Official account for Britain’s leading independent economic research institute. https://ifs.org.uk/
The Institute for Fiscal Studies
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Will higher defence spending increase UK economic growth? Listen to @maxwarner.bsky.social summary of the potential growth impacts at Treasury Select Committee last week @hoccommittees.parliament.uk.
The Institute for Fiscal Studies
UK armed forces personnel have fallen steadily for 40 years, from 315,000 in 1985 to around 140,000 today.
Meeting the NATO commitment could mean spending an extra ÂŁ30-40 billion, around ÂŁ500 per person, a year relative to current spending plans that get the UK to 2.6% of GDP by 2027-28.
How much does the UK spend on defence? And can the government meet its commitment to NATO to spend 3.5% of GDP on defence by 2035? THREAD 🧵
The Institute for Fiscal Studies
The Institute for Fiscal Studies
The UK spent years as NATO's second-biggest defence spender behind the US. In 2024, Germany overtook it for the first time.
Several NATO allies plan to reach 3.5% of GDP well before the UK. Poland is already approaching 5%, and Germany is on track to hit the target years earlier.
Reaching the NATO defence spending commitment and increasing UK defence spending to 3.5% of GDP by 2035 would reshape the British state. Last week @maxwarner.bsky.social set out the big societal questions this raises at Treasury Select Committee @hoccommittees.parliament.uk.
These are the key numbers to keep in mind as the government's Defence Investment Plan approaches. Read our full analysis here: ifs.org.uk/publications...
'The bigger the inequality in incomes, the bigger the inequality in opportunity'
@pjtheeconomist.bsky.social joins us on the podcast to look at what has happened to income and wealth inequality in the UK and how Britain compares with other countries.
🎧 Listen here: ifs.org.uk/articles/how...
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Reaching 3.5% of GDP would take UK defence spending to levels not seen since the early 1980s, reversing decades of the so-called 'peace dividend' that followed the Cold War.
The Institute for Fiscal Studies
The Institute for Fiscal Studies
The Institute for Fiscal Studies
The Institute for Fiscal Studies
The Institute for Fiscal Studies
The Institute for Fiscal Studies
The Institute for Fiscal Studies
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We examine the past and future of UK defence spending, considering the fiscal and economic consequences of the government’s commitments.
