A Planned Uptick in Defense Spending in the UK


Here to talk about european defence topics because there are many that have emerged over the past few weeks from the united kingdom announcing that it's going to spend big on defense to the revival of the german eurofighter typhoon and developments on the swiss fighter competition. There's certainly a lot to talk about. So tony i wanted to turn to you first. And in addition to that we have a lot of details to share about aviation weeks military forecast and the opportunities that that presents for companies. Where but i. I'm gonna turn to tony to talk a little bit about what's been going on in the. Uk can bring up to speed on where london is on its spending commitments function. Yeah i mean we been quite interesting week. So last week We sort of learned that this very lodge integrates review. Probably what reporting this year and this was going to be sort of an all encompassing big review Biggest one since the cold which would look at the. Uk's defense posture decisions on offense equipment and so on and basically equip the uk for future wolf Future what we did get instead. Now the review is going to come in february. And i'll come back to that in a sec. What we do get instead was essentially a sixteen billion pound or twenty. Four billion pounds boost to defenses causes now sixteen if you listen to the government's consent to party's manifesto or it's twenty million pounds overall over four years so it's a significant boost and the largest ones called call. What was very interesting with that. There was only a few mentions of. How would inference airspace. The uk will get a space command. Sort of link probably onto the force. Because that's the lead on their in space Operations here in the uk and also probably some more money for the ten pace but it was quite vacant that it was very detail on this. And that's partly because of this lack of strategy that still yet to come out so we're gonna get this extra you know pubic pounds. But we have no idea how it's really going to be spent and there's a federal criticism about that cycle. Tony also. Where's the money going to come from with with brexit on the horizon what what does the. Uk's financial situation. How is it going to be able to afford to boost the budget in that way. This is the big elephant in the room. I mean we're heading. Towards at the moment no deal brexit the most ruinous brexit the one that say basically sends businesses and unemployment into the heavens than we're already in a pandemic and then the government's about to really really took the uk off the edge by not getting a deal. We we wait and see if we're gonna get one so yeah. Where is this money can to come from So the talks. All know spending increases with civil servants next year got sunny poppy onset. Because they'll see there's a huge amount of money that has been spent on the pandemic and then there's also talk of reducing international aid budget for example. But there's no clear defined on how this is going to be paid to too. Many of us are expecting a big liking defense. we folded. we'd probably end up being the only country in europe to start cutting fence oversee sex. She'd been wasn't done a very good job in persuade. Prime minister that you know we do really need to be investing. There are still black holes to fill and alleged to be. It's ten to thirteen billion black holding our equipment. Spend where that money would come from. Yeah i'm pretty going to be paying more tax and goodness knows after brexit houses work. It's i think it's going to be a very difficult first. Few months or maybe years post pandemic and post brexit before. How how this is gonna work out. What he's player that haven't gone away. Regards will happens off the breakfast or what happens to the pandemic needed to be done. How we pay for it big question. Big elephant in the room

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