Tag Archives: defence spending

We need a tax rise to fund additional defence spending 

I am an “Orange Book”  Lib Dem – I think we should have taxes as low as possible because people make the best decisions about how to spend their own money. That doesn’t of course mean that we don’t need taxes – there are lots of things the state needs to do to ensure everyone a decent society – and   tax as a % of GDP is currently a Post war high. 

But it’s very clear that our failure to adequately fund our Defences is putting our future as a safe, democratic nation at risk. John Healey’s resignation letter could hardly be clearer: 

You   spelled out the threats last week: “It is our intelligence assessment, and the assessment of other countries in Nato, that there could be an attack by Russia on Nato as soon as 2030. 

And he says the proposed backloaded plan 

falls well short of what is required for defence and the country at this dangerous time

Ed Davey has called for an extra £20bn to be funded via ‘Defence Bonds’ but there is no clarity  how these differ from any other Government borrowing nor does it seem sensible to add yet further to the UK’s massive debts. 

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11 June 2025 – today’s Spending Review press releases

  • “Smoke and mirrors” spending review could leave a blackhole for social care
  • Police funding short-fall as families face council tax bombshell to pick up the tab
  • Spending review: Reeves has put farmers “at the back of the Treasury queue”
  • Welsh rail funding announcement – Wales getting the scraps again
  • Lib Dems comment on defence, Acorn, supercomputer in spending review

“Smoke and mirrors” spending review could leave a blackhole for social care

Responding to the spending review, Liberal Democrat Treasury spokesperson Daisy Cooper MP said:

This spending review was a missed opportunity to repair the damage done by the Conservatives and finally deliver on the promise of change.

Behind the smoke and mirrors is a potential blackhole for social care as local government budgets remain at breaking point. Putting more money into the NHS without fixing social care is like pouring water into a leaky bucket.

The Chancellor must also raise her ambition for the country and boost growth through a much closer trade deal with the EU. That’s the best way to improve people’s living standards and unlock billions of pounds more for our public services.

Police funding short-fall as families face council tax bombshell to pick up the tab

The Government has said that the ‘police core spending power’ increases assumes rises in the PCC council tax precept in order to fund it. It means people will be left to pick up the tab in order to fund increases in police spending with the Government refusing to cover the costs.

Liberal Democrat Home Affairs spokesperson Lisa Smart MP said:

The Government is relying on a hidden council tax bombshell to fund their half-hearted rise in police funding as they pass the buck to local families.

After frontline policing was neglected for years under the Conservatives, local communities deserve better than this sleight of hand.

The Government must put more bobbies on the beat, with the proper funding to make it happen. Liberal Democrats will keep pushing for the proper neighbourhood policing our communities deserve.

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2 June 2025 – today’s Federal press releases

  • Davey on Strategic Defence Review: get to 3% faster and reverse troop cuts
  • Submarine announcement could be “damp squib” without funding ambition – Lib Dems
  • Davey on Starmer interview: “concerning lack of urgency”
  • Starmer’s comments on Winter Fuel U-turn shows “the right hand doesn’t know what the left hand is doing”
  • Revealed: Armed forces have shrunk by 2,000 since Labour Government elected

Davey on Strategic Defence Review: get to 3% faster and reverse troop cuts

  • Ed Davey brands 2034 target for 3% defence spending as “far too late” and urges cross-party talks to “move faster”.
  • Lib Dems press for full reversal of Conservatives’ troop cuts as essential step.

Liberal Democrat Leader Ed Davey has said that “page one” of the Review must include a cast-iron commitment to “boost defence spending to 3% of GDP as soon as possible”.

He said that the 2034 timeline set out by John Healey was “far too late” and showed “a complete lack of urgency” from the Government. The Liberal Democrats have urged cross-party talks to move faster given the threats faced with war on the continent.

The Liberal Democrats first called for a clear roadmap to 3% in January.

The Liberal Democrats are also calling for the Government to commit to a full reversal of the Conservatives’ cut of 10,000 troops in today’s Strategic Defence Review, adding that this is essential to deliver for Britain’s security in an increasingly unstable world.

