The Ministry of Defence (MoD) is set to receive a £2.9 billion increase in its budget, announced by Chancellor Rachel Reeves in her first budget speech.
The Labour government reaffirmed its commitment to long-term defence investment, aiming to gradually raise spending to 2.5% of GDP—though a timeline for this increase remains undetermined.
Addressing the House of Commons, Ms Reeves highlighted the government’s focus on bolstering national security.
“There is no more important job for the government than to keep our country safe,” she stated. This funding boost is intended to ensure the UK continues to meet and exceed its NATO commitments, and Ms Reeves reiterated that the government would maintain £3 billion in annual military support for Ukraine.
Additionally, Ms Reeves outlined allocations for upcoming commemorations, including remembrance services for the 80th anniversary of VE and VJ Days next year.
While details of the allocation within the MoD are yet to be specified, the increase aligns with the government’s ongoing Defence Strategic Review, expected to conclude next year. The review is anticipated to inform future defence priorities and spending plans.
The Chancellor’s broader fiscal plan aims to address economic challenges, including a £40 billion tax increase aimed at stabilising the economy. The government plans to tackle a £22 billion deficit attributed to previous administrations and raise funds through measures such as increasing employers’ national insurance contributions starting in 2025.
Obviously this is good news, and we will take the win, however this extremely modest increase will barely make a difference to the issues our armed forces are facing, unless these additional funds are directed to a specific task.
Spot On – its a “political” increase but several billion per year short of avoiding significant “restructuring” in the forthcoming Defence Review
Split between three services, and the myriad other claims on defence, this is miniscule amount. Will not even be noticed.
It’s around a 5% increase. That is a noticeable amount. It’s a start, let’s see what happens from here.
For a budget already about £5Bn per year underfunded = wake up!
How is a increase not going to help with that. To me it was a major surprise considering how bad the public finances are in.
Clear intent that the current government actually intend to increase to 2.5% unlike the last which just talked about it and did nothing.
You actually believe that do you.The public financces are now far worse off, with labour on its old game of borrowing and spending. Clear intent that a leopard doesn’t change its spots.
Let us wait until the latest Government defence review is published, then we will see how serious they are about defending this country.
Yes I do. Difference is labour is borrowing to invest whilst the last goverment didn’t invest in anything, resulting in everything from roads, to rail, yo hospitals, to NHS, to schools failing. Which its the economy
There is a reason that wages grew in real terms under the last Labour and went down heavily under the Conservatives.
I envy your belief in Starmers utopian state, misguided though it is.
Time will tell. Also don’t forget national debt was sky rocketing under the Conservatives even before covid.
I’m basing my hope on history. The economy and public services and real term living standards went all up under the last Labour and all down during the last Conservative. They were all headed down before covid hit so that isn’t the reason nor is Russia.
There is not a single performance measure where the Conservatives have done better tha the last labour government.
Whether the current one will do the same, time will tell.
Indeed. From highest rate of public satisfation with the NHS in 2010 to lowest under the last Tory mess that was pretending to be a government, fo r example.
Some people have forgotten which party had been in power for fourteen years.
as 1 type 45 costs over 1 billion and a single chally 3 costs 6.7 mil a euro fighter 110mil… this is just a blag our army needs new entire regiments of personnel and equipment the navy needs at least a dozen extra escorts and subs the army needs modern theater air defense etc etc etc people have lost sight of a governments primary function, security of the state
There is imo, still an obscene amount of waste in MoD procurement. If spent well this 3bn could and should go a long way, not that I really expect it to…Ofc if it were up to me it would be a much larger boost!.
We need more govt owned manufacturing plants and research labs again. Bring back Royal Ordanance and Royal Aircraft Establishment! Privatisation of ALL capabilities has been a failure. When the priority is share price, long term planning goes out the window, value to customer goes out the window. Look how well france manages it with its part-state-owned enterprises.
Considering the MOD has a 16.9Bn deficit how much will get swallowed up in that and how much is actually likely to be spent on extra over and what has been planned? Nothing would be my guess.
It doesn’t have a shortfall, yet. That number was from the latest 10 year equipment plan for which the RN changed its basis of calculation. In contrast to the previous years plan, it included the full cost of T32, T83, MRSS, MROS and FAD, none of which have yet even reached final design stage.
Ummm…sorry, FAD?? Fleet (Air? Arctic? Antarctic? Auxiliary?) (Defence? Deployment?). Perhaps FSS? 🤔
Signed/
Clueless in the Colonies 😁
FAD sort of translated to T83.
But the tea leaves could still….
Understood, thanks.
I assume it means Fleet Air Defence.
That’s just my guess, though.
