By the Herefordshire & Worcestershire Chamber of Commerce
Recently Prime Minister, Rishi Sunak announced a landmark increase in the UK’s defence budget whilst on a visit to Poland. This increase will be 2.5% of national income by 2030, allocating billions of pounds to bolster the nation’s security capabilities in response to growing geopolitical tensions. Rishi Sunak stressed the UK was ‘not on the brink of war’ but claimed the extra funding will put the country’s defence industry ‘on a war footing’.
Both Labour and Conservatives are committed tp 2.5% of GDP when the economy allows. The investment was required because the UK was facing an “axis of authoritarian states with different values to ours,” including Russia, Iran, North Korea, and China, he said. These countries, he argued, were showing a “new assertiveness” and were increasingly working together. It represents a significant increase in UK defence spending, but it will not change the size of the UK armed forces or reverse cuts to the size of the army. This increase comes as an encouragement for those within the defence sector.
Local area council Member, Mark Smith of Ridgmont Holdings, commented – ‘The increase is of course welcomed by the Defence Sector, and no doubt by our over-stretched Armed Forces. Global insecurity and instability dictate that this increase is a necessity; hopefully it will act as a prompt for other European NATO members to do something similar, as the conflict with Russia is unlikely to cease any time soon. What is key is that the additional money is used appropriately; buying the right equipment, and associated support, to provide our forces with what they really need to fight and survive against today’s threats. The uplift will hopefully benefit UK defence companies, giving a much-needed boost to the sector after the impact of COVID and recent MOD spending freezes’.
Ridgmont Holdings, based in Hereford, represent a growing group of companies that supply world class capabilities to UK Ministry of Defence, UK Police Forces, a range of NATO military forces and specialists who demand the best. Downing Street says spending would increase gradually over the next six years, reaching £87.1bn by 2030 – £7bn higher than if spending stayed at its current level of 2.3% of GDP.