Strategic Defence and Security Review

The figure is certainly spread over the 10-year period of this review. The gap between the commitments that the Labour Government made and the budget that was in place to pay for it is £38 billion. Before the election, both Opposition parties charged the Government with doing just this. We did not know the scale of it, and it turns out to be even worse than we had charged. We therefore have no choice but to face the gravity of that legacy and set about the task of trying to build future defences that are coherent and effective, but doing so against that budget background. We hear that different Government Departments are being asked to indicate what it would entail to make reductions in their budgets of a different size. Let me explain to the House that if the defence budget were to be cut by 10% in real terms, the defence programme would have to be cut by 19% in real terms in order to achieve that. That is the meaning of the black hole that we were left by the previous Government, and that is the scale of the task that the current Government are facing. The Chairman of the Defence Committee summed up the situation very well at the beginning of his speech when he talked about speed and the issues that have to be determined about how the process is taking place. Let me make this perfectly clear. As I have said in interviews this week, the time scale of the review is a great deal brisker than we would have chosen in an ideal world, but this is not an ideal world—it is a world in which we have been bequeathed the financial situation that I have described, and that needs tackling as a matter of urgency. We have to ensure that the decisions that we take in the next few weeks in the SDSR are sustainable not only over the short and medium term but over the long term, and they have to proceed in parallel with the Government's spending review. The alternative would have been just to sit back and allow the Treasury to dictate a spending envelope in which a strategic defence review that we might have conducted at a more leisurely pace would be obliged to fit itself, whereas by doing the work at the same time as the comprehensive spending review, we are able to fight our corner within the spending round having done the work involved. The right hon. Member for Coventry North East (Mr Ainsworth) said that everybody involved in defence in the political community—he quoted my words from before the election—should kick up rough. My sense is that that is exactly what everybody is doing, and I am sure that he is happy to play his part in that process.