Defence Funding

Oral Answers to Questions — Defence – in the House of Commons at 12:00 am on 23 October 2017.

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Photo of Stephen Morgan Stephen Morgan Labour, Portsmouth South 12:00, 23 October 2017

What recent discussions he has had with the Chancellor of the exchequer on the adequacy of defence funding.

Photo of Michael Fallon Michael Fallon The Secretary of State for Defence

I have regular discussions with the Chancellor. The Government are committed to spending at least 2% of GDP on defence and to growing the defence budget by at least 0.5% above inflation every year of this Parliament. The defence budget will therefore rise from £36 billion this year to almost £40 billion by 2020-21.

Photo of Stephen Morgan Stephen Morgan Labour, Portsmouth South

Does the Secretary of State agree that the inadequacy of current funding and the uncertainty around long-term investments that that generates has had an impact on the security of jobs at BAE Systems, including in my Constituency?

Photo of Michael Fallon Michael Fallon The Secretary of State for Defence

If Opposition Members were really concerned about jobs at BAE Systems, they would get behind our export campaigns for Typhoon and Hawk aircraft, rather than undermining them by criticising potential customers. When I saw the chairman of BAE Systems last week, I reassured him that we wanted to continue to work with the company. I have emphasised the importance of keeping production lines open, should new orders for Typhoons and Hawks materialise, and of staying on track in developing RAF Marham for the arrival of the F-35.

Photo of Julian Lewis Julian Lewis Chair, Defence Committee, Chair, Defence Committee

Does the Secretary of State recall that several years after we took the peace dividend, in the mid-1990s, we were still spending 3% of GDP on defence? Will he assure us that no inadequacy in the defence budget will lead to the loss of HMS Albion and HMS Bulwark, which are scheduled to leave service in 2033 and 2034, as the defence procurement Minister, my hon. Friend Harriett Baldwin, wrote to the Defence Committee to say only in January?

Photo of Michael Fallon Michael Fallon The Secretary of State for Defence

On the latter point, I have referred to the purpose of the capabilities review, which is simply to make sure that the equipment programme that we set out in 2015 is on track and is spending our money in the best possible way to deal with the threats, which have intensified since then. On the first point, about finance, the defence budget was £34 billion when I became Defence Secretary. It is £36 billion today and it will reach £40 billion by 2020.

Photo of Nia Griffith Nia Griffith Shadow Secretary of State for Defence

We have heard that a Tory rebellion is growing over next month’s Budget, with half the Cabinet determined to sack the Chancellor because they are convinced that they can do a better job themselves. There is even speculation that the loyal Defence Secretary might be about to launch his own offensive on No. 11.

On a more serious matter, most of the Tory manifesto has already bitten the dust, so I was pleased that the Secretary of State seemed to be very confident about the commitment to a 0.5% year-on-year increase in defence spending. Will he give us a categorical assurance that there will be no fiddling of the figures, as we have seen with the NATO commitment on spending 2% of GDP?

Photo of Michael Fallon Michael Fallon The Secretary of State for Defence

I am not sure whether the hon. Lady’s first point was a reference to speculation or scaremongering, but it is good to hear from her after she was gagged at the Labour party conference and not given any kind of speaking slot.

I can reassure the hon. Lady that our manifesto commitment to increasing the defence budget by at least 0.5% ahead of inflation is an absolute commitment and that we will stand by it. As for what is classified as 2% spending for the purposes of the NATO return, that is entirely a matter for NATO to decide.

Photo of Nia Griffith Nia Griffith Shadow Secretary of State for Defence

The reality is that the Government’s chaotic mismanagement has led to gaping holes in the MOD’s budget. As we have heard, there is real concern about cuts to our amphibious capabilities. Will the Secretary of State say categorically that there will be absolutely no cuts to the Royal Marines?

Photo of Michael Fallon Michael Fallon The Secretary of State for Defence

The Royal Marines are part of the Royal Navy. With the latest Astute submarine, Audacious, launching back in the spring, the steel cut in July on HMS Glasgow, the first of our new frigates, the sailing of HMS Queen Elizabeth, and the naming of HMS Prince of Wales, HMS Forth and HMS Medway, nobody should be in any doubt that this year has seen the Royal Navy growing in power and numbers.

Photo of Thomas Tugendhat Thomas Tugendhat Chair, Foreign Affairs Committee, Chair, Foreign Affairs Committee, Chair, Foreign Affairs Committee

We hear discussion of defence budgets, but would it not be worth our also focusing on what the armed forces achieve for the United Kingdom? Through their soft influence, ships visits and training establishments, are they not fundamentally part of our foreign policy and integrated defence?

Photo of Michael Fallon Michael Fallon The Secretary of State for Defence

Absolutely, and smart and soft power are as important to us as hard power, which is why it is the Government’s ambition to continue to grow the defence budget, and the power and impact of our forces.

Chancellor of the Exchequer

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.

Chancellor

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.

Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.

constituency

In a general election, each Constituency chooses an MP to represent them. MPs have a responsibility to represnt the views of the Constituency in the House of Commons. There are 650 Constituencies, and thus 650 MPs. A citizen of a Constituency is known as a Constituent

Opposition

The Opposition are the political parties in the House of Commons other than the largest or Government party. They are called the Opposition because they sit on the benches opposite the Government in the House of Commons Chamber. The largest of the Opposition parties is known as Her Majesty's Opposition. The role of the Official Opposition is to question and scrutinise the work of Government. The Opposition often votes against the Government. In a sense the Official Opposition is the "Government in waiting".

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

Cabinet

The cabinet is the group of twenty or so (and no more than 22) senior government ministers who are responsible for running the departments of state and deciding government policy.

It is chaired by the prime minister.

The cabinet is bound by collective responsibility, which means that all its members must abide by and defend the decisions it takes, despite any private doubts that they might have.

Cabinet ministers are appointed by the prime minister and chosen from MPs or peers of the governing party.

However, during periods of national emergency, or when no single party gains a large enough majority to govern alone, coalition governments have been formed with cabinets containing members from more than one political party.

War cabinets have sometimes been formed with a much smaller membership than the full cabinet.

From time to time the prime minister will reorganise the cabinet in order to bring in new members, or to move existing members around. This reorganisation is known as a cabinet re-shuffle.

The cabinet normally meets once a week in the cabinet room at Downing Street.

Tory

The political party system in the English-speaking world evolved in the 17th century, during the fight over the ascension of James the Second to the Throne. James was a Catholic and a Stuart. Those who argued for Parliamentary supremacy were called Whigs, after a Scottish word whiggamore, meaning "horse-driver," applied to Protestant rebels. It was meant as an insult.

They were opposed by Tories, from the Irish word toraidhe (literally, "pursuer," but commonly applied to highwaymen and cow thieves). It was used — obviously derisively — to refer to those who supported the Crown.

By the mid 1700s, the words Tory and Whig were commonly used to describe two political groupings. Tories supported the Church of England, the Crown, and the country gentry, while Whigs supported the rights of religious dissent and the rising industrial bourgeoisie. In the 19th century, Whigs became Liberals; Tories became Conservatives.