Lord Newby (LD)

My Lords, I too thank the noble Baroness for repeating the Statement. The adage that a week is a long time in politics has rarely been so graphically demonstrated than over the past seven days. In that time, we have seen the brutal treatment of the Ukrainian President by the President of the United States, the suspension of all US military support for Ukraine, and the beginnings of a co-ordinated European response to this new and dangerous situation. In all of this, the Prime Minister has played a statesmanlike and positive role, and we commend him for it. No doubt we all found his presentation of the letter from the King to Trump cringeworthy, but there is no doubt that it helped to create a positive atmosphere for the talks which ensued. It was a small price to pay for a relatively positive outcome. Nothing can excuse the new American position. It not only rips up the basis of our support for Ukraine but undermines Europe’s assumption that the US would in all circumstances be a strong and dependable ally. Today’s comments by JD Vance, which disrespect UK forces and their contribution alongside our American allies in Iraq and Afghanistan, are just the latest evidence of an arrogance and an ignorance that are chilling. The response which the Prime Minister is adopting—to try to broker a re-engagement between the US and Ukraine while seeking to put together a coalition of the willing to defend Ukraine—is to be strongly welcomed. But I think it is a mistake to believe, as the Statement does, that under this presidency our relationship with America, at least in terms of security, can be strengthened to any significant extent. Trump has made it clear that he does not accept a continuing responsibility for the security of Europe. We need to accept this and plan accordingly. This has major and unpalatable consequences in terms of military expenditure, but also provides opportunities for the UK to regain a leading position in Europe and for our defence industries. In the short term, we welcome the loan to Ukraine backed by the interest from frozen Russian assets and the use of UK Export Finance to fund the purchase of missiles to be manufactured in Belfast. But these are relatively small interventions and much more is going to be needed. One idea which is gaining traction is the establishment of an international rearmament bank, which would facilitate access to private sector capital for Ukraine’s ongoing struggles. Do the Government plan to pursue this? Another proposal which we have discussed often in your Lordships’ House is for the seizure of Russian assets—the capital, not just the interest. In yesterday’s questions on the Statement, the Prime Minister said that this was being looked at but that it was very difficult. At the moment, this proposal seems to be being taken only half-seriously. I accept that legislation might be necessary to enable it to happen, but I am sure that Parliament would fast-track such a measure. Can the noble Baroness give us any indication of the timescale for further work on this proposal and whether the Government are prepared to legislate to implement it? For the longer-term move to 3% of GDP for defence spending, we have suggested that the Government should initiate cross-party discussions to see whether a consensus can be reached on how this might be funded. Do the Government have any plans to do this? Every passing day demonstrates that the UK and our European allies are going to have to accept a step-change increase in responsibilities for our own defence. The Prime Minister clearly accepts this also, and he has our firm support in moving to achieve it.