Categories
-Top News London News UK News

Defence spending to increase by £52bn

Wallace says the military is going to grow as a result of the spending increase which he said has come after decades of “defending against cuts or reconciling cuts with modern fighting”…reports Asian Lite News

Ben Wallace has said Britain will increase the size of its armed forces spending by at least £52 billion in response to Russian aggression.

In his first interview since Liz Truss entered No 10, Ben Wallace confirmed the new Prime Minister is sticking to her campaign promise of increasing defence spending by three per cent.

Wallace said the military is “actually going to grow” as a result of the spending increase which he said has come after decades of “defending against cuts or reconciling cuts with modern fighting”.

He added the pledge amounted to an annual defence budget of about £100 billion by 2030 – an increase of £52 billion on the current sum which the Defence Secretary called “huge”.

He went on to praise Truss for the funding boost and also hit out at former chancellor Rishi Sunak and the Treasury over its “corporate raid” of the armed forces since the 1990s.

“To the point of Rishi’s Treasury trying to stipulate the size of the Army,” Wallace added.

“My department has been so used to 30 or 40 years of defending against cuts or reconciling cuts with modern fighting, they’re going to have to get used to a completely different culture, which is we are actually going to grow, we’re going to actually change.”

The Defence Secretary was reappointed to the role after backing Truss in the Tory leadership contest – a stance he took when Sunak failed to heed his requests in the 2021 Integrated Review (IR) of defence and security.

“The reason I supported Liz Truss was that the risks we were prepared to tolerate in the middle of the decade are not risks I want to tolerate anymore in light of Russian aggression,” Wallace said.

“There are certain risks we can’t really take anymore. And that’s why I wrote to the Chancellor last March to say, the stuff that we didn’t get in the IR that we’d asked for, we do need it.”

With Kwasi Kwarteng now at the helm of the Government’s purse strings, Wallace seemed to imply the relationship between the two departments would be much more harmonious.

“The reality is we will be working with the Treasury to ensure we have a budget that grows to meet the threat and our ambitions,” he said.

“Kwasi is going to be a great, open Chancellor… He’s not going to shut the door to Number 11 and hide behind it.”

It comes after the Prime Minister repeated her campaign promise to spend three per cent of GDP on defence by 2030 to fellow world leaders at the UN General Assembly in New York.

Shortly before leaving for the US, Truss revealed she had commissioned an update to the IR which was published in March 2021. Unveiled by Boris Johnson, it had seen the size of the Army reduced by 9,500 and a third of its ranks scrapped.

The update, which is expected to be published by the end of 2022, will be led by the PM’s special adviser for foreign affairs and defence, Professor John Bew.

In a statement which mostly focused on her UN speech, Downing Street also revealed a “refreshed strategy” of the IR “will ensure we are investing in the strategic capabilities and alliances we need to stand firm against coercion from authoritarian powers like Russia and China”.

ALSO READ-Truss plans to loosen immigration rules 

Categories
-Top News UK News

Budget maps out return to higher foreign aid spending

That more upbeat assessment also allowed the government to predict it would be able to restore aid spending in 2024/2025 because the fiscal tests it had set for doing so would be met by then – earlier than previously forecast…reports Asian Lite News.

Britain’s spending on foreign aid should return to 0.7% of economic output by 2024/25, finance minister Rishi Sunak said on Wednesday, having temporarily ditched that target last year to help pay for the government’s pandemic response.

Prime Minister Boris Johnson has faced heavy criticism of the decision to cut aid spending to 0.5% of GDP, including from some within his own Conservative Party who said it undermined Britain’s global image at a time when it was trying to build new post-Brexit alliances.

Official budget forecasts on Wednesday showed the British economy bouncing back from Covid-19 more strongly than expected, allowing Sunak to announce billions of pounds of tax cuts and new public spending.

That more upbeat assessment also allowed the government to predict it would be able to restore aid spending in 2024/2025 because the fiscal tests it had set for doing so would be met by then – earlier than previously forecast.

The test for returning to 0.7% is that “on a sustainable basis the government is not borrowing for day-to-day spending and underlying debt is falling.” The government’s spending plans set aside 5.2 billion pounds in 2024/25 to pay for the increase, but that remains conditional on the tests continuing to be met until that time.

Campaigners raised concerns about a lack of detail around how the money would be spent – fearing Britain would try to broaden the classification of what counts as aid, resulting in less money going to where they say it is needed.

“Having already shrunk the UKs support for development, implementing further cuts by stealth would exacerbate the challenges of climate and COVID already faced by developing countries,” said Amy Dodd, Director of Development Finance Policy at campaign group ONE.

The budget documents set out in broad terms a shift in British aid spending towards bilateral aid programmes – part of recently-appointed foreign minister Liz Truss’s stated aim to tie her foreign policy more closely with Britain’s commercial, defence and security interests.

It did not set out details of any reduction in funding to multilateral agencies.

ALSO READ-Sunak delivers Budget for stronger economy

READ MORE-All eyes on Sunak ahead of Budget 2021