Yes, my first thought was that this might have been simply a trendy, transitory programme of the RN…😉
Should read FADS I think, Future Air Dominance System
It’s the system of system for naval air defence of which T83 is the main component.
Ahhh…thanks! 👍😊 Actually had seen that version of the acronym previously.
Future air dominance system. Linked to future T83 but not confined to it.
👍
Exactly.
You can’t have a budget hole when a budget line hasn’t been allocated to the spending.
If no allocation and no contracts are sign it is just a wish list.
In this case a wish list costed to high level only.
Thank you for that and please excuse my ignorance.
It’s also based on projects all going badly. The predicated shortfall is a range based on how badly the projects go plus exchange rates etc. It’s not as simple as stating there is a shortfall.
Agreed.
good news as long as it is spent and promoting UK industrial base, instead of depending too heavily on foreign equipment which gradually turns into a death spiral for local industry and know how.
Just watched the budget and when she said 2% cuts across nearly every dept my heart sank. But then she snuck this one in so I’ll try some sums 🤔
If 2024 Budget is £55.6 billion then an extra £2.9 billion is a 5.2% increase oa (not adjusted for inflation). If the £3 billion for Ukraine is external to the MOD budget then it’s actually IMHO not too bad. Health, Education, Transport and Defence all got a bump upwards.
I’m actually pleasantly surprised as I was expecting zero or a cut ! Still means the SDR is going to be “challenging”.
Now Everyone on UKDJ can scream about it not being enough, which it isn’t 🤷🏼♂️ but I’m a realist and it could have been way worse (see Cameron and Osborne for details).
Many believe that our Ukraine support is coming from the MoD budget, even though it should not be. If that is true then Reeves’ £2.9Bn ‘gift’ to MoD will go straight to Ukraine.
Perhaps restock what we have given away to others would be welcome as the weapons have proved to more than capable of the jobs wanted. Just need mass to make them worthwhile.
At least its not a cut as many expected.
But the MOD needs to spend smarter on what it buys.
Would be great to get some worthwhile uniforms not made in China that last no time at all compared to what we had. The RM’s went and got some good kit that meets their needs and high standards compared to what the rest have.
Happy if we spend that £2.9Bn on restocking for our armed forces.
I agree MoD needs to spend smarter. Far too much going for provision of a service provided by a middleman contrator, when it was formerly done in-house.
No it won’t, the women said £3 billion will be maintained indefinitely for Ukraine. That money was in last years budget so an increase of £2.9 billion can’t go to Ukraine or it would not be an increase.
The Ukraine money comes from government not the MOD but it can be counted against NATO spending of 2% of GDP.
Ukraine funding is why we are spending 2.3% of GDP on defence when the government is only committed to 2%.
Weren’t we spending 2.3% of GDP on defence even before the Ukraine war started, though?
No we were getting as low as 1.97%
I think its $2.93b from interest earned on frozen Russian assets.
OK. Thanks.
Hi Graham, I have re read her speech several times and I still can’t decide if it’s a rise to include the £3 billion for Ukraine or on top of that as well ! It’s the way it’s worded, I seriously think someone needs to ask her to clarify it.
I think it should be overseas aid myself 🤔
I agree that our support to Ukraine should come out of the FCDO budget. I hope it is. So that MoD genuinely gets the £2.9Bn for our own forces.
Will be interesting to hear how it will be spent as there are many contenders – building back stocks of missiles/combat supplies, replacing kit donated to UKR, boosting recruiting and retention, offsetting the Equipment Plan black hole, improving service housing, pay rise for RFA. So many options.
I agree, SDR will be challenging but atleast it’s being conducted against a background of an increasing budget that’s been long term protected instead of a cuts exercise dressed up as strategy.
We need to ask some pretty serious questions as well of the military. We spend a vast sum of nearly £60 billion a year, most of the legacy programs are out of the door, why do we still have so many budgeting issues.
Look what countrie like Finland achieve on 10% of our budget.
What does Finland achieve on 10% of our budget?
A standing army of less than 5k. A Navy that consists of 8 surface combatants none of which break the 500t mark.
We tend to get enamored by the Finnish mobilization plan, and their ability to call up forces for a defensive war of survival, but lets not kid ourselves about what they give up to achieve that plan.
They do have a whole shit load of mortars mind..pretty sure they have more mortars per head of population than any other nation on earth.
Because they’re cheap, easy to keep stored, and you need to provide indirect fires to a lot of relatively static defence forces. As I said, we love to look at Finland’s strengths and go “wow” but turn a blind eye at what they sacrifice to achieve it.
