RUSI NewsbriefVOLUME 40ISSUE 7members only

The UK Stimulus: Spending on Defence for Economic Benefit

Main Image Credit Courtesy of AMB Brescia.

There are a myriad of reasons why defence spending has not featured in the fiscal stimulus plan of the UK government, but chief among them is the limited ambition of the Ministry of Defence.

A 2012 report by Trevor Taylor and John Louth highlighted the economic benefits of defence spending for the national economy and tax revenues. It concluded that for some cases, investment of £1 yielded a direct return in revenue through taxes and national insurance of between 34% and 38%. The long-term, value chain benefit considerably exceeds the short-term figures, when examining the impact across society in reduced welfare benefits, health costs, dependent suppliers,

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Professor Peter Roberts

Director, Military Sciences

Military Sciences

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