The budgets for the Royal Navy, Army and RAF are being cut in real terms, due to inflation, say analysts.
The allowance for all departments, including the Ministry of Defence (MoD), will rise in line with the 2021 spending review, representing a cash boost, according to reports. But it has been suggested this will be devalued by inflation, which is currently at 10%.
This means Rishi Sunak is set to cut defence spending in real terms as planned budget hikes are dwarfed by soaring inflation. With GDP contracting by 0.2%, Jeremy Hunt has warned of a "tough road ahead" for the UK. Ahead of revealing his much-anticipated autumn budget on Thursday, the Chancellor said yesterday he will be working to make a possible recession “shallower and quicker”.