Indeed they are not ever doing anything expeditionary and need others to ensure their national interest globally…I suspect that is why in the end they made the move to NATO…if they ever had a spat with Russia, Russia could have formally undertake a longer range blockade and they would have struggled to do much about it. It would be a hard nation to attack and overrun with ground forces…but they had a weakness to a nation applying wider geostrategic pressure and sub war kinetic and none kinetic operations.
Finland is focussed on territorial national defence. We have a global role.
Good analysis there ABC.
Looking at the figures, as best one can work out, the core defence budget (i.e. omitting the Ukraine spend) will increase from £51.7bn to £54.6bn, a rise of 5.6%.
Pleasantly surprised by that, when most departments are having to take small reductions. It is a start.
With the Ukraine spend, which looks to work out at £3.76 bn, our defence spend, in NATO terms, is £58.36bn.
The total spend is likely some way below 2.3% of GDP. There are many guestimattes as to what 2024 GDP will be come end March next year. The best guess is £2688 bn. If so, it means that, after today’s increase, the core defence budget will increase from 1.92% to 2.03%, 0.4
less than previously reckoned.
The total spend, including Ukraine, will go from 2.06% to 2.17%.When you deduct the spiralling cost of our nuclear programme, it leaves us with a conventional defence spend way short of 2%.
The additional £2.9bn announced today is not there to buy more Wedgetails, UK air defence or other additional goodies. It is earmarked to pay for two things only, the pay rise award to the services and the replenishment of the weapons stockpile, which have been severely depleted due to transfers to Ukraine.
It is a reasonable amount of money to handle these two tasks. MOD will have to be very scrupulous in ensuring it goes where intended though, without bits being siphoned off to pay for other pet projects and budgetary black holes
Great post. You are right about how that £2.9bn is probably going to be spent.
Transport didn’t get a bump.
There was £500m to fix some of the potholes.
Better than nothing. They real news for the Armed Force’s will come early next year with the SDR.
No doubt all sucked up by Trident and replenishing ammunition stocks given to Ukraine.
Ukraine is where it’s doing the most good, if we have to choose just 1 place. But I think Reeves’ announcement for Ukraine and wider defence were 2 separate commitments anyway. I’d use it to fix the RFA issue and reinstate our E7 order to 5 units.
I’m crossing my fingers a Trump Presidency will bring that conflict to an end. The front lines are only slowly moving in one direction so right now its a money pit on all sides not to mention the horrific waste of life.
Trump’s plans to ‘end the conflict in 24 hours’, as he so often has said, is no doubt to side fully with his mate Putin and try to force Zelensky to accept a Russian-biased treaty.
JD Vance (and lets face it a Trump Presidency will probably mean a JD Vance presidency if he’s actually suffering from dementia) has publically stated that his position is that Ukraine must give up all occupied territories, become a “neutral” nation, and cease importing arms from the west.
A positive, and still people find a way to play it down.
She could have given nothing at all….
It’s extraordinary, it’s like people don’t actually listen to the news. Announced last night, this is to fund the pay rise and replenish stock given to Ukraine. It maintains funding at 2.3% of GDP.
Indeed. There are many projects underway and funded that will reach FOC by @ the end of the decade.( Ch3, Boxer, Ajax, new SPG, T31, T26, more F35 and of course AUKUS). So I struggle to see why another defence review is necessary. Whatever it decides, unless it is further cuts, wouldn’t make any difference for years. Whilst I expect that the budget will be sustained, I doubt that any increase will be big enough to change materially what is already in the pipeline.
Yes.
Any increases are limited and to niche targeted areas only.
2 more E7.
6 more A400
3 more T31 as a T32 or a B2.
That sort of thing.
We are not suddenly getting 500 Ch3, neither do we need that many.
Agree 100%, we don’t have the manpower either as the current youth don’t want to work hard or get dirty anymore and even bigger wages will not change that much.
Hmm?
No experience of youth not wanting to work here, majority of friends (not me) have side jobs on top of A levels and most discussing pay and when they can fit hours in.
Granted, it’s mostly working in Coop, but no sign of a “lazy generation” as some seem to fear.
Don’t worry. If you look back throughout history every generation makes the same complaints about “the current youth not wanting to get their hands dirty.”
The Cold Warriors wouldn’t shut up about Millennials being too soft to fight until suddenly they fought several wars in the middle east (much to the chagrin of the Cold Warriors who’d sat in the BAOR for their whole career).
If you look at 1939 there where plenty of old has beens who complained that the youth of the 30’s didn’t have the moral backbone to fight like the Lions of the trenches had.
Happens all the time. And they’re always proven wrong.
