I will come on to the issue of the 2% in a moment. We are not falling below it and we do not intend to do so in the period of the spending review. We have also presided over the modernisation of our air mobility fleet, which is now the envy of the world. Many of our NATO allies rely on our capability during operations. The Voyager air-to-air refuelling capability is being used today across Iraq by a number of our allies, not only the RAF. We are transforming our
helicopter fleets. As I saw earlier this morning, we have invested £6 billion over the past four years in state-of-the-art lift, attack and surveillance capability, on time, on budget, providing flexibility so that more can be done with less.
For the Army, last year we placed the Scout vehicle contract—the biggest single order for a UK armoured vehicle in 30 years. It will provide the Army with its first fully digitised armoured fighting vehicle to give it the kind of manoeuvrability that the Chairman of the Select Committee and other hon. Members have called for. I can also confirm to my hon. Friend the Member for Mid Worcestershire (Sir Peter Luff), who did such a good job in laying the foundations for this transformation work, that we remain committed to spending at least 1.2% of the defence budget on defence science and technology. We achieved more than that last year and will do so this year. This will include more investment in disruptive areas of technology such as directed energy weapons and others, where we have committed to shift more of the balance of science and technology investment as we move into a contingent posture.
The Government’s position on the motion before the House this afternoon is clear. We will meet the 2% commitment in this financial year. We will meet it in the next. As we have been consistent, after the general election this will be a matter for the next spending review. The Prime Minister has been clear. We are committed to a 1% year-on-year real-terms increase in spending on defence equipment for the next spending review period. He has also been clear that the size of our regular armed services will remain at the level it is now, with a continuing commitment to grow the reserves to 35,000. It is not just about 2% of GDP; it is about how you spend it and what you are prepared to do with it.
The results of our reform programme speak for themselves. Four and a half years ago, we were in chaos. Today, we have earned a strong reputation across Whitehall for competence and have transformed defence capability for the better. The Treasury, even, has granted the Ministry of Defence the largest delegated budget of any Department. So we have replaced Labour’s chaos with Conservative competence. Where there was a deficit, now there is a balanced budget; where there were cost overruns, now there are cost savings; and where equipment programmes were late and over-budget, now they are overwhelmingly on time. The MOD is on far firmer foundations as we head into the next SDSR and spending review.
3.30 pm