Oral Answers to Questions — Defence – in the House of Commons at 12:00 am on 13 March 2017.
Nick Smith
Opposition Whip (Commons)
12:00,
13 March 2017
What recent discussions he has had with the Chancellor of the exchequer on the level of funding for his Department.
Michael Fallon
The Secretary of State for Defence
I have regular discussions with the Chancellor. The 2015 spending review set out spending plans for the remainder of this Parliament. The Chancellor confirmed last Wednesday that the Government are committed to growing the defence budget at 0.5% above inflation each year until 2020-21. We also have access to the joint security fund. With these commitments, the defence budget will rise from £35 billion this year to almost £40 billion by the end of this Parliament.
Nick Smith
Opposition Whip (Commons)
Why does the Government’s defence spending return to NATO include more than £1 billion of war and civilian pensions? These do not contribute to our defence and were not included under a Labour Government. Concern over these accounting tricks undermines confidence in our defence spending targets.
Michael Fallon
The Secretary of State for Defence
The return we make to NATO captures all the spending that falls to the defence budget, and it is for NATO to decide whether that return is properly completed. Indeed, a Committee of this House found that the
“accounting criteria fall firmly within existing NATO guidelines.”
The chancellor of the exchequer is the government's chief financial minister and as such is responsible for raising government revenue through taxation or borrowing and for controlling overall government spending.
The chancellor's plans for the economy are delivered to the House of Commons every year in the Budget speech.
The chancellor is the most senior figure at the Treasury, even though the prime minister holds an additional title of 'First Lord of the Treasury'. He normally resides at Number 11 Downing Street.
The Chancellor - also known as "Chancellor of the Exchequer" is responsible as a Minister for the treasury, and for the country's economy. For Example, the Chancellor set taxes and tax rates. The Chancellor is the only MP allowed to drink Alcohol in the House of Commons; s/he is permitted an alcoholic drink while delivering the budget.