Indeed. there were articles in the DT all the time in the early 1990s from (mainly) ex Army and RM’s say the forces of today couldn’t do the Falklands again etc and then fast forward to 2001 onwards
Apparently there are records from Ancient Greece with elder statesmen in Athens complaining about the layabout youth in the city. Certainly not a new issue.
Hits differently when one of the people being talked down is you, though.
On the bright side, it gets better as you get older, and eventually you get to be the curmudgeon shouting about today’s youth at some point.
Is that what the mass immigration is for, to do the jobs our “lazy yoof” won’t do? The “even bigger” remark on military wages is telling too. You’re a retired welfare queen aren’t you?
From what I’ve read its retention that’s the issue. Plenty of recruits.
We could see another Pivot when it comes to Ajax and Boxer with a lot of rumours suggesting the Army wants a tracked IFV over Boxer. That would result in fewer Boxer orders and fresh order of Ares with an unmanned Turret.
It would need to be demonstrated as low risk by GDUK before any orders are placed around 2028/9
I’ll happily give up 6 more A400M is we can get a theatre level GBAD and ABM. Even just four or five batteries to deploy at division level and base at Faslane and Lossimouth
Yes, I’d make that switch as well.
Well it may be nice to get 200+ challenger 3s…that one would not surprise me if it happened. Because those CH3s are cheap as chips and a bit of an easy win. They really need to consider what IFV the British army can get cheap, APCs and mec infantry are not what’s needed for the armoured brigades.
I think we will see another T31 batch ( it’s not only needed it’s good union jobs and shows investment in economic growth).
E7 is a no brainer really
A400..I’m not sure on that one, we should but..
I don’t think we will see 6 MRSS, I would be putting my money on 4.
I’d happily accept the army continuing with six Boxer Battalions if it meant we got a 3rd Challenger Regiment.
Yes that would probably be a sacrifice worth having, going down to 2 challenger regiments is a really bad idea.
Well it may be nice to get 200+ challenger 3s…that one would not surprise me if it happened. Because those CH3s are cheap as chips and a bit of an easy win. They really need to consider what IFV the British army can get cheap, APCs and mec infantry are not what’s needed for the armoured brigades. I suspect the army is going to get a focus a way from expeditionary forces and a focus on heavy forces for the European theatre. I think we may see the loss of 11 brigade to facilitate this.
Navy wise, I think we will see another T31 batch ( it’s not only needed it’s good union jobs and shows investment in economic growth).
but I think this will be paid for by a reduction in the MRSS from 6 to 4.. in reality the RN has not shown itself to be able to operate or really need more than 4 amphibious vessel..if is 6 MRSS or more escorts I would think they will go for more escorts.
RAF wise
I think we will see some form of increases ground based air defence system. Ukraine has made it clear that any war with Russia will involve a lot of long range missile attacks.
meduim lift rotor..I think we will see a drop in numbers to a 1 to 1 replacement for Puma.
A400..I’m not sure on that one, we should but..I think they will want to focus any spare budget on the fast jet squadrons..I suspect they will do everything they can to have 10 front line fast jet squadrons, 7 typhoon and 3 F35 ( we should have 12…8 and 4).
Not sure if you saw my post to Graham the other day.
Apparently the Army are looking seriously at ARES as the IFV, with a corresponding reduction in the third Boxer tranche.
UKAFC reported this on X the other week.
I’m in agreement on your points and I’d take that right now.
Ares as an IFV, that would be pretty significant, I would vote for that one.
It was said that an external cannon ie RWS might be fitted rather than a crewed turret but it would be a real challenge to reconfigure ARES to take a 10-man AI section when it currently takes 6 men ie 2 crew and 4 dismounts. Would cost a lot to re-engineer and would take a lot of time. You would have to start by buying hundreds more ARES.
ARES, as in the Ajax APC variant without a turret? Or am I missing another platform with the same name?
I am very much in favour of using that ASCOD II base for our next IFV, after we’ve plowed so much money into it- not to mention the commonality and continued industry jobs, etc. But just wondering about the lack of turret? I’ve seen some unmanned ones these days, like an RWS with extra armour on- I would be for that as long as it’s beefy enough to take a CTAS 40 and (ideally) a box launcher for ATGM.
Yes, our ARES. Apparently the Army want to put a turret on it, with a 30mm. They would then use it as an IFV, but more, and reduce the future Boxer buy.
Interesting, I’d not heard this at all- good to see that they’re at least thinking about it. I don’t think we want to be reducing Boxer though, although I accept that the money has to be found somewhere.
Couple of observations:
I thought Ares just had room for 4-5 dismounts, which obviously isn’t close to enough for a section plus crew including the operator of the turret (I know, even Bradley and Warrior could only fit 7 dismounts, but that’s a lot better than 5). Turret and ammo will also influence this, even if Ajax’ ISTAR gear is pulled out (I assume the reason why they’re starting with Ares instead of Ajax).