Liberal Democrat Leader Ed Davey said:

With Putin waging war, Trump undermining NATO and conflicts raging, the Strategic Defence Review must deliver for our armed forces and for Britain’s security in an increasingly unstable world. Anything less would be a dereliction of duty.

Page one of the Review must include a firm commitment to boost defence spending to 3% of GDP as soon as possible. 2034 is far too late given the threats we face, and shows a complete lack of urgency. I urge the Prime Minister to organise cross-party talks to move faster to 3% to keep our nation safe.

Submarine announcement could be “damp squib” without funding ambition – Lib Dems

Responding to the Government’s announcement that the UK will build up to 12 new attack submarines, Liberal Democrat Defence Spokesperson Helen Maguire said:

This signals absolutely the right intent about the need to bolster the UK’s defences in the face of Putin’s imperialism and Trump’s unreliability.

But this must come with a concrete commitment and detail on full funding. Labour’s mere ‘ambition’ rather than commitment to reach 3% of GDP on defence leaves serious questions about whether the money for these projects will actually be forthcoming. The 2034 timeline suggests a worrying lack of urgency from the Government.

Unless Labour commits to holding cross-party talks on how to reach 3% much more rapidly than the mid-2030s, this announcement risks becoming a damp squib.

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Tom Arms’ World Review

Germany

Europe’s largest economy and largest population has lurched to the right. Friedrich Merz is on the conservative wing of the right of centre Christian Democratic Union (CDU). The Social Democratic Party (SPD) has been relegated to the number three slot for the first in post-war German history. But, more importantly, the far-right Alternativ fur Deutschland (AFD) is now firmly entrenched in the number two position.

Electoral success such as that enjoyed by the AfD in last weekend’s federal elections would normally ensure a place in a coalition government. Not in Germany, the mainstream parties have agreed to a firewall between themselves and the AfD that prohibits political cooperation between themselves and the AfD.

It was this firewall that was recently attacked as “undemocratic” by US Vice President JD Vance at the Munich Security Conference.

But then America does not have the burden of a Nazi past which many Germans fear the AfD threatens to resurrect. It favours remigration which many interpret as a mass deportation of immigrants. It is Euro-sceptic; anti-LGBTQ; pro-Russian; opposes sending military aid to Ukraine and is ambivalent about Germany’s Nazi past. Germany’s Committee for the Protection of the Constitution has designated the AfD as an “extremist right-wing” organisation which means it is being closely monitored by the police and security services.

But the AfD garnered 20.8 percent of the vote—double what it won in the previous federal election. The party—or at least its policies—cannot be disregarded, especially its position on immigration.

The traditional German mainstream parties—CDU/CSU, FDP, SPD and Greens—have tended to deal with the immigration issue by ignoring it. In the case of the CDU, Angela Merkel went further and declared that Germany had a moral responsibility to help refugees and in 2015 admitted more than a million and laid the foundations of a backlash.

The new soon-to-be Chancellor Merz is determined to win back AfD supporters by stealing some of their clothes and introducing tough anti-immigrant legislation.

The difficulty is that the AfD has positioned itself as the only party willing to talk about immigration and propose radical action to tackle the perceived problem. If Merz and the CDU position themselves in this space, they risk being perceived as a less authentic version of the AfD. Voters are convinced that the AfD cares passionately about limiting immigration. They may be less convinced that it is a genuine priority of the CDU.

United Kingdom

The famed British Welfare State is threatened by the American withdrawal from Europe and the resultant increase in defense spending.

In fact, social spending belts across Europe will need to tighten as money is poured into missiles, drones, tanks and howitzer shells to protect Western Europe from the Russian bear.

This week, British Prime Minister Sir Keir Starmer, announced that he was cutting overseas aid from 0.5 percent to 0.3 percent to pay for an increase in defense spending from 2.3 to 2.5 percent by 2027 and three percent by the end of the decade.

