1. If we have to spend more on defence, what is the scale of those numbers?
2. The ever brilliant IFS have a "what does the government spend money on" guide.
3. The picture is this:
4. and the (round) numbers are this.
5. Total spending 22-23 is £1,200bn. We have (again in round numbers)
a. NHS spending: 200bn = 20% of total
b. Education: 100bn = 10%
c. Defence 50bn = 5%
d. Public order = 40bn, 4%
e. Transport 40bn = 4%
f. net debt interest 100bn, = 10%.
6. Total GDP in 22-23 was 2.6tr. So 1% of GDP is 26bn, 0.1% of GDP is 2.6bn (a basis point of GDP is 260m). If we currently spend 2.3% of GDP on defence and want to increase that to 2.5% of GDP, that is a rise of 0.2 pp of GDP whiich is about 5bn. That's about 12% of transport or public order, or 5% of Education.