Secondly, I get that 30 mm is more than sufficient. But we have a bunch of CTAS40s sitting around from WCSP, and I’m not a fan of maintaining 2 different calibres of autocannon. Would the WCSP turret be an option for this, save on some design etc? I presume the Ajax turret would be too bulky, what with all the ISTAR stuff in it.
I’ll keep an eye out for more information!
So the way I explained it elsewhere is that if i t ever happens it’s going to be a new sub-variant.
They’ll take the Ares base vehicle, strip the back out completely, reorganize it so it has three extra seats in the back (Ares currently has a Driver, Commander, Gunner, and 4 dismounts). They’ll then stick a RWS or uncrewed turret on top. The reason for 30mm is probably because fitting a new 30mm is easier than getting a 40mm gun onto Ares (although an uncrewed non-penetrating designed turret for 40mm does exist).
The reason they are starting with Ares rather than Ajax is because of the turret, less the ISTAR equipment. Both Ares and Ajax would need the back ripping out and redesigning, but for Ajax you’d also have to remove the turret…at which point you basically have an Ares if that makes sense?
WCSP turret is not an option. The problem with the Ajax turret is not that it’s “too bulky” it’s the Turret ring. The turret ring is the bit of the hull that supports the turret; in Ares/Ajax that ring is massive (because Ajax was designed to fit a 120mm. So big gun needs a big turret which in turn needs a big turret ring). The issue with that is that if you downsize to a 30mm, the turret still needs to be big to fit the turret ring, which means no space in the hull for troops.
You either need to redesign the hull to have a completely different turret ring (expensive, but you can use the WCSP turret) or get a non penetrating turret, or RWS that doesn’t need a turret ring (Less expensive but you need a new turret).
Thanks Dern, I hadn’t realised the turret ring was so large on Ajax as things go- that’s significant! Selecting Ares makes sense when it’s laid out like that.
The new uncrewed turrets that Kongsberg have put together for the US army, which can certainly take a 30 mm and TOW launcher at least, might be a good fit- as long as it’s non penetrating. I also think it’ll handle a 40 mm gun, and CTAS is smaller than most in terms of breech and suchlike, if I’m not mistaken. I’d rather go with that, seeing as we have the guns paid for, and I like the idea of commonality of supply in a warzone. Doesn’t one of the French vehicles have a 40 mm turret for CTAS40, or is that a crewed one?
Hi Joe
A lot of that tech specifics stuff is beyond me, but I see Dern has commented.
The reduction in Boxer isn’t from the first 600 or so, it’s the 400 later, or tranche 3, reduced to a few hundred to enable a higher ARES buy.
If you follow UKAFC and look on his Twitter feed a few weeks back it was all on there.
Thanks Daniele, I’ll take a look, although I do try and avoid Twitter where I can…
Glad to hear it’s not the “primary order”, although even the subsequent buys are needed vehicles in my view- there are a lot of options for modules that I think we’re going to need if we’re to have meaningful deployable forces in the environment we now find ourselves; major requirements for indirect precision fires, GBAD, infantry direct fire support, are ones that particularly spring to mind but aren’t (as far as I’m aware) all confirmed as modules on the buy-list.
I agree, by my understanding none of those are confirmed yet.
It’s like Drones, lots of talk and trials over and over, over many years, but no actual announcement or purchase.
E&TG(2Y) has put out a vid of them playing with ots of gizmos, gadgets and kit for the future, looked like at Copehill Down.
The army did the same when Strike was announced in 2015, and the same when FS was announced.
Will they EVER actually get on and buy this stuff?
It seems the future never arrives, and I find it frustrating.
True Warrior ‘could only fit 7 dismounts’ in the back but that was not a problem, as that was what was required. Veh Comdr dismounts as well as he is the section commander, so you get your 8-man dismounted section (two fire teams of 4).
BTW, Bradley M2 has only 6 dismounts in the back, not 7.
OG Bradley had 6 dismounts. M2A2 on wards has 7.
Thanks Dern for the detail.
The “only 7 dismounts” wasn’t particularly meant as a criticism- more as an observation compared to the standard 8-man section. But I stand corrected about the vehicle commander being section leader, so retract my statement. I didn’t realise that about the Bradley either!
Either way, adding space for 2-3 men and equipment, in and around a turret, would be a challenge on Ares I would expect. I know there are IFV variants on the ASCOD platform, I assume they’re a little longer than our version? As Dern mentioned, a non-penetrating unmanned turret or beefy RWS may help in the space department.
