How much does the UK really spend on defence?

Liam Fox says that we have the fourth largest military budget in the world. Is he right?

If you cut through the military jargon, this morning's report from the defence select committee is remarkably hard hitting. The committee warns that the government's cuts mean the armed forces may be falling below the "minimum utility" required to carry out existing commitments, let alone future ones. Unusually, it also criticises David Cameron directly, stating that "The Prime Minister's view that the UK currently has a full spectrum defence capability is rejected by the committee, as it was by the Single Service Chiefs."

Liam Fox has responded by emphasising that the UK retains the "fourth largest military budget" in the world. But how accurate is this claim? It's true, in cash terms at least, that we're still one of the biggest spenders. In fact, according to the latest figures from the Stockholm International Peace Research Institute (the global authority on defence spending), we're now in third place. Below is the top ten.

Military Spending: the top ten

2010 (US$, at 2010 prices and exchange rates)

1. USA $698bn

2. China $119bn

3. UK $59.6bn

4. France $59.3bn

5. Russia $58.7bn

6. Japan $54.5bn

7. Saudi Arabia $45.2bn

8. Germany $45.2bn

9. India $41.3bn

10. Italy $37bn

Source: SIPRI

But this is a poor measure of a country's commitment to defence spending. A clearer picture emerges if we look at military spending as a share of GDP. Here, in graph form, is the top ten (plus the UK).

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The data, again provided by the Stockholm International Peace Research Institute, comes with several caveats. The figure for Saudi Arabia, for instance (11.2 per cent), also includes spending on what is euphemistically described as "public order and safety". The figure for Israel (6.3 per cent) does not include the $2.9bn that the country received in military aid from the US in 2010. But it still offers a much more accurate picture - the UK does not even make the top 30.

This said, even after the government has cut defence spending by 7.8 per cent in real terms, the UK will still meet the informal Nato commitment to spend at least 2 per cent of GDP on defence, one of just five members - the others are the US, France, Greece and Albania - that does. With this in mind, it's hard to argue that the defence cuts are excessive (although the typically contrarian Simon Jenkins has suggested that they are far, far too small). What is now needed is a clearer alignment between commitments and resources.

George Eaton is political editor of the New Statesman.

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Jeremy Corbyn's Labour conference speech shows how he's grown

The leader's confident address will have impressed even his fiercest foes. 

It is not just Jeremy Corbyn’s mandate that has been improved by his re-election. The Labour leader’s conference speech was, by some distance, the best he has delivered. He spoke with far greater confidence, clarity and energy than previously. From its self-deprecating opening onwards ("Virgin Trains assure me there are 800 empty seats") we saw a leader improved in almost every respect. 

Even Corbyn’s firecest foes will have found less to take issue with than they may have anticipated. He avoided picking a fight on Trident (unlike last year), delivered his most forceful condemnation of anti-Semitism (“an evil”) and, with the exception of the Iraq war, avoided attacks on New Labour’s record. The video which preceded his arrival, and highlighted achievements from the Blair-Brown years, was another olive branch. But deselection, which Corbyn again refused to denounce, will remain a running sore (MPs alleged that Hillsborough campaigner Sheila Coleman, who introduced Corbyn, is seeking to deselect Louise Ellman and backed the rival TUSC last May).

Corbyn is frequently charged with lacking policies. But his lengthy address contained several new ones: the removal of the cap on council borrowing (allowing an extra 60,000 houses to be built), a ban on arms sales to abusive regimes and an arts pupil premium in every primary school.

On policy, Corbyn frequently resembles Ed Miliband in his more radical moments, unrestrained by Ed Balls and other shadow cabinet members. He promised £500bn of infrastructure investment (spread over a decade with £150bn from the private sector), “a real living wage”, the renationalisation of the railways, rent controls and a ban on zero-hours contracts.

Labour’s greatest divisions are not over policy but rules, strategy and culture. Corbyn’s opponents will charge him with doing far too little to appeal to the unconverted - Conservative voters most of all. But he spoke with greater conviction than before of preparing for a general election (acknowledging that Labour faced an arithmetical “mountain”) and successfully delivered the attack lines he has often shunned.

“Even Theresa May gets it, that people want change,” he said. “That’s why she stood on the steps of Downing Street and talked about the inequalities and burning injustices in today’s Britain. She promised a country: ‘that works not for a privileged few but for every one of us’. But even if she manages to talk the talk, she can’t walk the walk. This isn’t a new government, it’s David Cameron’s government repackaged with progressive slogans but with a new harsh right-wing edge, taking the country backwards and dithering before the historic challenges of Brexit.”

After a second landslide victory, Corbyn is, for now, unassailable. Many MPs, having voted no confidence in him, will never serve on the frontbench. But an increasing number, recognising Corbyn’s immovability, speak once again of seeking to “make it work”. For all the ructions of this summer, Corbyn’s speech will have helped to persuade them that they can.

George Eaton is political editor of the New Statesman.