DEFENCE SPENDING

Intro: Why do we still send millions to China when we desperately need that money to defend ourselves against countries like… China?

WHEREVER you look, Britain’s adversaries are on the offensive. Russian hegemony and aggression shows no sign of abating. China’s military jets breach Taiwan’s airspace almost on a daily basis, and with its unprecedented defence spending, Beijing’s ambitions evidently stretch further. Iran’s proxies attack British ships in the Red Sea while Tehran is on the verge of gaining nuclear weapon capability. The security threats we face are the greatest in a generation.

In geopolitics, the strong do what they can and the weak suffer what they must. And the UK, hands meekly by its side, is yet to muster any credible response. Despite a recent increase in spending, our Armed Forces are still reeling from 30 years of cuts and disastrous unwinnable wars that have steadily eroded our conventional capability. We are shockingly under-prepared for this more contested world.

At the outbreak of the Falkland War in 1982, the Royal Navy had 43 frigates and 12 destroyers. It now has 13 and six respectively.

Russia regularly deploys spy ships to tamper with our undersea cables, yet neither of the two specialist ships needed to protect them have materialised, despite being announced in 2021.

The British Army has shrunk to its smallest size since the Napoleonic era. Of serious concern, there is a £17billion black hole in the Ministry of Defence’s ten-year procurement plan. By some estimates, if Russia invaded a NATO member – a very real and distinct possibility – our stockpile of ammunition would last just eight days.

Most scandalously, the foundations of our defence, our Trident nuclear deterrent, has been appallingly neglected. Just two of the four submarines that deliver our continuous at sea deterrent are functional. They are so stretched that our Vanguard submarines are being sent on longer deployments than ever before. Submariners now have to spend five months continuously at sea – three months more than in the past. The next generation of Dreadnought submarines set to replace our old and creaking fleet is well behind schedule.

The dangerous and humiliating collapse of our nuclear deterrent is a catastrophe waiting to happen unless we urgently grip this crisis. A reckoning is inescapable.

The cost of sustaining Trident is cannibalising the rest of the UK military budget. We have no choice but to increase defence spending to three per cent of GDP to deliver the uplift we need to defend ourselves. If Greece and Poland can do it, why is it beyond the UK’s reach? Most in Parliament agree; that’s the straightforward part.

What’s much harder to explain is how to fund this increase when money is tight. Hard trade-offs will need to follow.

Strong defence rests upon a strong economy that can fund military upgrades. To provide the type of defence we need the UK will need to relentlessly pursue pro-growth, supply-side reforms. This will include liberalising planning to build more affordable homes, roads and factories, reforming welfare to get abled bodied people back into work, and cutting regulation that stifles entrepreneurs and small firms.

We cannot continue shovelling more money into increasingly bloated public services. The UK must drive through radical reforms. The security of a nation depends on having a strong military capability.

Strong economic growth will not appear overnight. We cannot wait until tomorrow to tackle today’s crisis. The choices are stark: either taxes are raised hitting an already squeezed middle class, borrow more upon the trillions we already have as public debt, or divert spending from elsewhere.

We mustn’t add to the national debt with interest payments at already astronomical levels, nor increase taxes when the tax burden is at an unacceptable high. Neither should we divert existing spending on the NHS or policing.

Instead, we should cut the foreign aid budget, and redirect that money to defence. While the aid budget does provide vital resources for alleviating extreme poverty that we should continue to support, a significant chunk of our “development” spend is incoherent, wasteful, and not necessary. It’s beyond ludicrous that we send hundreds of millions of pounds to nuclear powers China, India, and Pakistan.

Almost a third of our foreign aid budget goes on the ballooning costs of supporting asylum-seekers in the UK. If we ended the abuse of the system by economic migrants and closed the farcical asylum hotels, billions of pounds could be freed.

Another third goes to multinational organisations such as the UN and World Bank. An estimated 15 per cent of that aid is spent on managing humanitarian crises, the rest we have little control over.

Only ten per cent of the total expended by the Foreign Office on aid goes specifically and directly to deal with humanitarian emergencies. Other uses of taxpayers’ money include nebulous spending on “open societies” and “research and technology”.

Halving the aid budget would free about £7billion a year and immediately push defence spending above 2.5 per cent of GDP. When growth returns, or a crisis unfolds, we could make carefully targeted increases in overseas aid spending.

In a world of difficult choices, we should view our contribution to global peace and security as primarily through hard power and free trade. After all, the expansion of global commerce has been the biggest alleviator of extreme poverty.

There’s an argument, too, that we should also bring back “patriot bonds” which enabled citizens to invest in their security during the World Wars. We should stop guilting City investors out of putting money into our defence industry through warped environmental, social, and governance regulations. Instead, they should be encouraged to support British manufacturing jobs, and our military.

We need to continue reforming our defence procurement systems to ensure taxpayers’ money goes much further and bring an end to the indignity of the MoD having to beg the Treasury for money every year. Nonetheless, billions could be saved in procurement efficiencies if proper structural reform was carried out.

In the words of Churchill, we appear “decided only to be undecided, resolved to be irresolute, adamant for drift”. If we continue to dodge the difficult political decisions that need to be made, they will only come back as greater crises in the future.