The cuts in aid will put $15 billion in the British exchequer which is enough to fund the increased spending up to 2.5 percent but not enough to go all the way to three percent. And, the fact is, that three percent is unlikely to be enough. American officials are talking about five percent across Europe if they want to keep Donald Trump happy and in NATO. And if the US abandons Europe as feared than defense costs will be much, much higher.

Britain, devotes 25 percent of GDP on welfare spending and another 10 percent of GDP on the NHS. Other European countries spend between 25 percent and 30 percent on social welfare. Funding structures for health services varies.

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The price of peace: Budgeting for a secure future

History offers a sobering lesson. Winston Churchill warned of the perils of underinvestment in defence long before the threat of Nazi aggression materialized. His insistence on prioritising military strength, though initially disregarded, ultimately underscored a simple truth: a nation must be prepared to protect itself if it is to safeguard its values and its future. Today, we stand at a similar crossroads.

Recent polling from YouGov reveals something both encouraging and challenging for us as Liberal Democrats. Our supporters show a striking commitment to the cause: 42% strongly agree that we should continue providing military assistance to Ukraine—the highest among all political parties. Seventy percent back the idea of British peacemakers being deployed to Ukraine, and 57% believe that our defence spending should be nudged upward from 2.3% to 3%. These figures are a clear nod to our belief that supporting Ukraine is not just a moral duty but a strategic imperative. It is a vote of confidence in the values that have guided us through turbulent times.

Yet, even as these numbers celebrate our commitment to international security, a contradiction emerges. A significant 44% of respondents, the highest of any political party, insist that maintaining public services should take precedence—even if that means defence spending cannot be increased. This division is not just a statistic—it is a reminder that peace, however desirable, comes at a price.

This poll lays bare a tension that is as old as democracy itself: balancing the immediate needs of our citizens with the long-term necessities of national security. History teaches us that neglecting defence can leave a nation vulnerable. Churchill’s era was a stark lesson; ignoring the call for robust defence spending had dire consequences. Today, the price of peace must be weighed with the same seriousness. While we cherish our public services, we cannot ignore the imperative to safeguard our nation and its allies.

Some might argue that there’s no room for increased expenditure without impacting vital public services. Yet, the very strength of our public institutions depends on a secure and stable environment. Our current political debate—even within our own ranks—echoes a familiar refrain: the challenge of raising funds without stifling growth. Recent criticisms of the Labour government’s stance, which leaves little fiscal flexibility by refusing to adjust major taxes, further underscore this conundrum.

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We should be spending 4% of GDP on defence

As Liberal Democrats our first task is to keep our society as fair, free and open as we can.

This society is threatened by a more aggressive Russia and a less reliable USA. This threat has to be right at the top of our thinking. The external environment has changed a lot and will require us to spend more on defence.

Determining how much more should be based on what it will cost to meet the threats we face.  It shouldn’t be based on what Rachel Reeves thinks we can afford in order to balance the books, or on what we spend now plus a little bit, or on what Donald Trump tells us. We need to defend the country, rather than make a spreadsheet add up.

The currency for the debate has been defence spend as a % of GDP. This isn’t a good way of working out what we need, but is a helpful shorthand for the debate. In 2024 this was 2.3%, and our spring conference motion on The UK’s Response to Trump urges the government to set a timetable to get this to 2.5% – a task the government is already committed to. Kemi Badenoch said this week that she would love to be able to get to 3% but that the party couldn’t ‘make the numbers work’ – the spreadsheet again. Reform set a target of 3% within 6 years in their 2024 election manifesto.

None of this sounds enough. There is ample evidence that the current defence budget is not sufficient even to support yesterday’s needs. The threat has increased and the support from across the Atlantic is decreasing. When we last faced an aggressive Russia in the 70’s and 80’s, we were spending just over 4% of GDP on defence. And that was with a supportive USA.  It is hard to see why the requirement would be less than this now.

This is a substantial increase – around £45bn a year. But it is likely to be the price of freedom.  After allowing for inflation, GDP per head today is roughly twice what it was in 1980, and we were able to afford this level of spend then.  There is pressure on public finances but we cannot let this stop us having the right conversation and making the right choices.

