§ Mr. Wallasked the Secretary of State for Defence if the base for assessments of future defence expenditure will be taken as the 2½ per cent. real increase decided for the coming year or the 3 per cent. which was the original undertaking to NATO.
§ Mr. PymThe undertaking to NATO is to aim for real increases in annual defence spending in the region of 3 per cent., recognising that, for some individual countries, economic circumstances would affect what could be achieved. Plans for 1982–83 and 1983–84 will be contained in the public expenditure White Paper to be published with the Budget next year.