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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Donald Trump vs Barack Obama: How the inauguration speeches compared

We compared the two presidents on trade, foreign affairs and climate change – so you (really, really) don't have to.

After watching Donald Trump's inaugural address, what better way to get rid of the last few dregs of hope than by comparing what he said with Barack Obama's address from 2009? 

Both thanked the previous President, with Trump calling the Obamas "magnificent", and pledged to reform Washington, but the comparison ended there. 

Here is what each of them said: 

On American jobs

Obama:

The state of our economy calls for action, bold and swift.  And we will act, not only to create new jobs, but to lay a new foundation for growth.  We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together.  We'll restore science to its rightful place, and wield technology's wonders to raise health care's quality and lower its cost.  We will harness the sun and the winds and the soil to fuel our cars and run our factories.  And we will transform our schools and colleges and universities to meet the demands of a new age.

Trump:

For many decades we've enriched foreign industry at the expense of American industry, subsidized the armies of other countries while allowing for the very sad depletion of our military.

One by one, the factories shuttered and left our shores with not even a thought about the millions and millions of American workers that were left behind.

Obama had a plan for growth. Trump just blames the rest of the world...

On global warming

Obama:

With old friends and former foes, we'll work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet.

Trump:

On the Middle East:

Obama:

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West, know that your people will judge you on what you can build, not what you destroy. 

Trump:

We will re-enforce old alliances and form new ones and unite the civilized world against radical Islamic terrorism, which we will eradicate completely from the face of the earth.

On “greatness”

Obama:

In reaffirming the greatness of our nation we understand that greatness is never a given. It must be earned.

Trump:

America will start winning again, winning like never before.

 

On trade

Obama:

This is the journey we continue today.  We remain the most prosperous, powerful nation on Earth.  Our workers are no less productive than when this crisis began.  Our minds are no less inventive, our goods and services no less needed than they were last week, or last month, or last year.  Our capacity remains undiminished.  

Trump:

We must protect our borders from the ravages of other countries making our product, stealing our companies and destroying our jobs.

Protection will lead to great prosperity and strength. I will fight for you with every breath in my body, and I will never ever let you down.

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland