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Fiscal Policy Defence Spending 2025-01-27
27 January 2025
Lead MP
James Cartlidge
Debate Type
Urgent Question
Tags
DefenceEconomyTaxation
Other Contributors: 24
At a Glance
James Cartlidge raised concerns about fiscal policy defence spending 2025-01-27 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Will the Minister confirm that the UK will hit 2.5% defence spending during this Parliament, despite recent reports suggesting delays beyond 2030? Also, can the Minister address concerns about higher taxes on death in service benefits and education for armed forces families?
Slough
Question
Why have there been discussions about timelines for reaching 2.5% defence spending before the SDR is published? Why not commit to setting out a detailed plan by Easter?
Minister reply
We will publish both the strategic defence review and our path to 2.5% of GDP on defence in spring, as previously stated.
Epsom and Ewell
Question
What plans does the Minister have to reverse cuts to the British Army under previous Conservative governments? How will he address procurement inefficiencies?
Minister reply
The SDR will outline specific measures, but we commit to reversing past underinvestment in our armed forces and improving efficiency.
Derek Twigg
Lab
Widnes and Halewood
Question
Will the Minister keep this House informed on progress with the strategic defence review instead of providing information through press briefings?
Minister reply
The Defence Secretary will report to the House, and announcements about the SDR and path to 2.5% will be made in Parliament.
Lincoln Jopp
Con
Spelthorne
Question
Is it compatible with the military covenant to make compensation payments to former members of the IRA?
Minister reply
That is not within my portfolio, but I will ensure Northern Ireland Office officials respond in writing.
Fred Thomas
Lab
Plymouth Moor View
Question
What steps will the Government take to keep the British public informed about increasing defence spending and responding to Russian threats?
Minister reply
We declassified information on Yantar activities and surfaced a submarine as deterrence. We will continue to make cases for our formidable capabilities and investments in the SDR.
Calvin Bailey
Lab
Leyton and Wanstead
Question
Does the Minister agree that it takes a Labour Government to deliver spending commitments on defence?
Minister reply
The last time this country spent 2.5% of GDP on defence was under a Labour Government, acknowledging past Conservative cuts.
Julian Lewis
Con
New Forest East
Question
Can the Minister acknowledge that previous Conservative Governments have achieved higher percentages in defence spending?
Minister reply
The review will set out necessary expenditure based on threat environment, without arbitrary constraints.
Tonia Antoniazzi
Lab
Gower
Question
Does the Minister agree that today is a reminder of the need to protect our values and freedoms?
Minister reply
Holocaust Memorial Day underlines the importance of unity against hate and supporting strong defence.
Bernard Jenkin
Con
Harwich and North Essex
Question
Will the strategic defence review be free from spending constraints?
Minister reply
The review will set out necessary expenditure based on threat environment, to be published in spring.
Luke Akehurst
Lab
North Durham
Question
What is the Government doing to improve defence procurement following inherited issues?
Minister reply
We are addressing broken procurement by creating a new national armaments director and supporting British companies through a new defence industrial strategy.
Dave Doogan
SNP
Angus and Perthshire Glens
Question
Who will be the final arbiter in determining when 2.5% is realised?
Minister reply
The path to achieving 2.5% will be set out in spring, addressing concerns around the Treasury's role.
Jacob Collier
Lab
Burton and Uttoxeter
Question
Does the Minister agree that investment in defence supports national security and economic growth?
Minister reply
The £9 billion investment in Rolls-Royce is vital for nuclear future, job creation, and supporting supply chain.
Wendy Morton
Con
Aldridge-Brownhills
Question
How does inheritance tax on death-in-service payments align with the armed forces covenant?
Minister reply
Inheritance tax does not apply to those dying on active service; other areas are subject to Treasury consultation.
Jonathan Brash
Lab
Hartlepool
Question
Is it true that the previous Government reduced military personnel, and do we need to reverse this trend?
Minister reply
The strategic defence review will set out necessary capabilities to meet threats, improving spending efficiency.
Mark Pritchard
Con
The Wrekin
Question
Can the Minister provide a specific date for when 2.5% of GDP on defence will be announced?
Minister reply
Strategic defence review and pathway to 2.5% will both be published in spring this year.
Dan Carden
Lab
Liverpool Walton
Question
Does increased defence spending build strong alliances with the US?
Minister reply
Spending more on defence, as announced in Budget, aligns with maintaining good relationships with the US.
Llinos Medi
PC
Ynys Môn
Question
A trained and skilled workforce is central to a successful defence policy. Can I ask the Secretary of State to ensure that any increase in defence spending includes significant investment in training and apprenticeships?
Minister reply
The Minister acknowledged the importance of skills training, mentioning his constituency's Babcock premises as an example. He committed to ensuring investments not only for armed forces personnel but also civilians supporting them across the supply chain.
Josh Simons
Lab
Makerfield
Question
I am a strong supporter of making sure that we reach 2.5% of GDP on defence. However, may I remind Conservative Members that one of the first things this Government did was to scrap a £40 million contract with a helicopter company that transported Conservative Ministers around the country? Does the Minister agree that that will help ensure our defence spending goes towards defending the nation?
Minister reply
The Minister responded by highlighting the larger pay rise for recruits and new direct entry into cyber programmes under the current Government. He also mentioned his personal experience with helicopter services during his tenure as Shadow Defence Secretary.
Dorking and Horley
Question
I would like to see slightly more humility from all political parties on the subject of defence spending. The Minister is right that defence spending was cut under the coalition, but we are in a different world now, with a great power attacking Europe.
Minister reply
The Minister agreed that a cross-party-backed strategic defence review (SDR) is essential for securing our nation’s safety. He outlined his plans to publish the SDR and the 2.5% pathway in the spring.
Louie French
Con
Old Bexley and Sidcup
Question
Can I ask him whether he agrees that giving away the Chagos islands, and paying to do so, is a bad deal, and that that money would be better spent on investing in our armed forces?
Minister reply
The Minister clarified that the deal for securing the long-term future of the UK-US base on Diego Garcia began under his predecessor's government. He assured the House that the strategic importance of this base justifies the financial investment.
Bradley Thomas
Con
Bromsgrove
Question
Which comes first, the strategic and operational needs of our armed forces or fiscal parameters set by Treasury bureaucrats?
Minister reply
The Minister stated that the SDR will address changing warfare threats and capabilities. He argued for a shift from old procurement methods to more efficient practices.
Andrew Snowden
Con
Fylde
Question
Given the significant increases in costs following the Chancellor’s Budget, squeezing payroll costs of private sector companies supporting our armed forces, will we be able to buy considerably less kit for 2.5% at the end of the defence review?
Minister reply
The Minister acknowledged the impact on private sector businesses and promised improvements in procurement methods through the SDR and a new defence industrial strategy.
Jim Shannon
DUP
Strangford
Question
I ask him very respectfully whether he agrees that the story in the press this week about the proposed sale of Navy ships to Brazil, when our fleet already appears depleted, is worrying? Will the Minister reassure this House that the decisions made have been future-proofed with our security in mind?
Minister reply
The Minister confirmed the Prime Minister’s decision to commission a strategic defence review within two weeks of taking office. He highlighted the importance of retiring old capabilities and increasing overall defence spending.
Government Response
The Government's commitment to spending 2.5% of GDP on defence is cast-iron, with plans set out in the spring Budget. We will increase defence spending by £3 billion and have already begun to address retention issues and living conditions for service personnel. Inheritance tax on death benefits applies only to non-service deaths, and we have uplifted CEA support to 90% for private education costs. The strategic defence review (SDR) will outline the path to achieving 2.5% in spring.
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