Spending Review: Biggest increase in Defence investment confirmed

Land November 25, 2020

The Chancellor, Rishi Sunak, has revealed the government’s spending plans for the coming year, including the biggest investment in defence spending for 30 years.

The Chancellor delivered his Spending Review to the House of Commons and confirmed the Prime Minister’s announcement last week of the Government’s £24 billion investment in defence.

Mr Sunak described the increase as “the biggest sustained increase in 30 years, allowing us to provide security not just for our country but around the world.”

The major headlines on this increase in defence spending were already made last week by Prime Minister, Boris Johnson, as he set out a £16.5 billion increase above the government’s manifesto defence investment commitment over four years.

The original commitment pledged to increase defence spending by 0.5% above the inflation rate, which is currently at 0.7%, for every year of the current Parliament. This is projected to be an overall cash increase of £24.1 billion over four years compared to last year’s budget.

The increase will cement the UK’s position as the largest defence spender in Europe and the second largest in NATO.

Speaking in his announcement last week, Mr Johnson, said: “I have taken this decision in the teeth of the pandemic because the defence of the realm must come first.

“The international situation is more perilous and more intensely competitive than at any time since the Cold War and Britain must be true to our history and stand alongside our allies. To achieve this we need to upgrade our capabilities across the board.

“This is our chance to end the era of retreat, transform our Armed Forces, bolster our global influence, unite and level up our country, pioneer new technology and defend our people and way of life.”

The commitment will allow the Government to invest in cutting-edge technology, positioning the UK as a global leader in domains such as cyber and space and addressing weaknesses in the UK’s defence arsenal.

To support these advancements, the Prime Minister announced a new agency dedicated to Artificial Intelligence, the creation of a National Cyber Force and a new ‘Space Command’, capable of launching its first rocket in 2022.

This will be underpinned by a record investment of at least £1.5 billion extra and £5.8 billion total on military research and development and a commitment to invest further in the Future Combat Air System.

These projects are expected to create up to 10,000 thousand jobs annually across the UK, harnessing the UK’s skills in construction and science and providing a much-needed boost to those industries in the coming decades.

Commenting on the funding pledge, Rob Bassett Cross, CEO of UK software company, Adarga, said: “This is an incredibly exciting and important pledge that will enable the Defence Secretary to fulfil the pioneering approach he has set out in the Integrated Operating Concept. Most importantly, it will enable the MoD to leverage the UK’s world leading Data Science and Software Engineering talent, to not only help meet the nature of threats now presented in an era of persistent competition, but to benefit the security and prosperity of the UK as a whole.