Budget: Extra £1 Billion Given To UK Defence

Philip Hammond highlighted the need to boost the UK's cyber capabilities and anti-submarine warfare capability.

Video: Warning - James Hirst's report includes some flash photography. 

The Ministry of Defence has been given £1 billion in additional funding in the Budget, the Chancellor has announced.

Philip Hammond highlighted the need to boost the UK's cyber capabilities and anti-submarine warfare capability and maintain the pace of the Dreadnought programme.

The funding will cover the remainder of 2018-19 and 2019-20.

Earlier this year, the Prime Minister promised an extra £600 million to keep the Dreadnought programme on schedule.

The Defence Secretary responded to the Budget, saying:

The submarines will carry the Trident deterrent when the current Vanguard class is scrapped.

"The UK spends more on defence than any NATO member except the US," Mr Hammond told the House of Commons.

"But over the last year we've had stark reminders of the scale, scope and complexity of the threats we face.

"As a former Defence Secretary myself, I understand the immediate pressures our armed forces are facing.

The Dreadnought-class submarines are due to enter service in the 2030s (Picture: BAE Systems).

"So, I will today provide an additional £1 billion to the MOD.

"To boost our cyber capabilities and our anti-submarine capabilities and to maintain the pace of the Dreadnought programme to ensure a continuous at sea deterrent."

Also announced was that the Treasury is to make a £10 million donation to mark the Centenary of the Armistice by supporting veterans with mental health needs.

"Many projects are raising money for veterans charities from sales of commemorative items on which VAT is charged," said the Chancellor.

"We cannot waive the VAT due on these sales, but we can make a donation with the VAT we will receive.

"The Treasury will mark the centenary of the Armistice by making a donation of £10 million to the Armed Forces Covenant Trust to support veterans with mental health needs."

He went on to say that £1.7 million will be spent for educational programmes in schools to mark the 75th anniversary of the liberation of concentration camps.

Up to £70 million has been pledged to construct the national element of the Defence and National Rehabilitation Centre near Loughborough.