National Defence
Issuing defence bonds to help restore Britain's military
“I congratulate my hon. and gallant Friend the Member for Tunbridge Wells (Mike Martin) on securing this extremely valuable debate. Much has been said about rearmament and defence in this House in recent months. It is widely accepted that successive Governments have allowed our nation’s defences to decline to a perilous extent. This debate should therefore be an opportunity for the House to come together to address the first duty of any Government, the defence of the realm. It is a conversation that cannot be limited only to this building; it needs to be had in every corner of our great nation. The Prime Minister and others tell us that the point of maximum threat from Russia is in 2030. That is just over three years away. If that is the case, we must show urgency and clarity. It is for that reason that the long delay in the publication of the defence investment plan was so serious and so damaging. That delay cost us precious time, which our adversaries have spent building their own forces and probing our vulnerabilities. The Public Accounts Committee has already told us what that delay cost us. It called the resulting bureaucratic drift damaging to Britain’s international credibility and warned that it has created deep uncertainty across our defence industrial base while sending a weak signal to allies and adversaries alike. When the plan finally arrived, what did we find? The Secretary of State told the House that he had secured an extra £1 billion, yet it has come to light since then that most of that money has simply been taken from cancelled transport and energy projects or clawed back from funds that were meant to improve military housing. Worse still, £4.7 billion of the £15 billion promised increase is, in the Government’s own words, still to be “confirmed at the Budget”. That, I am afraid, is not a funding plan. Defence chiefs have been explicit that anything below £28 billion would leave this country vulnerable and force Ministers into hard choices about capabilities that we simply cannot afford to lose. The figure the Prime Minister has now settled on falls well short of that warning. Nowhere is that more alarming than in air defence. The strategic defence review recommended that we spend at least £1 billion in this area. The people of this country rightly assume that they are safe from missile and drone attack. We must urgently work with our NATO allies to build up our collective integrated air defence. It is folly to spend billions on equipment if it can all just be destroyed in an instant by Russian ballistic missiles. The SDR was also clear that we needed pace in investing in the capabilities needed to deter Russia. That is why the Liberal Democrats have argued for issuing defence bonds to make £20 billion available in the next two years—before 2030—to spend on plugging those gaps. We have also urged the Government to explore multilateral efforts to fund rearmament, such as the defence, security and resilience bank or leading on the establishment of a European rearmament bank. The threat is real and the money is needed now, not years down the line, and we need to spend not only more, but better. Around 5% of the defence procurement budget currently reaches SMEs and 42% of contracts remain concentrated among the same 10 suppliers. These smaller firms are the source of much of the flexibility and innovation the sector needs, and they support skilled jobs in every part of the United Kingdom. The long delay to the DIP left them in limbo for over a year. Some went out of business in that time or even moved overseas, and with the £4.7 billion gap still to be resolved at the Budget, uncertainty has not been lifted from their shoulders. To make their funding numbers add up, the Government have also started chipping away at their previous commitment to fix mouldy military homes and crumbling barracks. The Liberal Democrats have supported the Government’s efforts to sort out that mess, so to hear that hundreds of millions have been trimmed is bitterly disappointing. The Liberal Democrats changed the law so that service family accommodation must now be assessed against the decent homes standard—we forced the Government to concede that principle in the House of Lords. We went further still, and sought to extend that same standard to single living accommodation, so that no member of our armed forces is left living in substandard conditions, but the Government voted that down in Committee. If Ministers are serious about retention and persuading talented people to stay in uniform, they must reverse that decision and bring all military housing under a single, decent standard. They must also stop backsliding on their commitment to fully fund the recovery of our military housing stock. We cannot meet this moment alone. Our security is bound up with that of our European neighbours, because geography has not changed, even if American commitment is growing less certain. The Liberal Democrats want the Government to show real ambition to restart negotiations for Britain to join the Security Action for Europe programme, to work with partners towards a European rearmament bank, and to help build a European security council that can co-ordinate our allies’ efforts to meet NATO’s requirements, even as Washington draws back. Our alliances are one of our greatest strengths, and should the worst ever happen, we are far stronger standing with our friends than on our own. That is why squandering soft power through cuts to international development aid and the Foreign, Commonwealth and Development Office are an entirely false economy. Those cuts diminish our standing in the world and create issues for which we will have to pay far more down the line. It is always cheaper to prevent a war than to fight one, which is why our hard and soft power must go hand in hand. I will end where I started: it is time that the Government and the new Prime Minister, when he takes office, lead a serious national conversation with the public. We hear endless rhetoric about tough choices, and those will not get any easier without public support. The parties represented in this Chamber will come up with different answers to the question—we can debate that here—but every party will find it harder to justify those choices unless they are part of a real national conversation on defence, and that conversation is simply not happening right now. Just this week, the United States warned of a possible imminent attack by Russian forces on Poland to test NATO defences. The threat is not abstract; the threat is real, and it is to the safety of our children and our nation’s future. I urge Ministers and the incoming Prime Minister to be decisive, issue defence bonds, take the conversation on defence out into the real world, and show the urgency that the moment deserves before it is too late.”
