case for further defence investment.