The only comfort that this House can take from the Opposition’s position is that one of the very few Government Departments that the shadow Chancellor would not abolish is the Ministry of Defence.
I wish to set out some context about how, since 2010, defence spending has required, and has undergone, significant reform. The situation we inherited from the Labour Administration was chaotic. There was a severely overheated programme with costs that outstripped the
available budget, which left a black hole of £38 billion. Difficult decisions were routinely ducked. The Gray report, commissioned by the previous Government, identified that the average equipment programme overrun was five years, and with an average increase in cost of £300 million. The National Audit Office’s major projects report for 2009 evidenced an increase in costs in that year alone of £1.2 billion across the major projects, including the infamous decision to delay the carriers in a desperate attempt to cram that year’s spending into the available budget. To sort that out required one of the biggest defence transformation programmes undertaken in the western world. Today, the defence budget is in balance—