It’s still going to be a non-cost neutral change to the equivalent numbers of Boxer though, and I know you and I have had the conversation before that a tracked IFV simply isn’t in the plan for the Army at the moment. This is probably some very hopeful/optimistic Armoured officers having a bit of a thought exercise in barracks.
Dern mentioned that the M2A2 Bradley carries 7 dismounts whereas the original version had just 6.
There are several ways to get an IFV back into the armoured brigades. I wonder if converting ARES is the best (meaning fastest and cheapest and most effective in combat) approach. Alternatives might be:
1.to resurrect WCSP,
2.buy new or used CV90,
3.buy tracked Boxer with IFV mission module or
4.buy new or used Pizarro (ASCOD2).
5.buy surplus US M2A2 or later model Bradleys from US.
6.buy surplus used Marders from Germany.
Pros and cons with all of the above, of course.
I would suggest they focus on a small increase in personnel numbers across the services, improving accommodation and training facilities plus another uptick in pay. These would all help with recruitment and alleviate retention issues. The first no brainer is a competitive salary for the RFA and then get rid of Capita.
BTW the list is about right and I would suggest another 100 or so Ch3 would suffice.
The next stage is to secure funding for the future equipment programme and the output of the SDR, which needs to be a true defence needs review and not one whose results suit HM Treasury.
Given the current international climate I appreciate we are way off the pace in increasing our defence funding but a pathway to 2.5%+ over the next 5 years would be a great result for U.K. defence.
I have my fingers crossed.
Evening M8, have you read Ben Wallace’s comment on X ? He congratulates John Healey in getting an increase and goes on to blame repeated cuts by both Tory and Labour. A true Officer and Gentleman.
No. I’ll look for it though.
But none if the above mentioned kit will achieve anything in a land campaign. However more Chally 3 s are needed to sustain combat power in the event of attrition.
I very much suspect this is more about taking the time to analyse the threats..if you look at the last 14 years we have had more reviews than at any other time..that’s not really a reflection of the fact the Conservative Party loved reviews, it’s more about the complete toilet flush that has become the geopolitical and geostrategic picture. We are seeing profound changes in geostrategic pictures by region and the world geopolitical picture within a couple of years…essential every time the last conservative executive did a review it was out of date within a couple of years…simply put we are very likely in a timeline to a world wide conflagration not seen since the 1930s…it would not surprise me if we don’t get a review of the new one by 2028. Worlds a serious mess and the only thing people can really see at present is a vast array of ever changing risks.
My point was that so many projects are locked in with many running until 2030, that unless you are willing to raise the budget a lot, no review will make a material difference. Even if extra funding is agreed, it will take years for it to feed through to increased capability, as Germany has found.
well what you can do is redirect what you have to the threats you have…look at 11 brigade..is that now more or less useful than using the manpower to beef up the heavy brigades and mech brigades that may end up deterring Russian in Europe. There are a number of questions…the question of escort numbers…if they are going above 19 those orders need to be made sooner not later. Yes a lot of stuff will not be changes until later in the decade or early next decade..but that needs looking at now not at the end of the decade.
Also the optics..both Labour and the conservatives have stated they are moving spending to 2.5% GDP due to the threat…you cannot just Jack up the spending without a clear understanding of the threat you are reacting to…
I fear many Land programmes will still be running after 2030, such as RCH-155 and the last of the Boxers. ARES IFV, if it was approved, may not be fielded until after 2030.
Some other kit needs upgrading or replacing, but is not getting air time – CRARRV has now been in service for 36 years and has not been materially upgraded. Its armour protection is markedly below that of CR2/CR3.
A defence review is necessary because we have a new flavour of Government, but it should not take as long as this one is going to take.
Agree, honestly she could have announced defence spending was doubling and people would still be complaining.
No we wouldn’t but if she has just announced what was going to happen anyway nothing new has been acheived.
She could have raised it to 3% of GDP (around £75 billion) and people would still moan that it’s not 4 or 5%.
It needs to be raised to 4%, but 3% declared right now would be a massive win. Every year there is no significant increase in Defence spending is a comfort to our enemies. It’s a declaration to say our leadership has no understanding of and no stomach for Defence. If the US pulls away for whatever reason, it will be up to second rank countries, such as ourselves and France to provide leadership. Even if our government can step up at that point, we are sending signals right now that reduce our deterrence posture. We stand less chance of preventing the problem before it gets worse.
Labour has not even declared a date for a rise to 2.5%.
Agree a 5% increase in budget is actually better than I thought considering.
Side note:
Best botched insult of the year was directed at me.
Buddleja? Magnolia? 😆
I want a shrubbery!
