We wrote much more about defence spending and growth in our Green Budget chapter last year: ifs.org.uk/publications...
Lots of discussion in recent weeks about how to fund the (much-delayed!) Defence Investment Plan. While this is important, it is only the first step in the longer-term and much larger defence spending increase this government has committed to. A short thread:
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As @maxwarner.bsky.social says here, any growth benefits of higher defence spending depend on how it's funded. Rumours this week suggested the govt was considering funding top ups by cutting other investment. This would weaken any case that higher defence spending is an 'engine for growth'
Months-long wrangling about whether a top up might be, say, £15bn or £18bn over the next four years (a difference of less than £1bn a year) risks distracting from the broader point - that the govt has committed to increase defence spending significantly over the next decade