On behalf of us all, I wish our UK team in Canada good luck for the Invictus games. This week, I will have the privilege of chairing the 50-nation Ukraine defence contact group. I will also attend the meeting of NATO Defence Ministers, and then the Munich security conference.
Mr Speaker, 2025 is the critical year for the war in Ukraine. The world is watching, and it is imperative that all allies step up their support. I am proud of the UK’s continued unity and leadership on Ukraine. This year, the UK will provide £4.5 billion in military aid—more than ever before. Our commitment is absolute. We will strengthen Ukraine on the battlefield and at any negotiating table. I am grateful to continue to have the support of both sides of the House. Together, we will stand with the people of Ukraine for as long as it takes.
US navy officials have reported increased Russian and Chinese patrols in the High North. Last week, the Danish navy announced plans to acquire three new Arctic patrol ships, and March will see one of the largest Exercise Joint Viking operations in NATO’s history. With these concerns in mind, will the Secretary of State confirm which UK assets will be involved in Joint Viking this year? What plans does he have to update the 2022 policy paper on the UK’s defence contribution in the High North?
My hon. Friend is right about the High North. We will continue to maintain a strong defence profile and posture. Both the Royal Navy and the Royal Fleet Auxiliary will be taking part in Exercise Joint Viking.
Surely, one of the most important lessons from the war in Ukraine for our own military base is the urgent need to fire up the defence industry and increase its capacity. However, today we learned from ADS that British defence manufacturers will be hit with a £600 million tax rise this Parliament from higher national insurance. Why are the Government prioritising higher taxes on defence instead of higher defence spending?
On the contrary, we are backing British industry. We are looking for firms that can design, invent and make in Britain—a big change from the industrial policy under the previous Government. I was in Derby recently to announce an eight-year contract for Rolls-Royce that will support more than 1,000 apprentices—200 each year—and thousands of small businesses in supply chains across the country.
I know all about the Unity deal because, as the Minister for Defence Procurement and Industry said, I negotiated it. This is extraordinary complacency on tax from the Secretary of State. The Government are taxing not just the defence industry but the education of defence people’s children and death-in-service payments. The fact is that the Defence Secretary is under “a tax” from all sides. The question is: is that how the Government will pay for their Chagos deal?
We stepped up and accelerated the negotiations to conclude the Rolls-Royce contract, and I was able to announce it the other week to apprentices and management at Rolls-Royce. We are putting nearly £3 billion extra into defence this year. We recognise, as everyone does, that we must increase defence spending. We will return UK defence spending to a level that we have not seen since Labour was last in government in 2010, directing it first and foremost to British industry.
T2. This week is National Apprenticeship Week. I know from my constituents that apprenticeships are a vital and successful route into the workplace. Will the Minister join me in welcoming the 26,000 apprenticeships in the defence sector across the country? Will the Government continue to build the right skills and workforce of the future through apprenticeships?
I am very happy to acknowledge my hon. Friend’s point. I met many apprentices late last week at the launch of National Apprenticeship Week. Whichever factory I visit, I meet apprentices—young men and women—who are thrilled by the opportunities that a career in defence gives them. They all have smiles on their faces and futures in front of them. It is great that National Apprenticeship Week highlights all that.
T5. We pressed the Government to extend continuity of education allowances to 100% for service families. We were told that there would be no exemptions from the depredations of the decision to impose VAT on school fees, but it turns out that the children of American servicemen and women are exempt. Would it not be fair to extend that exemption to the men and women who serve our country?
There is a long-standing deal with other nations on the welfare of families and so on. This Government are supporting our armed forces community. We will pay 90% through the CEA. We have given service personnel the biggest pay rise, and we are addressing the recruitment and retention crisis that we were left with.
T3. The Government are rightly proud of the men and women who work in our defence industry. Will the Minister join me in encouraging excellent universities such as Keele University in Newcastle-under-Lyme to work with our defence sector to create good jobs for local people, boost skills and safeguard our national security?
I am more than happy to join my hon. Friend in making those points. He is right that we must fully support defence companies and their personnel, and we must ensure that universities such as Keele, and all others across the further and higher education sectors, welcome defence firms at their careers fairs.
T7. Do the Secretary of State, his officials and his chiefs have a plan to implement the additional resource from 2.5% of GDP when it arrives? If they do not, we will be faced with lengthy delays while procurement plans are put in place. Is this a case of ministerial prevarication, or is there a serious plan? If 2.5% arrives but there are no plans for procurement ready to hit the ground running, we will actually be no further forward than we were at 2%.
T4. I thank the Veterans Minister for recently visiting Redditch for a roundtable, where he heard from veterans about the excellent work by the Redditch armed forces and veterans breakfast club in bringing together the community and signposting critical support. Does he agree it is vital that the Government continue to work with such organisations to ensure that no veteran misses out on the support they deserve?
I thank my hon. Friend for his question. The visit to Redditch was truly enlightening; the charitable sector there is doing amazing work to support veterans in his constituency. I fully champion the breakfast clubs they are putting on.
T8. The United Kingdom has a strong defence industry worth £36 billion in exports, which is important to companies in my constituency, such as Collins Aerospace, Amentum and Chess Dynamics. The Government’s commitment to strengthening UK-EU relations is especially welcome in this sector. What steps is the Department taking to boost exports with our EU and NATO allies?