Conclusion 4

The new Government has yet to set the levels of future defence spending, pending the outcome of the review. It remains to be seen if 2.5% of GDP represents a suitable increase in defence spending, and we note that any increase should be seen in the context of decades-long defence cuts and recent inflationary pressures on the defence budget. Unless significant efficiencies are found, laser-sharp priorities are set and hard trade-offs are made, an increase to 2.5% of GDP may not be enough to meet the UK’s growing defence needs.