Contribution
The hon. Gentleman is quite right that defence bonds, as with all bonds, would be borrowing. We have spoken before about the need to increase defence spending through cross-party talks, and a reversal in aid spending would be part of an overall package of how we would budget in the future. One way of doing that, which we have looked at and will propose later today, is rejoining a customs union with the European Union, which would generate increased spending.
Those bonds would help to modernise our armed forces, strengthen our sovereign capabilities and support British defence firms, including the small and medium-sized businesses that are so often at the cutting edge of innovation. That would also give the public a direct stake in the defence and security of our country. This is about spending better, not simply spending more. For too long, defence procurement has been slow, bureaucratic and wasteful. Too many programmes have been delayed and too many costs have spiralled, and too often British industry has been left without the certainty it needs to invest, hire, train and grow.
If we are serious about national security, we must also be serious about industrial security. That means backing British manufacturing, investing in research and development and supporting apprenticeships and skilled jobs. It means ensuring that defence spending strengthens communities across this country, not just the balance sheets of a handful of prime contractors. It means recognising that in the modern world, defence is not just about the number of tanks, ships and aircraft that we possess, important though they are; it is about cyber, space, drones, AI, secure supply chains, energy resilience and the ability to move quickly when threats change.
Climate change is causing global instability. Melting ice opens up new flashpoints in the Arctic, and stress on food and water resources drives displacement and conflict. Our armed forces need the tools to fight the wars of the future, not just to patch up the gaps left by the past, but Britain cannot do this alone. If the last century has taught us anything—and if recent years have taught us anything—it is that our security is bound up with that of our allies. That is why we must be unwavering in our continued support for Ukraine. We must strengthen NATO, deepen co-operation with Commonwealth allies such as Canada and Australia, and rebuild a serious defence relationship with Europe.
The Liberal Democrats have called for a new European rearmament bank and for UK participation in the Security Action for Europe rearmament programme. That would allow Britain and our allies to mobilise investment at the scale required to ensure that our defence industries lead the next generation of technology, while also generating the economies of scale needed to reduce costs over the long term. This is not about choosing between Britain and Europe; it is about recognising the obvious truth that Britain is safer when Europe is stronger, and Europe is stronger when Britain leads.
National security should not be subject to short-term political games. That is why we have called on the Government to urgently convene cross-party talks on how we reach 3% by 2030. Our adversaries are not waiting for us to get our act together, and our armed forces should not have to wait either. Defence requires all of society to be involved. Being ready to defend our nation means also building our national resilience.
The Government must move faster and show far more ambition to involve the public in defence and security. Should the worst ever happen, having 70 million of us ready to come to our nation’s defence would be the most powerful weapon of all, but that requires leadership from Government, which has so far been absent, despite promises of a national conversation. That means learning from our friends in the Baltic and elsewhere about how we can harness the talents of the British people to become a more resilient and prepared country. The best way to prevent a war is to prepare for it.
The choice before us is clear: we can continue with managed decline, delayed plans and underpowered commitments, or we can choose seriousness. We can publish the defence investment plan and the defence readiness Bill, commit to 3% by 2030, launch defence bonds, back British industry, rebuild our armed forces and strengthen our alliances. We can send a clear and unambiguous message to Putin and to every other authoritarian regime watching us that Britain will defend itself, its allies, its values and its way of life. That is the ambition that the King’s Speech should have shown and the action that this country needs, and that is why Liberal Democrats will continue fighting for it.