Rachel Reeves might be forced to lift up to 30 billion pounds via Tax growth Or the means to cut as a chancellor strives to satisfy the pledge on reinforcement Defense consumptionEconomist claimed.
The government promised to increase defense Consumption at 2.5 percent of GDP until 2027. and has “ambition” – but there are no solid obligations – to raise it to 3 percent in the next parliament, after 2029. Years.
But the UK Nato The allies are also expected to shoot for a fresh target of 3.5 percent, with the head of the Association Mark Rutte, which is pushed for the “dramatic increase” of 5 percent – who called Donald Trump – which were also called Donald Adump.
And sir Keir Starmer this week vowed that Britain “” would be ready to fight, armor “ as a Long Expected Defense Review He called for big upgrades to the Great Britain Army.
While the main proposals are based on current spending conditions for 2027. and the following parliament warned that “while living in such turbulent times may need faster” on increasing defense abilities in the UK.
Michael Saunders, senior economic advisor on Oxford Economics Counseling, suggested that the government may take steps toward this In the next Budget of the Chancellor.
“In order to establish a more vertical path to defensive consumption” next to 3 percent “next decade, the government may decide in the autumn budget that additional consumption in gender is to be added,” Mr. Saunders said.
“It is not difficult to see the pressure for additional fiscal tightening of 15 billion pounds to 30 billion pounds,” he said Telegraph. Fiscal tightening includes or collecting taxes or cutting government spending.
Earlier this week, Paul Johnson, director Institute for Fiscal Studies (IFS), also warned the only way to pay the increased defense budget would be through “Chunky tax rises” as a government intervention with other key areas of public spending.
Times said, “You really have to ask that question, what the choices you will do?
According to IFS, hitting the target of 3 percent until 2030. years would require an additional 17 billion kilograms between now and then it is yet to be calculated.
Sir Keir said earlier that increasing the defense consumption to 2.5 percent meant “spending 13.4 billion pounds more on defense every year since 2027”.
The Budgetary Responsibility Office also estimated that reaching 3 percent of the next parliament cost an additional 17.3 billion pounds in 2029-30.
Speaking in parliament as the review of the defense presented this week, LIB Maguire Defense spokesman: “Set we still have no answer to the vital question:” Where does the money come from? “The government overturned several times to 3 percent.”
Tuesday Secretary of Defense John Healey Failed to rule out the tax rise to make Britain “War ready” And he insisted that he would be “100 percent more confident”, 3 percent of the target will be filled – but he fought to say that it would pay.
Came as defense sources reported to expect that Britain He will be compelled to apply to the goal to send defense to 3.5 percent to 2035. years at NATO summit later this month in the offer of the US president.