I remind the House of my role as deputy chairman of the Defence Growth Partnership. I, too, look forward, as other Members have said, to the integrated review, but I also look
forward to the defence and security industrial strategy. I congratulate the Secretary of State on securing a multi-year settlement outwith the one-year spending review, providing a £16 billion increase in defence spending over the next four years. As was made crystal clear in the recent National Audit Office report, the continuing material gap in the affordability of the equipment programme has to be grasped. Allocating adequate capital and then avoiding repeated delays through stop-start decisions to programmes will improve both cost and the delivery schedule.
I make four quick points on judging the integrated review. The first is whether the increased resources are sufficient to match the Government’s policy ambition to develop the required capacity and capability to maintain credible and effective force structures. The second is whether the review recognises the value of an defence industrial base with sufficient resilience, innovation and sustainable capacity to supply our armed forces with the superior capability that they need, now and in the future. That requires a careful combination of competition and collaboration with industry, providing greater visibility to contractors of potential defence capability requirements. It also requires identifying the contribution of defence and security to the UK economy, as I recommended a few years ago; I am pleased that that is now being stood up through the joint economic data hub, which will help to demonstrate how defence can contribute to prosperity and the Government’s levelling-up agenda.
Thirdly, in the post-Brexit era the integrated review provides the opportunity to show global Britain taking a leadership role in international capability programmes. Developing export potential for UK defence capabilities by establishing joint requirements with our allies is essential to ensure that our armed forces are at the forefront of innovation, but also encourages industry to co-invest in developing new capabilities. Securing international support for export programmes will require increased co-operation between Government Departments here at home and the simplifying of Government-to-Government engagement overseas.
Fourthly, I shall be looking for continued investment in innovation—something I championed when in post. All too often, the innovation budget has fallen victim to the annual salami-slice of cutting current programmes to fit departmental spending into the annual budget envelope. That is no way to build confidence with the user community in the armed forces, nor with the potential new suppliers who will come from the technology innovators of the wider commercial world beyond defence, as war-fighting moves into the digital, cyber and space domains.
I urge the Government to use the integrated review to match capability with ambition and support the UK’s defence enterprise base, to develop world-leading capability and to build on its important contribution to the prosperity of our country and the credibility of our armed forces.
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