§ Mr. Onslowasked the Secretary of State for Defence whether he will make a further statement on the defence budget.
§ Mr. PymMy right hon. Friend the Chief Secretary has announced that, subject to parliamentary approval, the defence cash limit for 1980–81 will be raised by £203 million to £10,492 million. The total defence budget figure will be £11,151 million.
This budget allows the Government's defence policy to be developed on the lines set out in Cmnd. 7826. But expenditure has been greater so far this financial year than is usual in its first few months because firms have been making faster progress with defence orders and submitting their bills more promptly and prices of equipment have moved ahead faster than expected.
I have, therefore, taken steps to rein in spending. I am also instituting, initially for a period of three months, a moratorium on new defence contracts (save for a few essential exceptions) and I am considering what further measures will be needed to contain spending within the revised cash limit.