Historically, UK spending on defence has often been pitted against welfare, education and local government. But at a time when the government has pledged to meet Nato’s target for defence spending – 5% of GDP in the next decade, up from around 2.3% – it appears to be offering a different fiscal equation.
The government has suggested that it aims to shift the tax burden upwards, targeting especially large profits and tax avoidance. Despite recent fury over its welfare reforms, as far as taxes go, the government still appears to believe that those with the broadest shoulders should carry the weight.
Past approaches to balancing the books relied on austerity or slashing welfare spending. Throughout the 2010s and early 2020s, Conservative governments framed public finance as a rigid trade-off. This mentality dominated budget decisions, forcing domestic priorities to shrink as defence budgets grew.