Supply chain and other constraints stop an immediate increase to this level of spend. But lead times are long and we need to commit to a plan quickly (and pray for breathing space in the meantime).

Somebody needs to call this out. The government has hemmed itself in to a narrative that is all about balancing the books. The Tories aren’t stepping up to the plate; they are still a shower.  And Reform is in hock to Trump and inconsistent on Putin.

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Tax increases needed to counter Trump’s full-frontal assault on liberal democracy

So now we have no alternative.  We have to raise taxes.

Trump’s appeasement of Russia threatens European security.  But it also poses the full extent to which the Conservative government ran down Britain’s public capabilities – and, let’s be honest, the Coalition also underfunded our public services and infrastructure, and so did the Labour government (and the Thatcher government) before that.  Since the election we have been learning about the appalling state of our hospital and prison estates.  We already knew about the desperate shortage of social housing, the poor condition of many of our roads and the backlog of investment in public transport.  Inadequate pay for teachers in state schools means that we’re losing them faster than replacements are being trained.  Local authorities are struggling to avoid bankruptcy.  And alongside all that, our armed forces are smaller and weaker than they have been in our lifetimes, and the US Administration has just given us notice that it won’t defend Europe if Russia extends its aggression against Ukraine into hybrid or conventional attacks on the rest of Europe.

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Going for GOLD; proposals for a Global Organisation of Liberal Democracies

This is part of an individual contribution to the Government’s current Strategic Defence Review

The current Strategic Defence Review has a thankless task: with existing international conflicts and tensions threatening to degenerate into all-out war and unprecedented budget restraints at home, now is perhaps not the best time to be holding a review of our depleted armed forces.

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12 June 2024 – today’s press releases

  • GDP: Conservatives have utterly failed to deliver the growth promised
  • Ed Davey calls for young carers to receive education support as latest TV broadcast released
  • Thames Triathletes sickness: Environment Agency investigation needed
  • Craig Williams bet on election date: Sunak must suspend him
  • Conservatives: Record of failure on defence
  • Sky Leaders’ Debate: Sunak “out of touch” on NHS waiting lists

GDP: Conservatives have utterly failed to deliver the growth promised

Commenting on the latest GDP estimates, Liberal Democrat Treasury Spokesperson Sarah Olney said:

As Rishi Sunak’s time as Prime Minister peters out, so does the UK’s economic growth.

The Conservatives have utterly failed to deliver the growth they repeatedly promised, instead presiding over stagnation and economic misery for hardworking families across the country.

The Conservatives’ manifesto shows they simply lack the ambition and vision to get the economy moving again. It’s clear for voters across the country that the only way to make it happen is to vote them out of office on 4 July.

Ed Davey calls for young carers to receive education support as latest TV broadcast released

  • Liberal Democrat Leader Ed Davey speaks to carers in latest TV broadcast airing later tonight
  • Liberal Democrats propose Young Carers Pupil Premium, ensuring carers keep up with their learning
  • Ed Davey, who cared for his mother as a child, says the plans will help young carers fulfil their potential
  • Up to three in 10 (27%) of young carers are missing school

The Liberal Democrats will announce plans for young carers in England to receive extra funding for their education as part of a major expansion of the pupil premium. The policy would support over 50,000 children with caring responsibilities to catch up on their learning.

The latest policy announcement comes as Ed Davey’s new Party Election Broadcast airs tonight on BBC and ITV, with the party leader hearing from carers.

In the film, Ed Davey, who cared for his mother as a child and now cares for his disabled son, hears from a young carer who struggles to balance their learning with caring responsibilities.

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The Conservatives have just announced a big increase in defence spending – how should the Lib Dems respond?

Yesterday Rishi Sunak announced a plan to substantially increase UK defence spending, up to 2.5% of GDP by 2030. This announcement moves the Tory position from an aspiration to achieve this “when economic circumstances allow” to a firm plan with actual budget cash numbers from this year through to 2030.

