Defence

David Greenwood

Chapter 5 in Public Expenditure Policy, 1985–86, 1985, pp 101-119 from Palgrave Macmillan

Abstract: Abstract In 1985–86 the government plans to spend on defence the same amount, in real terms (that is cost terms, deflated by GDP deflator), as it spent in 1984–85. The sum budgeted for 1986–87 is a bit less than that. The figure for 1987–88 is fractionally lower again. In short, for the Ministry of Defence (MoD) and for Britain’s armed forces, the good times are over. After 7 or 8 years of steadily rising appropriations — in line with the pledge made to the UK’s partners in the North Atlantic Treaty Organisation (NATO) to aim for increases in spending, after inflation, of 3 per cent a year — there is to be less money for defence during the remainder of this government’s term. Because Mrs Thatcher and her ministers are determined to acquire a next-generation strategic nuclear force (of four new submarines, armed with the American Trident missile), the result will not be an all-round squeeze on defence provision. Instead, the burden of adjustment to changed budgetary circumstances will fall on the country’s contributions to NATO’s conventional capabilities. The next several years will see a dilution in the quality — perhaps even a diminution in the quantity — of the forces provided for the Alliance’s non-nuclear order of battle. Unless, that is, the Secretary of State for Defence (Mr Michael Heseltine) can work managerial wonders and get substantially more defence for the taxpayers’ money than any of his ministerial predecessors have succeeded in doing.

Keywords: North Atlantic Treaty Organisation; Defence Programme; Defence Spending; Defence Effort; Defence Budget (search for similar items in EconPapers)
Date: 1985
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DOI: 10.1007/978-1-349-08252-0_5

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