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The Guardian - UK
The Guardian - UK
World
Andrew Kersley

UK ‘wastes billions’ on defence firms that give investors rich returns

Defence secretary Ben Wallace is given a demonstration of an Ajax armoured fighting vehicle earlier this year.
Defence secretary Ben Wallace is given a demonstration of an Ajax armoured fighting vehicle earlier this year. Photograph: Ben Birchall/AFP/Getty Images

The UK government is wasting billions of pounds of taxpayers’ money on “corporate welfare” for arms manufacturers that is siphoned into massive shareholder returns, a new report claims.

The study, by thinktank Common Wealth, suggests that long-term purchase orders and direct subsidies, which sometimes paid for more than 90% of private defence firms’ research and development budgets, were allowing leading defence companies to give billions of pounds to their shareholders.

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