The timing is interesting – it is less than two months since the Government passed its Spring Budget without any attempt to fund this aspiration, but since then two things have happened. One is that Keir Starmer moved Labour’s policy position to match the unfunded “aspiration”, and (perhaps more importantly) the Daily Mail ran a sustained campaign demanding a defence spending increase.

Beyond the spin and hyperbole of the speech and press release, the Government has also issued a supporting document with more detail, available here and the simultaneous release of this slick and glossy document indicates the Government has been working on this for a while.

In many respects, this is a sensible plan which actually aligns quite closely with the Lib Dem policy “Liberal Values in a Dangerous World” adopted at this year’s Spring Conference, including investing in people to tackle the recruitment and retention crisis within the Armed Forces and civilian MOD, providing a long term procurement pipeline to give industry confidence to invest in capacity and R&D, and reiterating the importance of alliances.

There are a couple of important things currently missing from the Government’s plans however. One is that the Government’s announcements so far do not commit to reverse the current cuts to the Armed Forces, for example in the size of the Army or the Typhoon fighter fleet. These are crucial issues, as the only way the UK could have more capacity available to fight a big war in the next 2-3 years is to reverse planned cuts now.

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The liberal case for increased defence spending

Autumn Conference made one thing very clear – the Liberal Democrats stand with Ukraine and welcome the support that the UK has provided in their fight against Russian aggression. But the fight for freedom doesn’t come cheap, nor we can assume it will always be fought far away. With an assertive China, and considerable uncertainty as to the future political direction of the USA, we are arguably facing the most dangerous period since the height of the Cold War.

The largest donor of military aid to Ukraine is the USA and the flow of American equipment and ammunition has been essential to enable Ukraine’s resistance to Russian aggression. Yet Republicans are succeeding in switching off the flow of aid to Ukraine, and threatening to cripple the war effort for a mix of ideological and political reasons.

Meanwhile efforts in Europe to coordinate a strategy to build industrial capacity to supply munitions and replenish stocks are well-intentioned but proceeding far too slowly, and Europe is currently in no position to fully replace any withdrawal of US aid.

While the West dithers, Putin has transitioned the Russian economy to a war footing, increasing spending and building capacity at pace. Looking forward, Putin will survey the situation in Ukraine and wavering support from her allies and believe he can win. That victory will be of a war of attrition, and come at great cost to the Russian people and economy as well as the Ukrainians. Yet as he empties his prisons to provide cannon-fodder for the frontline, his grip on power is such that he answers to no-one except his ego and dreams of past Soviet glory.

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29 June 2022 – today’s press releases

  • Fraud industry booming on the Conservatives’ watch
  • Independence Isn’t the Answer to Westminster Overreach
  • Defence spending facing £1.7 billion cut by 2025

Fraud industry booming on the Conservatives’ watch

Responding to UK Finance’s Annual Fraud Report, showing total fraud losses up 8% to £1.3bn in 2021, Liberal Democrat Home Affairs Spokesperson Alistair Carmichael MP said:

On the Conservatives’ watch, the fraud industry is booming. Criminal gangs are lining their pockets at the expense of innocent, often vulnerable people.

People need far better protection from these vile fraudsters, but the Government is leaving them to fend for themselves. Boris Johnson and Priti Patel want to simply pretend

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Umunna: Defence budget would be £1bn higher under Lib Dems than Tories

  • If the UK leaves the EU under Johnson’s leadership we will become more reliant on Trump, and risk becoming a vassal state of the United States.
  • Johnson is part of a network of populist, right-wing, authoritarian nationalists
  • In order to stop Boris Johnson getting a majority, seats need to be taken from the Tories which the Lib Dems are best placed to do
  • Ahead of the NATO Summit the Liberal Democrats are committing to spend extra money on defence and aid.

Yesterday, Liberal Democrat Foreign Secretary Chuka Umunna delivered a speech in Watford ahead of the NATO leaders conference.

The Liberal Democrats’ Shadow Foreign …

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