Britons today were told they could face increased tax hikes in order to finance higher defense spending, as the West responds to Russia’s threats.
Economists said the Treasury could need to raise more revenue if it agrees to a demand from Ben Wallace for £10billion extra funding.
Boris Johnson received a distressing letter from the Defence Secretary. It highlighted gaps in capability such as lack of drones and pilots who can fly stealth aircrafts that weigh multi-billions. There is also a shortage crew for Royal Navy nuclear submarines.
Today’s RUSI Conference keynote speech will be delivered by Mr Wallace. He will advocate that the UK’s defense budget should reach 2.5 percent of its GDP in 2028, which is well beyond the minimum 2 percent required by NATO.
Respected think tank IFS said that the funding increase would be a “big deal” and bring it back to 1990s levels.
Paul Johnson, Director of the Center for Tax Policy and Administration pointed out that tax burdens are already expected to exceed record levels in government’s efforts to balance its books following Covid.
Tweeting a chart showing how more money for health budgets had been found by easing back on military spending since the 1950s, Mr Johnson said: ‘Reduction in defence spending over past 60 years made way for welfare state without need to raise taxes.
There’s no room to lower it, and taxes continue to rise to unprecedented levels. If spending on defence *rises* again then more tax rises, or curtailing of welfare state, will be needed.’
Today’s RUSI Conference keynote speech by Ben Wallace will be a powerful argument that the UK should increase its annual defense budget to 2.5% of its GDP in 2028. This is well beyond the minimum 2 percent required by NATO.
Paul Johnson, Director of Covid pointed out that tax burdens are already at record highs as government attempts to balance its books following Covid.
Johnson sent a tweet showing a graph that showed how much more money could be found for the health budgets by decreasing military expenditures since 1950s
It is the second occasion in recent months that Wallace has asked for additional cash to help the Armed Forces.
In March, he warned Chancellor Rishi Sonak that the spending rate could fall below 2 per cent Nato.
Mr Wallace would use the additional funding to target specific capability gaps rather than upping the size of the Army – which is expected to shrink to just 72,500 by 2025.
At the RUSI conference the Army’s new chief General Sir Patrick Sanders spoke out in dramatic fashion, stating that Russia is now facing a 1937 moment’ due to Vladimir Putin’s “brutal aggression.”
He made a reference the famous German policy of surrendering to Hitler before World War 2.
General Sanders added that they would be able to answer their grandchildren’s questions in 2022. Beijing, meanwhile, will be “watching closely” to determine how the West will respond.
He stated, “If we fail deter there will be no good options.” “We need to be strong and prepared for battle, so we must meet our challenges with strength.”
Volodymyr Zelensky appealed to world leaders to provide him with the power to stop Russia’s aggression on Ukraine.
According to the President of Ukraine, he fears that freezing temperatures will favor Russian invaders. This could limit the troops’ ability defend their homelands.
He demanded that long-range air defense systems and weapons of mass destruction be available before the G7 summit. On a live link to Bavaria, where leaders gather, Zelensky asked for stronger sanctions against Moscow in order to stop the Kremlin from waging war.
He asked for further Western aid to help break Russia’s Black Sea port blockade that is hindering the country’s exports of grain stocks. His speech via video link stated that Ukraine would win and all of us will win.
As the defense alliance gathers today for their summit, it came just as Nato had announced an increase of sevenfold in troops at high readiness from 40,000 to over 300,000. The NATO would send soldiers to respond to Russian invading forces, but they would not go into Ukraine. To ensure that the alliance always has more ready forces for combat, national troops would be placed on alert at different levels.
Pressure on the government’s finances was laid bare last week when figures for May showed the cost of servicing the near-£2.4trillion debt mountain surged to £7.6billion, a record for the month
In order to balance its books, the government has increased the revenue tax it collects in an effort to offset the Covid crisis.
Yesterday night, it was reported that Boris Johnson, as part of NATO’s pledge to Estonia, could make an announcement about significant reinforcements for Estonia. This would potentially increase the British contingent available to support the Baltic State by more than twice the current number.
Zelensky, urging Western allies to support the war effort more strongly, pleaded yesterday for them to “not let it drag out over winter” and called on them to not lower sanctions.
The leaders of the G7 pledged to help Ukraine “for as long it takes”. The Ukrainian military chiefs are determined to counter the Russians in the summer and fall, but they lack the firepower.
Zelensky also wants to reduce the vulnerability of major Russian cities to Russian missile attack attacks. Yesterday, Washington gave Zelensky a boost with Joe Biden promising the same system that protects the Pentagon and White House.
Over 20 M109 howitzers purchased by the UK are due to arrive at the front lines in days. The US has pledged to supply the NASAMS system. This can destroy aircraft and missiles up to 86 nautical mile away. According to military sources, it may be used for protection of Kyiv or other cities.