Defence of realm 'safe in our hands', insists minister as MPs warn of '£29 billion' funding blackhole

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A minister insisted the “defence of the realm is safe in our hands” after senior MPs warned of a blackhole of up to £29 billion in funding for Britain’s armed forces.

Treasury minister Gareth Davies was grilled on LBC Radio after the influential Commons public accounts committee raised the alarm over the scale of money for Britain’s army, navy and air force in the face of growing global threats from Vladimir Putin’s Ukraine war, China and other parts of the world.

The MPs concluded that the Ministry of Defence has no credible plan to fund the armed forces the Government wants, leaving the UK increasingly reliant on its allies.

The gap between the MoD’s budget and the cost of the UK’s desired military capabilities has ballooned to £16.9 billion, its largest deficit ever, despite an injection of £46.3 billion over the next ten years, they added.

The PAC also warned that the real deficit could be closer to £29 billion as some parts of the armed forces only included capabilities that were affordable rather than all those the Government had requested.

Some Tory MPs were also disappointed that Chancellor Jeremy Hunt did not announce a further boost to defence spending in the Budget, whose flagship measure was instead a £10 billion cut to National Insurance.

Pressed on cuts to the size of the army, the number of RAF planes and problems hitting the naval fleet including aircraft carriers, Mr Davies told LBC Radio: “I’m absolutely saying that the defence of the realm is safe in our hands as we have demonstrated over many years not least because we have record funding going in but because the nature of conflict has changed we are investing in new technology.

“We uplifted defence spending by some £11 billion at the last spring Budget. There is about £50 billion being spent this year.

“If you look at the programme of investment, we have got new submarines, new frigates.”

Millions are also being spent on drones, artificial intelligence and other developing warfare equipment.

But Dame Meg Hillier, chairwoman of the cross-party PAC, told Sky News: “We look every year at the ten-year equipment plan, that’s the plan for what we need in financial costs over the next ten years.

“This year, very alarmingly, there is a nearly £17 billion gap at least in what we need and what we can afford.”

Stressing a big increase in costs for nuclear defence, she suggested cuts elsewhere might need to be made.

“There needs to be very hard decisions about what is affordable and perhaps not delivering on some capabilities,” she added.

Labour said the report was “more proof” that the Conservatives had failed to “deal with the deep problems in the MoD”.

In a report on the MoD’s Equipment Plan published on Friday, the PAC warned that gaps in military capabilities had left the UK more reliant on its allies to protect its own interests, while the credibility of Britain’s armed forces had been “undermined”.

The MPs pointed to “widely reported” recruitment issues, with more people leaving the armed forces than being recruited, and the mothballing of Royal Navy vessels due to crew shortages.

In January, ministers had to deny reports that assault ships HMS Albion and HMS Bulwark would be mothballed ahead of their planned retirement dates in the mid-2030s due to a lack of available crew.

The MPs said: “With the support of its allies, the UK’s armed forces continue to fulfil a crucial international role. However, many of its allies are facing similar challenges to the UK, which might affect their ability and willingness to continue providing extensive support.”

The PAC urged the Government to develop plans to mitigate the impact on the UK of the risk that allied support might be curtailed or withdrawn.

MPs also renewed their criticism of the MoD’s procurement processes, saying that slow delivery of new systems had caused gaps in military capability.

Only two of the MoD’s 46 equipment programmes are currently rated as highly likely to be delivered to time, budget and quality, while successful delivery seems unachievable for five projects including nuclear submarine reactors, new communications technology and missiles.

The report accused the MoD of dodging “major decisions” about cancelling procurement programmes it cannot afford, relying too much on an assumption that defence spending will rise to 2.5 per cent, in line with the Government’s long-term ambition.

It also highlighted that the decision to prioritise the Defence Nuclear Enterprise, which manages the UK’s nuclear deterrent, had increased the deficit and risked further squeezing budgets for conventional forces.

Dame Meg said: “This problem is not new. Year-on-year our committee has seen budget overruns and delays in defence procurement. A lack of discipline in the MoD’s budgeting and approach has led to an inconsistent plan that just isn’t a reliable overview of the equipment programme’s affordability.

“We’re disappointed that not only are the same problems we’re used to seeing on display here, but they also appear to be getting worse. Despite a budget increase, this year’s plan shows a clear deterioration in affordability. The MoD must get to a better grip, or it won’t be able to deliver the military capabilities our country needs.”

John Healey, Labour’s shadow defence secretary, said: “Conservative ministers might talk a good game on defence but this report is more proof of their failure to deal with the deep problems in the MoD.”

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