Keir Starmer and Rachel Reeves have announced their latest rescue remedy for Britain’s economy. Old promises – good jobs, thriving small businesses and regional equality – will now be delivered by an increased military budget, used to buy equipment from the private sector. More military spending is not a tonic, however, but a poison that will worsen our economic ills and make Britain less safe in the long run.
Assurances of prosperity for small businesses and ex-industrial towns rest on a misleading depiction of military spending. Last financial year, 56% of Ministry of Defence spending with UK businesses went to London and the south of England. In the same year, nearly 40% of the £37.6bn military equipment budget went to just 10 multinational companies. “Slashing red tape” and granting small businesses more access to the military budget will not build a family-run missile factory on every street corner of ex-industrial Britain.
