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Labour pushes ‘military Keynesianism' to win support for defence spending
Labour pushes ‘military Keynesianism' to win support for defence spending

Yahoo

time3 days ago

  • Business
  • Yahoo

Labour pushes ‘military Keynesianism' to win support for defence spending

Labour's push towards increased militarisation, with Keir Starmer already having slashed the aid budget in favour of defence spending, may not be a policy greeted enthusiastically by many of the party's core supporters. But the government wants to win support for the change in thinking by arguing that investment in defence helps create skilled jobs, particularly outside London, such as at shipyards in Barrow, Devonport, Glasgow and Rosyth. This 'military Keynesianism' was emphasised on Sunday morning when ministers announced plans to build six new munitions factories, which would in time create 1,000 jobs and support a further 800, the Ministry of Defence said. Related: Defence review to say UK must be ready to fight a war in Europe or Atlantic John Healey, the defence secretary, argued that by 'diverting funds from overseas development aid', money would 'go into reinforcing the British industrial base, more jobs in every part of the UK' – an argument almost certainly made with Reform UK at the forefront of the polls at the back of his mind. Fiona Hill, one of the three independent members of the government's strategic defence review team, has long been focused on the impact of post-industrial decline on the economics and politics of Vladimir Putin and Donald Trump. It reflects her personal experience. Hill grew up in County Durham, but moved to forge a successful career as a national security analyst in the US, mindful of her father's advice about where she had grown up: 'There is nothing for you here.' Russia's invasion of Ukraine and Britain's support to help Kyiv defend itself have pushed the UK to seek to revive forms of manufacturing that the long period of peace after the cold war had made obsolete. Last year, an agreement with Germany paved the way for a revival of artillery barrel manufacturing at a site in Telford, a decade after it had been abandoned. And ahead of Monday's strategic defence review, the government again focused on a long-term industrial commitment, this time to eventually build a fleet of Aukus nuclear powered attack submarines, starting in the late 2030s. Assembled in Barrow, the effort would support 30,000 jobs, the MoD said. Such a longer-term focus may also help conceal the relative shortage of money in the short term for defence. The current commitment to lift defence spending to 2.5% of GDP in 2027 may easily be swallowed up in funding existing commitments and overspends. Fresh spending on armaments is of course hardly neutral – it depends entirely on what the weapons are intended to be used for. And while there may be strong public support for Ukraine, in other cases the export of arms can be controversial. In May, it emerged that the UK had supplied $169m worth of arms to Israel between October and December last year, despite announcing a partial ban on exports in September amid concerns they could be used in breach of international law as part of the ongoing offensive against Gaza. Related: Growing geopolitical uncertainty casts shadow over UK defence review Critics argue that while state spending will always stimulate the economy and create jobs, defence spending may not be the most efficient way to do that. A study by Greenpeace looking at the economies of Germany, Italy and Spain concluded that investing in healthcare, education or green technologies creates more jobs and growth than investing in defence. A more honest position, said Sam Perlo-Freeman of Campaign Against Arms Trade, would be to 'separate security arguments from economic arguments' and seek to justify military investment only the basis of the threat perceived. But it is not one that politicians are likely to make when it is possible to point to new factories being built and new jobs created as a result of defence spending.

Labour pushes ‘military Keynesianism' to win support for defence spending
Labour pushes ‘military Keynesianism' to win support for defence spending

The Guardian

time4 days ago

  • Business
  • The Guardian

Labour pushes ‘military Keynesianism' to win support for defence spending

Labour's push towards increased militarisation, with Keir Starmer already having slashed the aid budget in favour of defence spending, may not be a policy greeted enthusiastically by many of the party's core supporters. But the government wants to win support for the change in thinking by arguing that investment in defence helps create skilled jobs, particularly outside London, such as at shipyards in Barrow, Devonport, Glasgow and Rosyth. This 'military Keynesianism' was emphasised on Sunday morning when ministers announced plans to build six new munitions factories, which would in time create 1,000 jobs and support a further 800, the Ministry of Defence said. John Healey, the defence secretary, argued that by 'diverting funds from overseas development aid', money would 'go into reinforcing the British industrial base, more jobs in every part of the UK' – an argument almost certainly made with Reform UK at the forefront of the polls at the back of his mind. Fiona Hill, one of the three independent members of the government's strategic defence review team, has long been focused on the impact of post-industrial decline on the economics and politics of Vladimir Putin and Donald Trump. It reflects her personal experience. Hill grew up in County Durham, but moved to forge a successful career as a national security analyst in the US, mindful of her father's advice about where she had grown up: 'There is nothing for you here.' Russia's invasion of Ukraine and Britain's support to help Kyiv defend itself have pushed the UK to seek to revive forms of manufacturing that the long period of peace after the cold war had made obsolete. Last year, an agreement with Germany paved the way for a revival of artillery barrel manufacturing at a site in Telford, a decade after it had been abandoned. And ahead of Monday's strategic defence review, the government again focused on a long-term industrial commitment, this time to eventually build a fleet of Aukus nuclear powered attack submarines, starting in the late 2030s. Assembled in Barrow, the effort would support 30,000 jobs, the MoD said. Such a longer-term focus may also help conceal the relative shortage of money in the short term for defence. The current commitment to lift defence spending to 2.5% of GDP in 2027 may easily be swallowed up in funding existing commitments and overspends. Fresh spending on armaments is of course hardly neutral – it depends entirely on what the weapons are intended to be used for. And while there may be strong public support for Ukraine, in other cases the export of arms can be controversial. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion In May, it emerged that the UK had supplied $169m worth of arms to Israel between October and December last year, despite announcing a partial ban on exports in September amid concerns they could be used in breach of international law as part of the ongoing offensive against Gaza. Critics argue that while state spending will always stimulate the economy and create jobs, defence spending may not be the most efficient way to do that. A study by Greenpeace looking at the economies of Germany, Italy and Spain concluded that investing in healthcare, education or green technologies creates more jobs and growth than investing in defence. A more honest position, said Sam Perlo-Freeman of Campaign Against Arms Trade, would be to 'separate security arguments from economic arguments' and seek to justify military investment only the basis of the threat perceived. But it is not one that politicians are likely to make when it is possible to point to new factories being built and new jobs created as a result of defence spending.

Can the US be counted on for Asia security? Crisis report casts doubt, warns of arms race
Can the US be counted on for Asia security? Crisis report casts doubt, warns of arms race

South China Morning Post

time23-05-2025

  • Politics
  • South China Morning Post

Can the US be counted on for Asia security? Crisis report casts doubt, warns of arms race

Chinese advancements and inconsistent signalling by the United States under Donald Trump's presidency are stoking concerns among allies and partners in Asia that Washington may not be a reliable guarantor of regional security, according to a report. Advertisement This perception has led to increased militarisation across the region – a trend that was likely to intensify, stated the report by the independent non-profit International Crisis Group (ICG) this month. Titled 'Asia in flux: the US, China and the search for a new equilibrium', the report called on Washington and Beijing to work together to manage the risk of unintended escalation which could generate a regional arms race. This could be done by strengthening military communication channels and engaging in high-level strategic exchanges, it suggested, although it pointed to Trump 's 'Liberation Day' tariffs as obstacles to diplomatic progress. Speaking on Friday morning at an online event on the report, Huong Le Thu, Asia deputy programme director at the ICG said the current unpredictability in the geopolitical situation 'is the new normal'. Advertisement 'The return of President Trump and his America-first foreign policy has been a source of anxiety for many allies and partners in the region including Asia,' she warned.

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