Boris Johnson has signaled a significant increase in the UK defense budget to 2.5% of GDP by the end of the decade, raising questions about his commitment to tax cuts as a NATO summit dominated by the conflict in Ukraine came to a close in Madrid.
“We need to invest for the long term in vital capabilities such as future combat aviation while adapting to a more dangerous and more competitive world,” the prime minister told a news conference.
“The logical conclusion of the investments we propose to make, these decisions, is that we will reach 2.5% of GDP for defense by the end of the decade.
Downing Street insisted that Johnson’s remarks did not constitute a concrete promise, with any formal decisions left for the future; however, there has been a push from Defense Secretary Ben Wallace for more resources beyond the current spending round, which ends in 2024-25.
After Johnson’s announcement, a source close to the defense secretary said Wallace “has always been clear that as the threat changes, so must defense spending.”
Defense sources said the decision would mean a total budget of £ 74.5 billion in 2029-30 and a cumulative additional £ 55.1 billion to reach 2.5% in 2030.
With many Conservative backbenchers pushing for the government to cut taxes, the announcement raises questions about where Johnson’s priorities lie – and what bid the Tories will make at the next election on tax and spending.
Thorsten Bell, director of the Resolution Foundation, said: “If we’re going to get to 2.5% permanently, then you’re talking about a significant change in what the state is doing. In the long run, we were able to grow our welfare state without raising taxes by shrinking the military. If we want to turn the tide on that, then you won’t be able to turn the NHS around either and tax will come down significantly.”
Johnson plans to make a joint speech with Chancellor Rishi Sunak in the coming weeks, setting out how the pair see the UK economy amid rising inflation.
At a press conference concluding the nine-day trip, during which the prime minister also attended the British Community summit in Rwanda and the G-7 summit in southern Germany, Johnson said Vladimir Putin had succeeded in uniting the West against Russia.
He said there was “strong unanimity” in NATO and the G7, but the case for supporting Ukraine needed to be made throughout the international community. He said he had heard “other voices, some of which I think are misunderstood about what is really happening and who is really to blame, as well as jumps in fuel prices, misunderstood what NATO really is.”
With food and fuel prices rising at home, Johnson was asked if there was a risk of consumers suffering from “fatigue” in Ukraine as the cost of living crisis deepens. He replied that “the importance of the price of freedom is that it is always worth paying.”
But Labor said the prime minister must take some of the responsibility for falling living standards. James Murray, shadow financial secretary at the Treasury, said: “Of course we must do everything we can to support Ukraine as Russia’s aggression continues.
“But the Tories have only themselves to blame for a decade of stagnant wages, low growth, higher taxes and poor performance. They have misled the state and are looking for all kinds of excuses instead of fixing the problems they created.
Sign up for First Edition, our free daily newsletter – every weekday morning at 7am BST
At the press conference, Johnson said that NATO must offer a guarantee of Ukraine’s security: that no future attack can be predicted.
“This is the first stage and this is the position we want to reach. And I think that will be a very effective solution. Then there might be a further row about Nato, but that would be my interim solution.” Earlier, Downing Street announced it would almost double the UK’s commitment to military support for Ukraine with an extra £1 billion.
However, the announcement prompted a backlash from the Welsh Government after it emerged that £95m would come from the devolved Scottish and Welsh budgets. Welsh Chancellor of the Exchequer Rebecca Evans said the move was “worrying and potentially divisive”.
Add Comment