Briefing points in advance of the UK government budget announcement

This briefing note was prepared by Dr Stuart Parkinson, Executive Director of Scientists for Global Responsibility.

  • In November 2020, Prime Minister Boris Johnson announced a very large increase in UK military spending.
  • Total additional spending is approx. £24bn over four years, i.e. an average of £6bn per year (see table and graphs in appendices).
  • The core military budget in 2020-21 was £41.2bn. 3 Accounting for inflation, the increase in annual spending averages about 10%.
  • This jump is the highest percentage increase in military spending since UK involvement in the Korean War 70 years ago.
  • The spending increase is all focused on the ‘capital’ part of the Ministry of Defence’s budget, mainly on military equipment.
  • The main elements of the military equipment budget include: submarines and nuclear weapons (the largest); combat aircraft; warships; armoured vehicles; IT; and weapons.
  • Newer areas of spending include: armed drones; military artificial intelligence; cyber warfare; military space technologies; and directed energy weapons (e.g. lasers).
  • The spending increase is based on a premise that a highly militarised response to international security problems – based on global deployment of offensive weapons technologies – should remain at the heart of the UK foreign and security policy. We contest this view, and argue for alternative spending.
  • The core military budget does not include about £6bn per year of additional spending which the UK reports to NATO. This includes military pensions and some peace-keeping activity.

Comparisons with other budgets

International development/ overseas aid

  • In November 2020, the UK government announced a huge reduction in spending on overseas aid.
  • The budget for overseas aid is determined with reference to an international target, i.e. 0.7% of Gross National Income (GNI). The November announcement was that the UK would reduce its aid budget from 0.7% to 0.5% GNI.
  • The actual monetary reduction from 2020-21 to 2021-22 is £3.3bn (see table and graphs in appendices). This is on top of a reduction from the previous year due to a number of factors, including the shrinkage of the UK economy due to the COVID-19 crisis and the merger of the Dept for International Development with the Foreign Office.
  • No aid spending figures have yet been published for after 2022.

Reducing UK carbon emissions

  • In November, the government announced ‘The ten point plan for a green industrial revolution’, with a budget of £12bn.
  • On closer inspection, a maximum of only £11bn is earmarked for spending in the next four years, averaging of £2.8bn per year.
  • In December, the Committee of Climate Change (CCC) published a report which analysed current and future government spending to hit its reduction targets for carbon emissions.
  • The CCC estimated that government spending in this area for 2020-21 was approximately £5bn. This included £2bn devoted to the Green Homes Grant (GHG) scheme.
  • The latest evidence is that only £0.1bn of the GHG will be spent in this financial year, meaning total spending is only £3.1bn.
  • The CCC estimated that annual government spending needs to increase very rapidly to between £9bn and £12bn – and that other (non-budget) measures are also needed to help switch/ stimulate the rest of the UK economy to spend at least £40bn per year on reducing carbon emissions.
  • Note that other climate-related spending – e.g. overseas aid for climate projects, climate change adaptation projects – are not included in these figures.
Appendix 1 – Table of UK government spending changes relative to 2020-21 (cash terms)
Spending Area2021-222022-232023-242024-25
Military4.86.06.26.4
Oversees Aid-3.3N/AN/AN/A
Carbon Reduction2.82.82.82.8