It is a pleasure to follow the right hon. Member for Islington North (Jeremy Corbyn). In 20 years, we have not agreed on very much, but I was born in his constituency in Crouch End.
I want to make two principal points about the integrated review. The first is about Ministry of Defence procurement, which has frankly become a basket case. The National Audit Office and the Public Accounts Committee have produced numerous reports in recent years outlining the chronic failures in the MOD’s procurement function. One recent NAO report highlighted that of the 32 major projects managed by Defence Equipment and Support, only five are running to schedule, and many, as well as
being late, are also running considerably over budget. The latest NAO report on the equipment plan, published on 12 January, confirms yet again that the plan is unaffordable within the MOD’s budget, and that the affordability gap is widening.
One procurement after another is now in serious trouble. The Ajax recce vehicle, Astute submarines, the Crowsnest airborne early warning platform, the Challenger 2 upgrade, the Warrior capability sustainment programme —the list goes on and on, and yet nothing ever really changes. The procurement bureaucracy ploughs on regardless like a giant super-tanker, but one that is probably 40% over budget and five years late.
The increase of the defence budget by £4 billion a year over four years—a roughly 10% increase—is very welcome indeed. Nevertheless, unless we can seriously reform procurement, it will be the equivalent of simply handing large wodges of cash to a chronic alcoholic. About 40% of the entire defence budget is now spent on equipment, including support, yet DE&S at Abbey Wood is persistently incapable of managing its contractors properly and efficiently. If we cannot grasp that nettle once and for all in this review, the whole exercise will have been largely a complete waste of time.
Secondly, if because we cannot cut the Gordian knot of defence procurement, we look for savings elsewhere by slashing the Regular Army, that will only compound the error, as the deputy Chairman of the Committee, the right hon. Member for Warley (John Spellar), made so plain. There is really little point in Ministers promulgating the concept of global Britain and punching above our weight on the world stage if at the same time we are reducing our Regular Army to 72,000 and discarding some of the best line infantry battalions in the world as a result.
The new Biden Administration are already very worried about that, and from what I hear privately they have a perfect right to be. This is now a very live issue—75,000 versus 72,000. I understand that no final decisions have yet been taken, so I appeal to Ministers to draw back before it is too late and reject the 72,000 proposal while there is still time.
As Kipling famously reminded us:
“For it’s Tommy this, an’ Tommy that, an’ ‘Chuck him out, the brute!’
But it’s ‘Saviour of ’is country’ when the guns begin to shoot”.
Let us not destroy some of the finest line infantry in the world simply because we lack the moral courage to fundamentally reform the way we buy their kit.
6.38 pm