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Keir Starmer’s plan for UK growth – the Ukraine war

The Labour government’s increase in military spending and its extraordinary new agreement with Ukraine are platforms for the UK arms industry, which Labour sees as key to economic growth in Britain.

MARK CURTIS, 26 February 2025,  https://www.declassifieduk.org/keir-starmers-plan-for-uk-growth-the-ukraine-war/?utm_source=Email&utm_medium=Image&utm_campaign=ICYMI&utm_content=Image

• UK military spending and aid to Ukraine are effectively providing a public subsidy to British arms firms.
• One major MoD contractor is currently being investigated by the Serious Fraud Office for suspected bribery and corruption

Wars can be useful to governments, and the horrendous conflict in Ukraine is so proving. 

In his announcement of increases in UK military spending, Keir Starmer strongly referenced Ukraine and the threat from Russia and said the new “investment” will “create a secure and stable environment in which businesses can thrive, supporting the Government’s number one mission to deliver economic growth”.

He added: “The increased spending will sustain our globally competitive industry, supporting highly skilled jobs and apprenticeships across the whole of the UK.”

Starmer sees the increase in funds to the military as part of Labour’s Plan for Change, its overarching economic growth strategy for Britain.

A few weeks ago, foreign secretary David Lammy echoed his prime minister in comments to an audience of arms firms about the extraordinary 100 year partnership between the UK and Ukraine. He said the new accord, which was signed in January, is “a platform for the UK defence industry” to extend military equipment to Ukraine.

Lammy added: “The UK’s defence industry is key to our growth and security by creating jobs, driving forward innovation and collaborating internationally”.

Britain’s supply of billions worth of military equipment to Ukraine is openly seen by the government as both boosting the fortunes of UK arms firms and promoting Labour’s whole economic growth strategy.

Giant UK arms firms like BAE Systems, Babcock and Thales UK will all likely benefit from increased military spending. They are already benefiting from new procurement contracts from the Ministry of Defence (MoD) as the UK gifts its current stocks of military equipment to Ukraine. 

Much of UK military aid to Ukraine – which amounts to £4.5bn this year – is really a subsidy to these arms firms.

March 6, 2025 - Posted by Christina Macpherson | politics