Defence Spending: 2.5% of GDP

The Government are delivering for defence by increasing defence spending. There is already £3 billion extra for next year, and a commitment to setting a path to spend 2.5% of GDP on defence in the spring.

It is all very well spending 2.5% of GDP on defence, but we have to spend it on the right kit. Over the weekend I noted a story about our NATO allies being frustrated with Britain for not investing in appropriate missile defence systems. As the Secretary of State meets his 2.5% commitment, will he commit to investing in surface-to-air missiles, precision and hypersonic missile systems, DragonFire laser systems and counter-drone blocking technology to ensure that the British Army is the most advanced and able in the western world?

The UK has for many years been one of the highest spenders on defence in NATO. We continue to hold that proud record. Increasing spending this year will mean that Britain continues to be one of the highest spenders in NATO. I remind the hon. Gentleman that the last time this country spent 2.5% on defence was in 2010 under the previous Labour Government—a level of defence spending that was not matched once during the 14 years in which his party was in government.

We come to the Chair of the Defence Committee.

On defence spending, I am glad that UK-based defence firms will be prioritised for Government investment under the defence industrial strategy, which should boost British jobs in constituencies such as Slough and help to strengthen national security, but major defence programmes are currently in disarray, with only two out of 49 on time and on budget. What actions are the Government taking to fix the waste and mismanagement in the system?

My hon. Friend is right. Everyone agrees that more needs to be spent on defence to meet the increasing threats. He asks why only two out of 49 of the major defence projects are on time and on budget. That question may best be directed at the shadow Defence Secretary, the hon. Member for South Suffolk (James Cartlidge), who was responsible for exactly that up until the election six months ago. There is of course a question about how much we spend, but there is also a challenge in how well we spend it. The shadow Armed Forces Minister, the right hon. Member for Rayleigh and Wickford (Mr Francois), was one of the strongest critics of the previous Government and of what he described as the “broken” procurement system. We are getting a grip of MOD budgets, driving deep reform in defence and ensuring that we reduce the waste and delay in procurement contracts.

I call the shadow Secretary of State.

I congratulate the Minister for Veterans and People, the hon. and gallant Member for Birmingham Selly Oak (Al Carns), on receiving a distinguished service order—we are all proud of him. The Government have tied the announcement of their timetable for 2.5% to the publication of the strategic defence review, so we need it to be published as soon as possible. Will the Secretary of State clarify why he has pushed back the SDR’s publication in Parliament from the spring to the summer?

I have not done that. The work of the reviewers leading the strategic defence review is thorough and flat out. The review has been widely contributed to and is the first of its kind in this country, allowing fresh thinking in defence planning. On the 2.5% commitment, as we said in the plan for change, we will set out a path to spending 2.5% of GDP on defence in the spring. The Government are delivering on defence and defence reform; we will deliver on defence funding, too.

The Secretary of State says that publication has not been pushed back, but I remind the House that at the previous Defence questions on 18 November last year, the Secretary of State was asked specifically about SDR timing and said: “The reviewers will report in the spring.”—[Official Report, 18 November 2024; Vol. 757, c. 4.] However, in a written answer to me on 17 December—just before the House rose—a Defence Minister said: “The Reviewers will make their final report to the Prime Minister, Chancellor of the Exchequer and Defence Secretary in the first half of 2025. The Secretary of State for Defence will subsequently report the Strategic Defence Review to Parliament.” If the first part is in the first six months of the year, even I can see that the second part, which is subsequent to that, will happen in the second half of the year. That is not the spring, is it?

We are dancing on the head of a pin here—the spring is in the first half of the year. I think the hon. Gentleman should take my words to this House and to him, which have been consistent that the strategic defence review will report in the spring. It will report directly to the Prime Minister, to the Chancellor and to me, and I will update the House directly. We will also set out our clear path to spending 2.5% of GDP on defence in the spring.