James Cartlidge

Thank you for granting this urgent question, Mr Speaker. Before I turn to the specifics, I hope you will indulge me and allow me to say on behalf of His Majesty’s Opposition that we join all colleagues today in marking Holocaust Memorial Day. May we never forget or be complacent about the lessons. Last Wednesday, the Defence Secretary stood at the Dispatch Box and laid bare the extent of the Russian grey zone threat. This is not a distant threat, but one that has been lurking in our own waters, threatening the United Kingdom and our critical infrastructure. I heard what the Secretary of State said, and responded by confirming that he had our full support in standing up to the Russians. I said that this showed why we urgently needed to increase defence spending. But there is one big problem. The rest of us were listening, but the Chancellor of the Exchequer was not. Despite all the evidence before our eyes of the growing threat, we learned this weekend from multiple sources that spending 2.5% will be delayed beyond 2030. Can the Minister disown such talk, and specifically confirm that we will hit 2.5% during this Parliament? The Treasury is not just failing to back more defence spending; it is hitting our armed forces with higher taxes on death in service benefits and education. The Secretary of State confirmed on Friday that the application of inheritance tax to death in service benefits for the armed forces would go ahead. We understand that to be causing deep alarm throughout the forces community. As for the education tax, we knew that the continuity of education allowance would not be uprated to 100% of the VAT impact, leaving many service personnel thousands of pounds out of pocket, so since the summer I have called for a full exemption for children of armed forces families. However, in a written answer to me in November on the continuity of education allowance and schools VAT, the Minister for Veterans and People said that “the new VAT policy does not offer any exemptions”. Yet on Friday we learned that children of US armed forces families serving in this country and attending British independent schools are exempt from VAT on their UK school fees. I do not begrudge them that—US forces are based in our country to defend us—but we want the same treatment for our people. Finally, can the Minister confirm that the Secretary of State will bang on the door of No. 11 to demand, first, that the tax on death in service benefits be dropped and, secondly, that British forces families be treated the same as their American colleagues and granted a full exemption from education VAT? Is it not time that Labour backed our armed forces with action, rather than just words?