Baroness Goldie (Con)

My Lords, Russian maritime activity has increasingly been a matter of concern, and I thank the Secretary of State for Defence for his timely update on the UK response, through the agency of the Minister, the noble Lord, Lord Coaker. Equally welcome is the candour that has been deployed. It is important for Parliament to understand what the response is, but the detail that the Secretary of State has been willing to disclose is unexpected and certainly helpful and reassuring. It sends a clear message to President Putin that we know what he is up to, and his covert and menacing activity is being closely monitored, with an appropriate Royal Navy intervention. These Benches support the Government’s response to this brazen maritime activity. We commend the Secretary of State on changing the Royal Navy’s rules of engagement, and his robust attitude towards this provocative intrusion by a Russian spy ship deserves praise. It is clear from the Statement that the Government are also cognisant of the wider Russian threat and helpfully lists both the RAF and Royal Fleet Auxiliary response, together with our contribution to NATO and JEF activity. All of that has the support of these Benches, as does the Government’s continuing support for Ukraine. But all of this comes at a cost, and if our UK defence capability is to continue to operate at a level necessary to meet these continuing threats, we have to know how the Government intend to resource that new level of response. In anticipating the reference of the noble Lord, Lord Coaker, to the SDR report, which we are led to believe is expected in March, I gently remind him that by then the Government will have put defence funding into the deep freeze for nine months. Given the news stories now swirling around, with the financial challenges hitting the Chancellor head on, is 2.5% of GDP for defence by 2030, regardless of what the SDR comes up with, off the agenda? Given President Trump’s very robust approach to defence spend, believing 5% to be necessary, what are the repercussions for the special relationship if the UK fails to make 2.5% by 2030? In particular, what are the implications for our mutual defence engagement? Against this backdrop of defence funding fog, what types of MoD orders are currently in limbo? What preparations are in hand to adapt to the new and harsh reality of cutting our defence coat according to the Government’s visibly reduced and increasingly threadbare cloth? In conclusion, there is a patent irony that the Chancellor can find £9 billion to hand over to Mauritius, thereby reducing our national security, while slapping inheritance tax on to our Armed Forces personnel, who fight for our security, and at the same time exempting US armed forces personnel from paying VAT on private school fees in this country while clobbering our own Armed Forces with VAT on school fees. Will the Minister, who I know is a champion of defence and the Armed Forces, convey to the Chancellor, in his own unvarnished language, which I know he is more than capable of using, how illogical, how unfair and how unacceptable this is?