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Strategic Defence and Security Review

The right hon. Gentleman has made his point very clearly. Obviously, I am unable to say what discussions might have taken place. However, the point is that, as the National Audit Office said, there was an added overspend of £3.3 billion in the final year alone in the projects budgets. That is very clear. As the Prime Minister has said, the SDSR was about taking the right decisions to protect national security in the years ahead, not simply a cost-saving exercise to get to grips with the biggest budget deficit in post-war history. However, let us be absolutely clear that those are not two separate things. Proper strategic thought encompasses ends, ways and means, matching ambition and policy to commitments and resources. A strategy that does not take account of fiscal or budgetary measures is no strategy at all; it is simply wishful thinking. As Lord Ashdown recently put it, we cannot defend a country on flights of fancy. Furthermore, history has clearly shown how fundamental a strong economy is for effective national security and defence over the long term. We were left an economically toxic legacy by the previous Government. They doubled the national debt and left us with the biggest budget deficit in the G20. We are spending £120 million every single day just to pay off the interest on Labour's debt. The interest we will pay next year on the debt is some £46 billion, significantly more than the entire annual defence budget, and we will get nothing for that money. Without regaining economic strength, we will be unable to sustain in the long term the capabilities required, including military capabilities, to keep our citizens safe and maintain our influence on the world stage. If we learned anything from the cold war, it is that a strong economy equals strong defence. The economic legacy of the previous Government is a national security liability. We were left with a situation in which the country's finances were wrecked while the world is a more dangerous place than at any time in recent memory. Every Department must make its own contribution to deficit reduction and the MOD is no exception, but because of the priority we place on security the defence budget is making a more modest contribution to deficit reduction relative to almost all other Government Departments. The SDSR meets twin priorities of protecting front-line capability for Afghanistan and beginning the process of transforming our armed forces to meet the challenges of the future, setting the path to a coherent and affordable defence capability in 2020 and beyond.