Strategic Defence Review

The strategic defence review is the first of its kind in the UK. It is externally led and draws widely on experts within Government and the military, as well as those from industry, academia and our allies. The reviewers will report in the spring.

With the increasing threats we see around the world, the Government are entitled to conduct a strategic defence review, but that should not be an excuse not to commit to increasing defence spending. Given that the Secretary of State refused to provide a timetable at last week’s urgent question, will he now say yes or no to whether the Government will get to 2.5% of GDP on defence spending by the end of this Parliament?

Everyone agrees that defence spending must rise. Under this Government, it is increasing by nearly £3 billion next year, and there is a cast-iron commitment that we will set a clear path to spending 2.5% of GDP on defence. Of course, the last time this country spent 2.5% of GDP on defence was in 2010 with a Labour Government.

Deciding to defer or to review is just as much of a decision as one to go ahead or not to go ahead, because it means that nothing is happening. The Typhoon factory at Warton is currently idle—no Typhoons are being produced—which is bad for exports and bad for our defence. Can the Secretary of State tell the House when we will take a decision to procure more Typhoons? There are 25,000 jobs at risk, as well as the country’s defence.

I have had the privilege of visiting Warton, and I have seen the skills, the technology and the workforce’s commitment and dedication to that job. The reviewers of the strategic defence review will produce their final report and make recommendations in the spring. In the meantime, my hon. Friend rightly points to exports. It may interest him to know that, last week, I was in Turkey and Saudi Arabia to discuss with Defence Ministers the future role that UK-made Typhoons could play in the defence of both countries.

Further to the question raised by my hon. Friend the Member for Farnham and Bordon (Gregory Stafford), I welcome the £2.9 billion of extra defence expenditure from next year. However, not only do we not have a timetable for meeting 2.5% of GDP, which the whole House would like to hear about; will the Secretary of State confirm that there will be no additional funding for the in-year pressures that this Department, alongside so many others, is suffering from?

The Chancellor set out in her Budget on 30 October the steps we are taking, across Government, to deal with the £22 billion in-year deficit that this Government inherited. On the commitment to 2.5% of GDP, the Chief Secretary to the Treasury has made it clear that we will set that path in the spring. I remind the House that the Prime Minister said at the NATO summit in Washington, back in July, that it was a question of the strategic defence review first, then the commitment and the path to 2.5%.

My constituency is home to many small and medium-sized enterprises that contribute to our UK defence sector. What steps are the Government taking to ensure that submissions from SMEs to the strategic defence review are given equal weighting and consideration compared with submissions from prime contractors, in order to support innovation, job creation and competition within the UK defence sector?

My hon. Friend is absolutely right. The shadow Defence Secretary will recognise the role that small, medium and growing companies can play in our defence and security sector better than anyone else in the House. That is one reason why, within days of getting this job, I did not just meet the big, leading defence companies; I had a similar meeting and briefing on the approach this Government will take with small and medium-sized companies, including growing companies, in the defence sector. Such companies will be an important focus for the strategic defence review, as the reforms and the long-term industrial strategy required to deliver stronger defences for this country are considered.