Update on Defence capabilities - Statement by the Defence Secretary John Healey to the House of Commons on Wednesday 20 November.

I have been Secretary of State for Defence for four months.

It is an honour and privilege to have this job.

Every day, I meet staff from the military, civil service and industry who are totally inspiring and dedicated to keeping this country safe.

Often unseen, often unheard by us…and by the public.

We are proud of their professionalism – and we thank them for everything they do.

Madam Deputy Speaker, this is a new government getting on with delivering for defence. We've:

Stepped up support for Ukraine…

Signed the landmark Trinity House Agreement with Germany…

We've given Forces personnel the largest pay rise in over 20 years…

Confirmed Defence as a priority sector, as part of the Government's Industrial Strategy…

And this week, secured the Second Reading of the Armed Forces Commissioner Bill to improve service life.

[Political content removed]

But Madam Deputy Speaker, we know these are serious times – war in Europe, conflict in the Middle East, increasing global threats….

And technology is rapidly changing the nature of warfare, as we see right now in Ukraine.

Before the election, we knew there were serious problems with defence – one previous [political content removed] Defence Secretary told this House last year that our Armed Forces had been “hollowed out and underfunded” over the last 14 years.

However, as I have told the House since taking office, the problems are even worse than we thought….

It was a dire inheritance – the state of the finances and the state of the Forces.

Often hidden to Parliament.

Billion-pound black holes in defence plans.

Taxpayers money being wasted.

Military morale down to record lows.

That's why we're taking swift action: to inject investment, get a grip of MOD budgets, and kick start much-needed reforms to start fixing the foundations for the UK Defence.

I want to update the House on what we're doing today.

First, on investment…

In July the Chancellor exposed the £22 billion black hole at the heart of the Government plans.

Hundreds of unfunded pressures. This year, and into the future too.

The first duty is of the Government is to keep this country safe.  

That's why the Chancellor has announced in the budget that defence will receive a boost next year of nearly £3 billion to start to fix the foundations for our forces.

The Chancellor also told this House, “we will set a clear path to 2.5% of GDP on Defence”…..

Which will be fully funded – [political content removed].

But it is not just how much you spend on defence, but how you spend that counts….

Which is why we are conducting a Strategic Defence Review (SDR), at pace, to assess the threats we face and the capabilities that we will need in the future….

And it is also why I have also introduced tight financial controls on the department, including a £300 million reduction in planned consultancy spending.

Madam Deputy Speaker, we are getting a grip of MOD budgets and investing in people and in future technologies.

Second, on kit and capabilities.

For too long, our soldiers, sailors and aviators have been stuck with old, outdated equipment… because Ministers wouldn't make the difficult decommissioning decisions.

As technology advances at pace, we must move faster towards the future.

So today, with full backing from our Service Chiefs, I can confirm that six outdated military capabilities will be taken out of service.

These decisions are set to save MOD £150 million over the next two years and up to £500 million over five years – savings that will be retained in full in Defence.

Alongside this Statement, I have laid a WMS to outline the detail of my decommissioning decisions. These include:

HMS Northumberland – a frigate with structural damage that makes her simply uneconomical to repair. 

46 Watchkeeper M1s – a 14 year old Army drone which technology has overtaken.

HMS Albion and HMS Bulwark – landing ships both effectively retired by previous Ministers but superficially kept on the books at a cost of £9 million a year.

14 Chinooks – some over 35 years old – accelerated out of service.

Two wave class tankers – neither of which have been to sea for years.

And 17 Puma helicopters – some with over 50 years' flying - will not be extended.

I recognise that these will mean a lot to many who've sailed and flown them during their deployments around the world.

They have provided a valuable capability over the years. But their work is done. We must look now to the future. 

All current personnel will be redeployed or retrained – no one will be made redundant.

And as the First Sea Lord says about these retirements, “the threat is changing so we must have the self-confidence to make the changes required”.

And of course Madam Deputy Speaker be in no doubt, the future for our Royal Marines, and their elite force, will be reinforced in the SDR.

These are common-sense decisions which previous governments failed to take.

Decisions which will secure better value for money for taxpayers and better outcomes for the military.

Decisions which are all backed by the Chiefs and taken in consultation with the SDR Reviewers. Allies have been informed and we have constant dialogue with NATO.

These will not be the last difficult decisions I will have to make, to fix the defence inheritance that we were left with. 

But they will help to get a grip of the finances now and give greater scope to renew our Forces for the future – as we look towards the Strategic Defence Review and to 2.5%.

I want to thank our Chiefs for their determination to work together with me on this.

Third, on reform…

I have to say that Defence reform has been of little interest to recent Defence Secretaries.

It doesn't make headlines.

It doesn't advance careers.  

But how Defence works must change to deal with the increasing and diversifying threats.

So recently, I launched the biggest reform programme in defence for 50 years.

To create a stronger UK defence centre to secure better value for money, better outcomes for our Armed Forces, and be better able to implement the Strategic Defence Review.

Central to a reformed Defence is our new fully-fledged National Armaments Director, for which recruitment is underway now.

The Chief of the Defence Staff will oversee a new Military Strategic Headquarters…operating from the end of 2024

…where he will formally command the individual Service Chiefs for the first time

… and will be central to prioritising investment spending between the Services.

The Permanent Secretary will lead a leaner department, with more policy muscle and influence.

These reforms will ensure faster delivery, better integration and clearer accountability across Defence to make our Forces fit to fight in the future.

Finally, our people.

This Government is putting defence people at the heart of defence plans.

But we inherited [political content removed] crisis in military recruitment and retention.

Targets missed every year for 14 years. Morale at record lows.

We can't fix these deep-set problems overnight. But as Ministers, we are on a mission to lift military morale.

We have awarded the Forces the largest pay increase in over 20 years…

And I can announce today:

that I'm introducing from April, a new £30,000 retention payment for a cohort of Tri-service aircraft engineers who sign up for additional three years' of service. This will be open to around 5000 personnel in total.

And from January, a new £8,000 retention payment for Army personnel who have served four years – supporting 4000 personnel per year for three years, so 12,000 troops in total.

Madam Deputy Speaker, today I have set out where we were, and where we are going.

We are in a new era of rising global tensions.

We need a new era for UK Defence.

To achieve this…

The Government is investing £3 billion extra next year and setting a clear path to 2.5%…

Driving far-reaching reform…

Fixing the foundations for our Armed Forces…

To make Britain better defended….

Strong at home and secure abroad.