How to pay for defence - Richard Murphy

23rd February 2025

Lord Keynes told us in 1941 how to pay for defence. We should follow his advice. The last people who should pay for it are those most dependent on the state. It's the richest who should be covering the cost.

How are we going to pay for the defence of the UK is a fundamental political question of the moment because, as we all know, Putin and Trump have now become the most unlikely allies on the planet and are threatening Europe with the potential risk that unless Europe is willing to defend itself, we may be vulnerable to attack from either of them.

And I do stress, literally either of them, because it appears to me that Trump has already declared war on Europe through trade means, and so who knows what else he might do?

The response is to say that the UK must increase its defence spending.

Now, UK defence spending at present is approximately 2.3 per cent of our national income. Our national income is, roughly speaking, £2,800 billion a year at present and therefore, we are spending £60 billion a year on defence.

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