The Multipliers and the Military

New OBR research shows Defence investment can boost growth

BLUF: A discussion paper from the OBR shows how Defence spending hike, and indeed all other investment-focused spending increases, can boost growth and reduce debt. The above graph shows how a proposed new model would significantly improve Britain’s debt dynamics — and if I stretched the impacts out for 50 years instead of 10, you’d be truly impressed!

The submissions deadline for input to the Strategic Defence Review just passed — presumably Lord Robertson’s team are busy sorting through the input on the 23 questions they put to defence contractors, think tanks, trade unions and other interested parties.

However, the missing issue in the SDR questionnaire was money.

At one level this is a good thing. Because if you’re doing a “root-and branch” review of Britain’s defence capabilities, you need to match the capabilities to the threats, not to some arbitrary budget figure.

But the idea that Britain can sustain its national security while spending (as at present) 2.3% of GDP is ludicrous. Likewise the promised 2.5% figure, agreed by both Labour and the Conservatives before the last election.