Boris Johnson promises biggest UK defence investment for 30 years
Prime minister persuades reluctant chancellor to award MoD a multiyear settlement
Boris Johnson has promised the biggest defence investment since the end of the cold war with a £16.5bn military spending boost that he says will “end the era of retreat” and pioneer new technology for the armed forces.
The financial settlement, which the prime minister will announce to MPs on Thursday, is the result of weeks of tense discussions between Downing Street, the Treasury and the Ministry of Defence.
Chancellor Rishi Sunak cancelled his comprehensive spending review last month and had planned to award all departments a one-year funding deal while he assessed the impact of coronavirus on the economy.
But Mr Johnson intervened this week to win a last-minute exemption for the MoD, which will now receive an extra £16.5bn over four years on top of its annual budget — which is set at £41.5bn for this financial year and is due to rise by 0.5 per cent above inflation every year of the parliament.
“I have taken this decision in the teeth of the pandemic because the defence of the realm must come first,” the prime minister said ahead of the announcement.
He added that the international situation was “more perilous and more intensely competitive than at any time since the cold war” and that to remain true to its allies, the UK had to commit to upgrading its capabilities.
“This is our chance to end the era of retreat, transform our armed forces, bolster our global influence, unite and level up our country, pioneer new technology and defend our people and way of life,” he said.
The new financial deal comes just a week after Mr Johnson promised US president-elect Joe Biden that Britain was determined to remain a valuable military ally. The UK is already the second-biggest defence spender in Nato after the US, according to the International Institute for Strategic Studies.
The government had intended to set out its future priorities in an integrated defence, security and foreign policy review scheduled for later this month. However, as a result of the haggling over budgets, the review will now be postponed until the new year.
In the meantime, the prime minister will announce on Thursday a new agency dedicated to the military uses of artificial intelligence and confirm the creation of a National Cyber Force jointly run by the MoD and GCHQ.
He will also unveil plans for an armed forces Space Command, which will be capable of launching its first rocket in 2022. Dominic Cummings, Mr Johnson’s former chief adviser, had pushed hard to secure more money for cyber and space.
The funding settlement includes £1.5bn in new money for research and development into the UK’s next-generation fighter jet programme. This, combined with other new projects, is expected to create up to 10,000 jobs a year across the country, Downing Street said.
The announcements were welcomed by military chiefs, who have repeatedly argued that a one-year settlement could increase waste by allowing continued funding of redundant capabilities and would prevent more ambitious investments.
“This is a surprisingly decisive financial commitment,” said Michael Clarke, former director-general of the Royal United Services Institute. “But the headline figures disguise a lot of hard decisions about what older capabilities are going to have to be cut to be able to afford the new bells and whistles.”
The department’s financial problems have been compounded by a £13bn hole in its 10-year equipment plan. Even with a more generous settlement than expected, it is likely that ageing programmes such as tanks and some crewed minehunter ships may have to be cut in order to plug the funding gaps while investing in new technologies.
Defence secretary Ben Wallace, a long-term political ally of Mr Johnson, appears to have argued successfully that his department should receive special treatment even as the Covid-19 crisis is forcing cost-cutting elsewhere. “They have an underrated alliance — it’s proving rather stronger than you might think,” said one person close to the budget discussions.
Mr Wallace said ahead of the announcement that the new funding would provide the financial certainty needed to “modernise, plan for the future and adapt to the threats we face”.
Mr Sunak reluctantly agreed that a multiyear settlement was justified on the basis of securing jobs for people working on military projects and to ensure there was no disruption to projects that were already in train.
Mr Johnson told Mr Biden on November 10 that he looked forward to working with him when he becomes president. Downing Street said the two leaders were committed “to building on this partnership in the years ahead, in areas such as trade and security — including through Nato”.
Christopher Miller, the acting US defence secretary, welcomed the UK’s decision to significantly increase defence spending.
“The UK is our most stalwart and capable ally, and this increase in spending is indicative of their commitment to Nato and our shared security,” he said. “With this increase, the UK military will continue to be one of the finest fighting forces in the world.
“Their commitment to increased defence funding should be a message to all free nations that the most capable among us can — and must — do more to counter emerging threats to our shared freedoms and security.”
Mr Johnson is keen to make the case for a strong role for a “global Britain” after the end of the Brexit transition period on January 1.
The spending package is expected to include a boost for the Royal Navy, which Mr Johnson regards as a highly visible representation of his foreign policy, with a crucial role in protecting trade routes.