0:00:07 > 0:00:12The statement is as follows. I undertook to return to the House at
0:00:12 > 0:00:17the earliest possible opportunity to update honourable members on the
0:00:17 > 0:00:20programme to modernise defence. Which the Ministry of defence will
0:00:20 > 0:00:24be conducting in the months ahead. Following agreement of the
0:00:24 > 0:00:29high-level findings of the national capability review by the national
0:00:29 > 0:00:31Security Council, I've agreed with the Prime Minister and Chancellor
0:00:31 > 0:00:36that we should take forward the recommendation for programme of
0:00:36 > 0:00:39further work to modernise defence. To deliver better military
0:00:39 > 0:00:45capability and value for money in a sustainable and affordable way. This
0:00:45 > 0:00:50is essential if defence is to make its full contribution to national
0:00:50 > 0:00:57security. The 2015 national security strategy, and strategic security
0:00:57 > 0:01:01review set out a clear ambition. To ensure that the Armed Forces can
0:01:01 > 0:01:05tackle the threat that we face. It also propose important new policy
0:01:05 > 0:01:13initiatives including a stronger international approach. Modernise
0:01:13 > 0:01:19policies and defence making. International prosperity. And we're
0:01:19 > 0:01:25making real strides to unlock greater efficiency and productivity.
0:01:25 > 0:01:28Protecting the United Kingdom and our people remains our first
0:01:28 > 0:01:34priority. As a threat we face become more complex and intertwined, we
0:01:34 > 0:01:41will need to work ever more closely with our Nato allies. Which also
0:01:41 > 0:01:44need to expect to read actively involved with the partners in the
0:01:44 > 0:01:48Gulf in tackling shared threats to our security, and the Asia-Pacific
0:01:48 > 0:01:54region will become more important to us in the years ahead. The Ministry
0:01:54 > 0:02:00of defence is making a major contribution to our prosperity as we
0:02:00 > 0:02:05procure the equipment, our Armed Forces to serve and support. Defence
0:02:05 > 0:02:10exports at which they're been recent successes most notably the £6
0:02:10 > 0:02:16billion Typhoon contract agreed with Qatar. Significant events last year,
0:02:16 > 0:02:20the terrorist attacks in London and Manchester, major storms ravage
0:02:20 > 0:02:24British dependencies in the Caribbean are reminders of our wider
0:02:24 > 0:02:32responsibilities. Rita contained threats that have an origin, and be
0:02:32 > 0:02:37prepared to react swiftly when crises arise. This will require the
0:02:37 > 0:02:45joint force we're building to be and agile. We will need to be Gabe
0:02:45 > 0:02:50Bullough operating in all five domains, land, sea, air, space, and
0:02:50 > 0:02:56fibre. We'll need be international by design, routinely exercising and
0:02:56 > 0:03:04operating with allies. It would to be credible and capable of operating
0:03:04 > 0:03:09against state and non-state threats. Normally not alone, but with Nato
0:03:09 > 0:03:14allies and other parts. But we must also be able to act on her own if
0:03:14 > 0:03:18and when required. It must be able to contribute to our national
0:03:18 > 0:03:21security at home working with the police and other national security
0:03:21 > 0:03:28organisations. While the major elements of our plans for joint
0:03:28 > 0:03:34force 2025 remained the right ones, in order to secure competitive
0:03:34 > 0:03:37advantage against our adversaries need to make sure to move quickly to
0:03:37 > 0:03:40strengthen our capability in priority areas. And reduce the
0:03:40 > 0:03:46resources we were duped -- reduce the resources we devote elsewhere.
0:03:46 > 0:03:53To ensure we have the policy and plans to implement our strategy. So
0:03:53 > 0:03:56that our investment in national security capabilities is as joined
0:03:56 > 0:04:00up, effective and efficient as possible. To address current
0:04:00 > 0:04:05national security challenges. A report we published later in the
0:04:05 > 0:04:08spring. As my right honourable friend the Prime Minister said in
0:04:08 > 0:04:16her recent banquet speech the threats, risks, and challenges have
0:04:16 > 0:04:20become more complex and intertwined. And have developed in areas and ways
0:04:20 > 0:04:24we probably -- probably expected but at a much greater pace that was
0:04:24 > 0:04:30foreseen. The defence budget is 36 billion this year, this year the
0:04:30 > 0:04:33fifth largest defence budget in the world. And it will increase by £1
0:04:33 > 0:04:39billion each year to almost 40 billion by 20 21. The UK remains one
0:04:39 > 0:04:45of the few countries to exceed Nato's 2% spending target. In this
0:04:45 > 0:04:51government permitted to continue to increase the defence budget by at
0:04:51 > 0:04:55least .5% above inflation every year. However we must do more to
0:04:55 > 0:04:59ensure that we use our resources effectively and deliver the
0:04:59 > 0:05:05efficiencies the department is committed to... Be reinvested in the
0:05:05 > 0:05:09capabilities we require for our Armed Forces. It is for these
0:05:09 > 0:05:13reasons I have agreed with the Prime Minister and the Chancellor to
0:05:13 > 0:05:16launch the modernising defence programmes that we can strengthen
0:05:16 > 0:05:19and modernise the Armed Forces to meet the threats that were
0:05:19 > 0:05:26identified. Modernising defence allows to deliver better military
0:05:26 > 0:05:31ability for money and is sustainable and affordable way. It will allow us
0:05:31 > 0:05:35to ensure that the defence capabilities coupled and other
0:05:35 > 0:05:38national security... In the most effective way. I'm determined to
0:05:38 > 0:05:45realise this bill for modernized and more effective joint force. That can
0:05:45 > 0:05:49deter threats more effectively, that ensure that we can deliver what's
0:05:49 > 0:05:55required of defence today and succeeded in any future conflicts.
0:05:55 > 0:05:59Turning this approach into reality will be my key goal for the
0:05:59 > 0:06:03modernising defence programme. This programme will involve four strands
0:06:03 > 0:06:12work. First three will optimise how the MOD is organised and operating.
0:06:12 > 0:06:18By defining ways to be more efficient and productive. And
0:06:18 > 0:06:22improve our performance on the commercial and industrial issues.
0:06:22 > 0:06:28The fourth strand will look at the capabilities that defence requires
0:06:28 > 0:06:33to contribute to our free national security objectives. Today and in
0:06:33 > 0:06:37the future. But also most importantly to understand the
0:06:37 > 0:06:40ever-changing threats that this country faces. I'm determined to use
0:06:40 > 0:06:47modern rising to ensure the defence makes its full contribution to
0:06:47 > 0:06:52national security on a sustainable basis. I will speak to right
0:06:52 > 0:06:55honourable members about this programme of work on a very regular
0:06:55 > 0:07:17basis. And I will keep updated as decisions are made. In the meantime
0:07:24 > 0:07:29might the world is becoming more dangerous place. We cannot afford to
0:07:29 > 0:07:40shy way from this reality. Nor can we take our security for granted.