Armed Forces Bill (Third sitting)
I beg to move amendment 17, in clause 3, page 7, line 16, at end insert— “(4) The Defence Housing Service will operate within a budget which must be set out in any Defence Investment Plan published by the Secretary of State.” This amendment would ensure that Defence Housing Service’s budget is set out in any Defence Investment Plan published by the Secretary of State. Good morning, Mr Efford. It is a pleasure to serve under your chairmanship again as we move on to clause 3, which concerns the proposed new Defence Housing Service and associated matters. I will speak to amendment 17 in my name. There are no Liberal Democrats in the room yet, but I am sure they will be joining us at some point. We have been assisted in examining this topic by our very helpful evidence sessions with Mr David Brewer, the putative head of the new Defence Housing Service, and Ms Natalie Elphicke Ross, a former parliamentary colleague of ours on both sides of the House, who has materially assisted the Government with their review and the creation of their new plan. We acknowledge her efforts. We also had a very informative Defence Infrastructure Organisation briefing during our visit to Portsmouth, where we visited a number of dwellings in a military patch outside the wire. That included houses representing both before and after, as it were: those that had been refurbished to an obviously good standard, and those that were still awaiting that work. I place on record our thanks to members of the DIO and to the Clerks for what was, as I hope the whole Committee will agree, an extremely informative visit. Before we get into the meat of the debate, I will take it as read that all members of the Committee share the same objective: an improved quality of service family accommodation for our valued armed forces personnel and their families. Again, for the record, we thank them for their service. We would also like to see good-quality accommodation for senior service personnel. The debate is therefore not so much about the objective, which I think we all share, as about the best way of achieving it. That is where we may have some genuine differences of opinion this morning, but hopefully for the right reasons. Amendment 17 focuses on the budget for the proposed new Defence Housing Service. Its essence is that the Defence Housing Service’s budget should be clearly set out in any defence investment plan published by the Secretary of State. [Interruption.] Good morning! The Liberals are now with us. There is an obvious historical context for the amendment. I think it is fair to say that down the years, under Governments of both colours—three colours, if we include the coalition Government of 2010 to 2015—there has been a constant tension in the funding of the defence housing estate. On the one hand, there has been a desire to provide capital to upgrade it; on the other hand, there have been general pressures on the defence budget. It has not been unknown for capital expenditure to be deferred from one year to another to free up resourcing for other operational priorities that were deemed more pressing or urgent by Ministers at the time. The aims and objectives of the new Defence Housing Service are rightly ambitious, which raises questions about how to secure the money and what safeguards there are, if any, against any future Government raiding that substantial pot of cash for other priorities should the circumstances arise. Both Mr Brewer and Ms Elphicke Ross were very clear in their evidence on the subject on 4 March: they said that after considerable discussion with the Treasury, a sum of some £9 billion had been put aside to create the Defence Housing Service and enable it to achieve its objectives laid out in the Bill. Nevertheless, during the same evidence session, it was established after some detailed—indeed, forensic—questioning from my hon. Friend the Member for Exmouth and Exeter East that the money had not been formally signed off by His Majesty’s Treasury. That is because the sum is currently included in the defence investment plan, which itself has not been signed off by His Majesty’s Treasury. As we all know, the defence investment plan has not been published, although Parliament was initially promised it by last autumn. I do not intend to labour—no pun intended—the point this morning, as we debated it at some length in the main Chamber on Tuesday evening. Suffice it to say that when the Government published the strategic defence review in July last year, they deferred many of the crunchy equipment and capability decisions to a subsequent defence investment plan. We were promised that it would be published in the autumn. We were then faithfully promised that it would be published by Christmas. We were then absolutely promised that it would be published fairly shortly thereafter. Here we are on 26 March, the day on which the House rises for the Easter recess, and still it has not been published. That leads to an additional problem, including for the Defence Housing Service. Part of the DIP, presumably including service accommodation in Scotland and Wales, could be affected by the outcome of the forthcoming Scottish Parliament and Welsh Senedd elections, at least indirectly. If the DIP is not published extremely shortly, it is likely to be caught by the purdah rules on those national elections. The putative date for the King’s Speech seems to be settling on or around 13 May. That means that the DIP is unlikely to be published until the second half of May, nearly two months from now, by which time the Defence Housing Service is meant to be under way. In essence, we are debating a plan based on a long-term budget that has not yet been agreed by the Treasury because, bluntly, the Ministry of Defence is at war with it. That is why the DIP has not been published. It is conceivable—although, for the record, I hope that this will not be the case—that whenever final negotiations are eventually concluded, the Treasury may insist on further reductions in the DIP, which in turn could lead to further reductions to the £9 billion currently allocated for the programme. That is why we tabled amendment 17, which states that the budget for the Defence Housing Service must be very clearly set out in the defence investment plan, whenever it is published, not least so that in subsequent iterations of the plan we can see whether the funding allocation is being reduced or increased. Will the Minister guarantee to the Committee that, as of 26 March 2026, the £9 billion in the forward programme has been formally signed off by His Majesty’s Treasury? In other words, can he guarantee that it is ringfenced in the DIP? If he cannot, can he at least tell us when the DIP will finally be published? A fortnight ago, I said privately to a Labour peer that waiting for the DIP was like waiting for Godot. He replied, “Yes, Mark, but at least Godot finally turned up.” Will the Minister answer those questions so that the Committee can take a view on the surety of the funding on which this admittedly very ambitious plan undoubtedly rests?