Russia-Ukraine War

A Question of Methodology, Funding Sources, and Impact on Foreign Aid

Keir Starmer's Defense Spending Increase

During Prime Minister's Questions, Keir Starmer claimed that the increase in defense spending he announced on Tuesday would amount to £13.4 billion a year. However, Kemi Badenoch challenged this figure, pointing to the independent Institute for Fiscal Studies (IFS) estimate of a £6 billion annual increase in real terms.

Starmer's explanation for the £13.4 billion figure involved comparing cash figures from the current financial year to those projected for the 2027-28 financial year, without accounting for inflation. Additionally, he used a share of GDP as the basis for the increase, assuming no economic growth over the next three years. This approach essentially inflates the increase by pretending that defense spending would have fallen as a share of GDP without the additional funding.

Furthermore, Starmer may have included intelligence services spending in the 2027 figure but not in the current year's baseline. This reclassification of existing spending as an increase is misleading and inaccurate.

The funding for the increased defense spending will come from a reduction in foreign aid, from 0.5% of national income to 0.3%. This represents a transfer of 0.2% of national income, equivalent to approximately £6 billion in 2027.

The majority of the increased spending is expected to go towards personnel costs, including pay raises and recruitment. However, this comes at the expense of aid programs in some of the world's poorest countries. The impact will be greater than the 40% cut implied by the reduction in the aid budget, as a significant portion of the budget is currently used for housing asylum seekers in Britain.

Starmer also announced an aim to further increase defense spending to 3% of GDP in the next parliament. This would be a substantial increase, although the reclassification of intelligence spending would make it slightly easier to achieve. However, this goal would likely come at the expense of restoring aid spending to the 0.7% target set under David Cameron's government.

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15 Comments

Avatar of Answer

Answer

Starmer is right to increase defense spending. We need to be prepared to defend ourselves and our allies from threats like Russia and China.

Avatar of The Truth

The Truth

The world is a dangerous place. We need a strong military to protect our interests.

Avatar of Answer

Answer

The world is a more dangerous place than ever before. We need to be strong to deter aggression.

Avatar of The Truth

The Truth

This is a tough decision, but it is the right one. We need to be prepared for the challenges of the 21st century.

Avatar of Rotfront

Rotfront

I am proud of Starmer for standing up for our armed forces.

Avatar of Donatello

Donatello

Starmer is taking the right steps to keep Britain safe.

Avatar of Africa

Africa

I support Starmer's plan to increase defense spending to 3% of GDP. This will ensure that Britain remains a leading military power.

Avatar of Comandante

Comandante

This is a necessary investment in our national security. We cannot afford to be complacent.

Avatar of Bella Ciao

Bella Ciao

This is a dangerous escalation of militarism. We should be working towards peace, not preparing for conflict.

Avatar of Muchacha

Muchacha

We need a strong leader like Starmer to defend our interests.

Avatar of Mariposa

Mariposa

I am confident that Starmer will keep our country safe.

Avatar of Habibi

Habibi

Cutting foreign aid to fund increased defense spending is morally wrong. We should be helping the world's poorest, not investing in weapons and war.

Avatar of ArtemK

ArtemK

Thank you, Starmer, for standing up for our country.

Avatar of Donatello

Donatello

Starmer is misleading the public about the true cost of his defense spending increase. The IFS estimate of £6 billion is much more realistic than his inflated figure of £13.4 billion.

Avatar of Habibi

Habibi

Starmer is putting our country first. He is a true leader.

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