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Defense budget of United Kingdom (2020 - 2028, USD billion)

Industry: Aerospace, Defense and Space
Current: Macro-economic

The Defense budget of United Kingdom attained a value of USD 65.51 billion in 2023
The indicator recorded a historical growth (CAGR) of 6.45% between...
GlobalData projects the indicator to grow at a CAGR of...

Defense budget of United Kingdom (2020 - 2028, USD billion)

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UK defense budget analysis

The UK defense budget has grown substantially since 2020 despite the significant financial pressures from COVID-19, driven by a commitment to domestic procurement and the need to stimulate the economy due to the COVID-19 pandemic. The size of the budget relative to national wealth means that in 2021 the UK achieved its goal on defense (as laid out in the NATO Charter) and is anticipated to rise in 2026, signifying how the forecast defense budget rise is larger than the relative predicted economic growth.

Growth in acquisition spending is a testament to the government’s commitment to using defense spending as an economic stimulant. There is hope that money allocated to the procurement of domestic platforms will boost the local economy and provide jobs for British people. For example, the acquisition of the Dreadnaught-class submarines accounts for roughly over a billion pounds of the acquisition budget each year, with the project a hugely valuable asset to the communities surrounding the shipyard in the northwest of England.

The drivers of defense expenditure which include the policy integration of defense and foreign relations and using domestic defense procurement as a method of stimulating the UK economy in the wake of COVID-19 will help ensure the long-term growth of the UK defense budget. This is because the governments use defense spending as a long-term investment in UK jobs and the industry.

The UK is currently in flux regarding its role in the global political and strategic communities. In a post-Brexit world, the UK is experiencing momentous shifts in relationships and alliances that have existed for decades. No longer a member of the European Union, the UK is still trying to carve out what type of relationship it will hold with the multinational union of states in the future. Whilst the EU is not a military force, Brexit will have ramifications on defense and security.