Image source: topwar.ru
The British defense Secretary Ben Wallace presented the report of the defence Committee in Parliament. British MPs were interested in issues related to the exchange rate, as well as a possible reduction in costs amid rising inflation.
As explained by the head of the military Department, the reduction was the result of the weakening of the pound sterling against the us dollar. The Minister said that inflationary pressure will cost the country in the next two years, about 8 billion £ (9 billion$) as Department, headed by him, the most painful to costs in contrast to other ministries.
Wallace:
Meanwhile, inflation in Britain was at 10.1% and continues to grow, resulting in the devaluation of the British currency from 1.34 to 1.14, in dollar terms. In this regard, the Minister of defence has already scheduled to meet with Chancellor of the exchequer Jeremy hunt in order to thoroughly understand what amount can count his office with the approval of the national budget for next year. According to him, immediately it is necessary to eliminate the "fiscal hole", which is about 40 billion pounds, primarily due to the tax increases and spending cuts to departmental staff.
It seems that the background of a deepening economic crisis, all the promises of the former Prime Minister, Boris Johnson, and then his successor, Liz Runs to increase the share of GDP on defence spending to 3% by 2028-mu, seem unthinkable.
Wallace also said that the Ministry of defence has signed an agreement for the supply of missiles to Ukraine military aid. It also provides for transferring the Kiev regime lightweight anti-tank missile system of the next generation, with a gradual increase in service by 2023-mu.
This is good news for the defense industry of the UK were resumed by the British program for the production of tracked armoured vehicles, which remained frozen for many years. For this purpose was provided by 5.5 billion pounds. In addition, the Minister also referred to the modernisation of the country's Navy: work is underway on the production of frigates for anti-submarine and air defense-type 26 ("Global combat ship"). It is expected to complete his plan by the end of 2028 year.
