Britain’s defence faces £2.5bn cuts, dwarfing aid to Ukraine

BRITAIN’S defence budget is on course for a £2.5billion annual cut in real terms, which is more than the value of all UK military aid sent to Ukraine this year.

The House of Commons Library estimated that a previously expected £600million drop in real terms spending is due to quadruple by 2025, based on public sector inflation forecasts by the Institute for Fiscal Studies (IFS).

The disclosure came amid growing calls from Tory MPs for Jeremy Hunt, the Chancellor, to boost defence spending to 3 per cent of GDP by 2030 – a target advocated by Liz Truss during her time as prime minister, but yet to be confirmed by her successor, Rishi Sunak.

Mr Sunak has described the 3 per cent target as “arbitrary”. He is expected to avoid short-term funding increases above the spending plan set out in 2021.

A spokesman for the Prime Minister said: “That is something that would need to be set out by the Chancellor at a future fiscal event.”

On Friday, The Daily Telegraph revealed that the Treasury expected the defence budget to face real-terms cuts until 2026. Now Commons library estimates, commissioned by the Liberal Democrats, suggest that those realterms cuts will reach £2.5bn a year by the 2024-25 financial year.

Tobias Ellwood, chairman of the Commons defence committee said: “You reduce spending in real terms at your economic peril. It isn’t just about protecting our own interests, it’s also about the leadership role we aspire to play. If we want other Nato countries to follow our lead that requires greater investment in defence.”