Connect with us

Published

on

The Royal Navy will get 25 new warships – and could get three more – as the government indicates where its planned rise in defence spending will go.

Defence Secretary Grant Shapps told Sky News there are 28 new ships and submarines in the design or construction stage at the moment for the UK’s armed forces.

He said 22 ships are “already in the system” – but there is less clarity over six new warships he announced for the Royal Marines today.

The defence secretary said that the government is committing to three of the new “versatile” ships for the Marines, “and then possibly another three as well”. He later said the final three are “in the design phase”.

He also announced two of the ships being built – type 26 and 31 frigates – will be equipped with land-attack missiles so they will be capable of attacking targets on shore.

Mr Shapps said this is a “very, very large shipbuilding programme, a lot of warships, the golden era of shipbuilding here”.

He added: “It’s all possible because just last month we agreed as a government to spend 2.5% of our GDP on our defence sector because we think it’s very, very important to make sure that those who would seek to do us harm are put off, that they are dissuaded because they can see that we’re serious about our defence.”

Labour has pledged to reach 2.5% of GDP on defence spending when economic conditions allow it, while the Conservatives have said they would reach that number by 2030.

But defence spending fell in the early years of the Conservative government, which has been in power for 14 years, and spending was not boosted when Ukraine was invaded in 2014 or 2022.

grant shapps
Image:
Mr Shapps accused Labour’s defence plan of posing a danger to security

Mr Shapps said the Tory pledge is different to Labour’s because the Conservatives have “set out a timeline”.

“We’ve also said how we would go about largely funding this, and that’s by reducing the size of the civil service, which is much bigger than it was before COVID,” he said.

“We want to get it back down to the size it was before and use that money to spend on defence.

“I have to say, as defence secretary, with everything that I know in this role, that I think that the Labour position presents a danger to this country because it will send a signal to our adversaries that we’re not serious about our defence if we won’t set out that timetable.”

More politics:
Rwanda law to be ‘disapplied’ in N Ireland
MPs to be barred from parliament after serious arrests

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Labour’s shadow work and pensions minister Alison McGovern said she is “sceptical” about the Conservatives’ claim about how they will fund the spending rise.

She said Labour has had to pledge the rise for when the economy allows “because of what the Conservative Party have done to our economy” – as she accused Liz Truss and Rishi Sunak of implementing “big unfunded tax cuts”.

Ms McGovern added: “I think everybody would expect Rachel Reeves as the shadow chancellor to say, well, we will make our plans when we’ve got access to all of the books, all of the details of Ministry of Defence spending.”

Mr Shapps said the government did not spend as much on defence previously because countries such as China, North Korea, Iran and Russia were not such a threat.

The defence secretary added: “We were living in very, very different times.”

He said the government has also added £24bn to the defence budget over the past couple of years and the UK is “by a country mile the largest spender on defence in Europe, with the second largest in NATO after only the US”.

The fuel would have filled up electricity generators hat powering the HMS Bulwark, pictured
Image:
HMS Bulwark will not be scrapped before its end of service date. Pic: PA

Discussing the UK’s current fleet, Mr Shapps said sister ships HMS Albion and HMS Bulwark are due to come out of service in 2033-2034 but the defence secretary said they will not be scrapped before that.

Albion and Bulwark are currently used as the Royal Navy’s landing platform docks to transport the Royal Marines.

Mr Shapps also announced HMS Argyll and HMS Westminster, two frigates with a combined service of 63 years, are to be retired, with HMS Argyll sold to BAE Systems to be used to support apprentice shipbuilder training.

The new ships being built include Type 26 and Type 31 frigates in Scotland, Astute and Dreadnought submarines in Barrow-in-Furness, and Fleet Solid Support ships in Belfast and Devon.

Continue Reading

Politics

Chancellor admits tax rises and spending cuts considered for budget

Published

on

By

Chancellor admits tax rises and spending cuts considered for budget

Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces.

“Of course, we’re looking at tax and spending as well,” the chancellor said when asked how she would deal with the country’s economic challenges in her 26 November statement.

Politics Hub: Follow latest updates

Ms Reeves was shown the first draft of the Office for Budget Responsibility’s (OBR) report, revealing the size of the black hole she must fill next month, on Friday 3 October.

She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago.

Please use Chrome browser for a more accessible video player

Chancellor pledges not to raise VAT

Cabinet ministers had previously indicated they did not expect future spending cuts would be used to ensure the chancellor met her fiscal rules.

Ms Reeves also responded to questions about whether the economy was in a “doom loop” of annual tax rises to fill annual black holes. She appeared to concede she is trapped in such a loop.

Asked if she could promise she won’t allow the economy to get stuck in a doom loop cycle, Ms Reeves replied: “Nobody wants that cycle to end more than I do.”

She said that is why she is trying to grow the economy, and only when pushed a third time did she suggest she “would not use those (doom loop) words” because the UK had the strongest growing economy in the G7 in the first half of this year.

What’s facing Reeves?

Ms Reeves is expected to have to find up to £30bn at the budget to balance the books, after a U-turn on winter fuel and welfare reforms and a big productivity downgrade by the OBR, which means Britain is expected to earn less in future than previously predicted.

Yesterday, the IMF upgraded UK growth projections by 0.1 percentage points to 1.3% of GDP this year – but also trimmed its forecast by 0.1% next year, also putting it at 1.3%.

The UK growth prospects are 0.4 percentage points worse off than the IMF’s projects last autumn. The 1.3% GDP growth would be the second-fastest in the G7, behind the US.

Last night, the chancellor arrived in Washington for the annual IMF and World Bank conference.

Read more:
Jobs market continues to slow
Banks step up lobbying over threat of tax hikes

Please use Chrome browser for a more accessible video player

The big issues facing the UK economy

‘I won’t duck challenges’

In her Sky News interview, Ms Reeves said multiple challenges meant there was a fresh need to balance the books.

“I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up,” she said.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She was clear that relaxing the fiscal rules (the main one being that from 2029-30, the government’s day-to-day spending needs to rely on taxation alone, not borrowing) was not an option, making tax rises all but inevitable.

“I won’t duck those challenges,” she said.

“Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”

Pic: PA
Image:
Pic: PA

Blame it on the B word?

Ms Reeves also lay responsibility for the scale of the black hole she’s facing at Brexit, along with austerity and the mini-budget.

This could risk a confrontation with the party’s own voters – one in five (19%) Leave voters backed Labour at the last election, playing a big role in assuring the party’s landslide victory.

The chancellor said: “Austerity, Brexit, and the ongoing impact of Liz Truss’s mini-budget, all of those things have weighed heavily on the UK economy.

“Already, people thought that the UK economy would be 4% smaller because of Brexit.

“Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting.”

Continue Reading

Politics

Crypto maturity demands systematic discipline over speculation

Published

on

By

Crypto maturity demands systematic discipline over speculation

Crypto maturity demands systematic discipline over speculation

Unlimited leverage and sentiment-driven valuations create cascading liquidations that wipe billions overnight. Crypto’s maturity demands systematic discipline.

Continue Reading

Politics

NYC mayor establishes digital assets and blockchain office

Published

on

By

NYC mayor establishes digital assets and blockchain office

NYC mayor establishes digital assets and blockchain office

The executive order creating the Office of Digital Assets and Blockchain Technology under the New York City government came three months before Eric Adams will leave office.

Continue Reading

Trending