Oo err.
Honestly, Moscow’s really skimping on the quality of their trolls these days.
Is this extra money or the £2.9 billion already planned by the Tories? Their budget forecast was for defence spending to move from £54.2 billion to £57.1 billion, coincidentally £ 2.9 billion. If there is no extra she has just annouced what was coming anyway..
Even maintaining a Conservative policy for defence is shocking. This is extremely good news.
Except as the OBR report pointed out they hadn’t actually funded it, so it was a worthless promise. It was a very sensible way to deliver an uplift, Labour has now funded it.
I have a funny feeling they may just follow through with all of that plan 🤔
Unfortunately for your argument the treasury itself actually confirms that the £2.9 billion for defence was actaully funded so my point is valid. This is NOT new money. Don’t believe me? Fine. Look it up for yourself. 😏
Easy to make unfunded plans when you know you don’t have to find the money.
Jim, please see my answer to ABC.. Cheers.
Without wanting to get too political, I’m not particularly an historic Labour supporter either: The Conservatives made a lot of commitments financially in the knowledge that they were deeply unlikely to actually have to deliver them. Some political commentators I read saw it as a way of setting the new Labour government up for a fall in order to get back in quicker. The fact that Reeves has worked out a way to meet the Tories’ planned increase should probably be commended, because I don’t think that Jeremey Hunt had any expectation of needing to actually deliver that when he committed to it.
At some point I’ve voted Consevative, Labour and Reform so you’re not alone Joe. If you’re talking about the defence money it was funded as I posted previously according to the Treasury itself so it’s not extra. She just announced what was going to happen anyway. As for the rest of the spend she has “solved the problem” by increasing taxes by £37 billion and borrowing another £40 billion. It’s going to hit everyones’ pay packet at some point.
I agree, we’re all going to be feeling it.
That said, as seems to be the cycle in this country, the Conservatives dismantled everything to the point that Labour are now having to do a big spend in order to re-build everything again- which is more expensive than simple maintenance. I don’t think what Reeves has done is unreasonable, if we expect to continue receiving the services we expect- I’m not sure what other options were available.
Unless of course we want to consider de-scoping certain parts of the state. Just using the NHS as an example, it provides a more comprehensive range of services than pretty much any other nationalised healthcare system that I am aware of for the level of tax we pay. Higher tax countries like the Nordics and suchlike may have better health services, but more comparably-taxed countries like France and Germany have split public/private systems. Personally, I think that’s the way forward, but it’ll take a political party with a monumental lack of desire for a second term who pushed that through.
While that may have been funded by the treasury, from what we’re hearing (not just from Labour either) was that there was an awful lot of stuff the Tories left unfunded in order to get headline bits like funding for the armed forces- so I would still applaud Reeves for making it work. I know there’s all this back and forth about how big that black hole was, especially around the public services pay, but at the same time I find it hard to argue that those workers weren’t due that raise.
The Tories were esponsible for a number of things but peopole forget that Johnson had to contend with Covid, a worldwide energy crisis and the war in Ukraine, almost as soon as soon as they were elected. The economy right through to the end was in a good state. It was there own infighting that brought them down.
I’m afraid that I can’t really agree with you on Reeves. I don’t trust her. Most of her budget and previoiusly announced financing was about the public sector and expecting the private sector to pay for it. My own company was nearly wiped out by Covid and we have spent three years getting back to half our original size. I am now faced with three tax rises in the very year that we have made our first profit. A charitable company I know,helping young people with abuse, housing and mental health issues is going to have to find at least another £92,000 nesxt year just to stand still.
£22 billion black hole? She knew about the shortfall in May and yet claimed to be surprised during the budget, and yet she has thrown £19 billion at the public sector in pay rises actually before the budget. Of the £22 billion of supposed new money for the NHS, £14 billion went in pay rises.
I will condemn the Tories (I certainly have on defence) but all I see coming are cuts from labour. Sorry, my friend but I am angry about the negativity this budget is already causing.😔
You’re not alone in feeling the pain, the company my wife owns was also battered by COVID and it’s been quite the road back out of that- we’re also not hopeful about the details of what the budget will bring from a personal impact perspective. Just to say, I’m not blind to, nor immune to the financial pain this is bringing.
That said, I can’t argue that those public sector pay rises were justified- if I had seen real drops in pay for as long as nurses and others have seen, I’d have found somewhere to work long ago. I’m not sure that there were any other options on that one.
I fully agree with you that she didn’t have to pretend that it was all a big surprise though, even the OBR has said that most of it was expected- even if the full scale of the shortfall wasn’t clear to them.
