Defence spending given £11bn boost as former minister warns of new Cold War
Defence spending is set to increase by £11bn over the next five years amid fears over the UK’s “hollowed out” armed forces.
Chancellor Jeremy Hunt confirmed in Wednesday’s budget that the Ministry of Defence’s finances would receive an £11bn boost over the next half-decade.
But Tobias Ellwood, defence committee chairman, said the Chancellor has left “just £1bn a year” to improve conventional forces, with the bulk set to be spent on the nuclear deterrent, Ukraine support and replenishing depleted arms stockpiles.
The former defence minister insisted further cash is needed, saying: “That will not allow our hollowed-out army to be regenerated.
“We’re sliding towards a new Cold War as Russia and China further align themselves to challenge and exploit the frailty of our global order.”
It comes after ministers have piled on the pressure, calling for the armed forces’ coffers to be topped up amid war in Ukraine and rising tensions with Russia and China.
Prime Minister Rishi Sunak unveiled a refresh of the UK’s integrated defence review on Monday, which described the Asian state as an “epoch-defining challenge”, amid a US trip to update the AUKUS nuclear submarine deal with US President Biden and Australian Anthony Prime Minister Albanese.
Conservative MP Jason McCartney told CityAM: “As a former RAF officer and member of the NATO parliamentary assembly I really welcome the package of funding for the MoD.
“With our defence budget set to be nearly 2.25 per cent of GDP by 2025 we will be among only a handful of NATO countries to reach the two per cent of GDP defence spending target.”
Evie Aspinall, British Foreign Policy Group researcher, branded the increase a “victory for Ben Wallace and the MoD who have campaigned ardently” for the rise.
But she warned: “However, as we’ve seen with the commitment to return to 0.7 per cent gross national income spending on aid and development, tying the commitment to spend 2.5 per cent of GDP in defence to when fiscal circumstances allow means this could still be a long way off.”
Veterans’ minister Johnny Mercer also welcomed an “unprecedented investment in our country’s veterans”.
He wrote on Twitter: “With the Operation Fortitude funding it’s over £40m – [it] will double the size of the Office for Veterans’ Affairs, end homelessness for veterans, drive veteran employment and ensure long term care for our most seriously injured.”
Hunt said the UK’s “return to growth has direct consequences for our role on the global stage” and told MPs: “Following representations from our persuasive defence secretary, I confirm that we will add a total of £11bn to our defence budget over the next five years and it will be nearly 2.25 per cent of GDP by 2025.”
The news follows a £5bn package for the MoD this year, announced earlier this week, plus a £2bn boost the following year and £3bn the year after that.
Labour leader Sir Keir Starmer said his party would “look carefully at the details of the military spending announced, and we will support them”.
But he added: “What we cannot accept is the use of the war as a blanket excuse for failure.”