British Defense Secretary Ben Wallace presented a report to the Defense Committee in Parliament. British MPs were interested in questions, related to the exchange rate, as well as possible cost cuts amid rising inflation.
As the head of the military department explained, the cuts were the result of the weakening of the pound sterling against the US dollar. Minister clarified, that inflationary pressures will cost the country's budget in the next two years about 8 billion £ (9 billion $), since the department, led by him, most painful to costs unlike other ministries.
Wallace:
Achieving an impressive defense budget is our ambitious goal. Meanwhile, Inflation in Britain was at the level 10,1% and continues to grow, which resulted in the devaluation of the British currency from 1,34 to 1,14, in dollar terms. In this regard,, Secretary of Defense already has an appointment with Chancellor of the Exchequer Jeremy Hunt, so as, to carefully understand how much his department can count on when approving the country's budget for next year. According to him, need to immediately eliminate the "budget hole", order component 40 billion pounds, primarily by increasing taxes and reducing the costs of the departmental apparatus.
Looks like, that against the background of the deepening economic crisis, all the promises of former Prime Minister Boris Johnson, and then his successor Liz Truss to increase the share of GDP for defense spending on 3% by 2028, seem just unthinkable.
Wallace also reported, that the Ministry of Defense has already signed an agreement on the supply of missiles to Ukraine as military assistance. It also provides for the delivery of a next-generation light anti-tank missile system to the Kyiv regime., with a gradual increase in armaments by 2023.
At the same time, there is good news for the military-industrial complex of the UK itself.: the British program for the production of tracked armored vehicles was resumed, which has remained frozen for many years. For these purposes, it was 5,5 billion pounds. Besides, the minister also touched upon the topic of modernizing the country's navy: work is underway to produce a frigate for anti-submarine and air defense of the type 26 ("Global Warship"). Expected, that it is planned to be completed by the end of 2028. Author:Egorenkov Alexander