I think Labour hasn’t done themselves may favours in the sense of constraining themselves to certain routes for finding money to cover the shortfalls in government departments, meet Tory-imposed spending targets, and also to boost the economy further (yes, the economy has been growing under the Tories, very slowly, but almost exclusively in certain sectors that generally favour comparatively few in the finance and global services sectors rather than anyone else). They fell into the Tory trap of accepting that a country’s finances have to work on the same budget balancing rules as a household, and so their recourse for borrowing and other routes is massively constrained. By comparison, and especially after the 2008 crash and COVID and other items like that, most governments borrowed more and plowed it into infrastructure and other stuff- allowing the economy to recover better and then move on- rather than stagnate for a decade or so like ours did. Even the US, that bastion of hardcore capitalism (in truth only selectively), did this. I know that’s 15 years ago now, but it set the footings for the health of the economy when COVID hit, and also set the thinking of the public that borrowing is irresponsible- which is not always the case if you’re a stable economy like we are. The Tories used this to force Labour into limiting their options on raising funds to repair the departments that austerity had gutted to the point that they’re now beginning not to deliver what we expect of them.
So I’m frustrated by the way they’re limiting their own options and so inflicting that cost on us. But, at the same time, I’m fairly sure it’s a cost that needs paying from somewhere, no?
Sorry to hear about your wifes business. We are a couple of many sadly. Hopefully things will be alright for you.
My concern about the pay rises is that we are suppose to be getting defence, NHS and transport reviews, supposedly fot reform, in the new year which would have been the time to review wages. A promise of a pay review could have been made . Now she has spent £19 billion which is going to tie the hands of the reviews On the NHS a freeze on all admin. posts would have been more use. Admin and support (non medical) make up around sixty per cent of overall staff numbers.
I’m sorry, but for all thier faults I still don’t see how the Tories forced Labour into borrowing or taxing us for an extra £70 billion. It was a Labour decision. Spending on the NHS under the Tories was on a par with Blair/Brown, more with the spend on Covid; Defence was going to get a boost to 2.5 per cent. We were the sixth largest world economy; up to 2023 we had the highest growth in Europe next to Germany and one of the lowest unemploymnet rates.
Having said all this we shall have to wait and see of course but judging by the reaction to the budget, including by a large number of Labour back benchers, there are a lot of unhappy people out that..
Not good, not bad. A holding action really.
Hi guys, the fire at Barrow..any idea if it was an accident, sabotage or a drone strike?? Cheers
Maybe try the comment thread in that article?
I am very suspicious, is this because of inflation or on top of inflation? Does the money for Ukraine come out of a separate budget or the Defence Budget.
So that increase would be minus the increased national insurance costs?
Basically a freeze in defence spending in real terms. Inflation and pay increases will eat most of it. Better than cuts I suppose.
The £2.9 bn increase is to pay for two things, the new pay award to the services and not only replenishing but increasing our weapons stockpile, which was far too small anyway and has been further depleted by transfers to Ukraine.
So it is a useful and welcome increase.
It is enough for now, the big question will be if Ms Reeves can find some additional money for the SDSR next year. Given that every area of government is severely strapped for cash and she has clamouring voices around the cabinet table, I would be very happy if she was able to conjure up an incremental rise to 2.5% over the ten years to 2035. So about £1.5bn pa, plus inflation-proofing.
Nothing like enough of course, but we have to be realistic about what this great nation can afford, which is not a lot at the moment.
More or less as I thought. It’s a ‘staying still’ increase that pays for pay rises and to replace donated kit.
What the country can afford is highly subjective, it all comes down to priorities. At the moment there are several areas of spending the government prioritises over defence.
I think it is really the public that prioritises things, the governmet, of whatever hue, has to take account of voters’ needs.
It is not surprising that getting a working NHS, repairing crumbling schools, earning enough to cope with sky-high grocery, energy and assorted bills, etc., rate highest on the public’s agenda.
I personally think that Reeves and Healy did very well to squeeze out a 5% increase for defence. It could very easily have gone to a list of other seriously underfunded areas like prisons, courts, transport, farm subsidies, etc., etc.
My priority would be to rip up and then start again with liability laws, human rights, equality laws, planning and procurement thereby saving untold billions by making the private and public sector more efficient. Then recycle the savings into defence.
I had not seen that the £2.9bn was for those areas. Who said it?
I did read that the cost of the MOD pay rises would be footed by the treasury. I haven’t been able to find the article since.
That never happens. Pay award is always met from MoD budget.
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disappointed that Ukraine will recive a bigger bump than our own starved armed forces with depleted reserves having lost them to ukraine. now trump is back in how about a concerted effort to boost and bolster uk home defemce and offensive capability