Commons Sense

House of Commons · Urgent Question

Fiscal Policy Defence Spending 2025-01-27

27 January 2025 · 24 other contributors

Opened by James Cartlidge Con South Suffolk

Summarised by AI from the official record, so it can contain mistakes.

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.

Key points

  • UK Government committed to spending 2.5% of GDP on defence, with plans detailed in the spring Budget.
  • Government will increase defence spending by 3 billion.
  • Strategic defence review will outline the path to achieving 2.5% defence spending in the spring.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

James Cartlidge Con South Suffolk

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?

Other contributors (24)
  • 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.

  • Helen Maguire LD 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.

  • Chris Coghlan LD 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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