The Prime Minister recently announced an additional £24 billion in funding for our country’s defence by 2025 – the largest investment since the end of the Cold War and £7 billion more than originally planned. The commitment, which exceeds manifesto promises, will allow the UK to invest in cutting-edge technology and position us as a global leader in domains such as cyber and space. It will also cement the UK’s position as the largest defence spender in Europe and the second largest in NATO after the United States.
The investment will help to protect our country at a perilous time internationally, with the threat from terrorism and cyber-tourism very real and some states around the world likely to become more unstable and potentially more radical due to the economic impact of the Covid-19 pandemic. The nature of likely future threats are shifting and we need to shift our defensive capabilities from traditional forms of warfare to more modern methods and this comes at a price. The transition will include a greater focus on combatting cyber-terrorism in particular as we know that we are more vulnerable for example to a North Korea cyber-attack than we are to a missile strike. The investment also includes a new Space Command, which will give the UK the capability to deploy military capability and military satellites independently, without relying on other nations. Having a strengthened military presence will also be important in terms of ensuring that we are an important partner for other liberal democracies around the world including the United States and the EU post our departure from the transition period at the end of this month.
The spending is part of a pattern we have seen across Government departments – to bring forward capital expenditure to protect jobs and stimulate growth – in this case within the defence and shipbuilding industries. If expenditure is inevitable it makes sense to spend it sooner rather than latter and give businesses a boost when they need it the most. It is also notable that many of the jobs that will be created will be highly skilled and in the industries of the future (the creation of an agency dedicated to artificial intelligence being a good example). Investment in highly skilled jobs often has a positive knock-on effect on the economy for decades to come.
But this is certainly not a one-sided issue. Critics question two aspects in particular. Firstly, will the MOD, which does not have a good track record of delivering projects on time or on budget, make the best possible use of this funding? Secondly, is the investment affordable, given the many other pressures on our economy and other Government priorities? These include the Government’s plan to reach net zero carbon emissions by 2050. I will certainly be looking closely at this spending as it is released.
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