
How laser weapons will be fast-tracked for UK warships in controversial Spring Statement
Britain will rush ahead with fitting laser weapons on to warships as part of an additional £2.2 billion for defence but at the cost of the overseas aid budget, the Chancellor Rachel Reeves will announce on Wednesday. In an increasingly unstable world, Ms Reeves will make a fiscal statement that will include budget cuts while also announcing further investment in the country's defences. The Treasury disclosed that some of the extra military funding will come from the overseas development budget that was last month slashed from 0.5 to 0.3 per cent of GDP. But former Conservative development secretary Andrew Mitchell said that he was 'horrified' at the aid cuts and warned of a 'belt of terrorism' that could stretch across sub-Sahara Africa as a result. However, the government will argue that those harsh cuts are necessary to ensure that Britain can defend itself from the growing Russian threat and global conflict. Part of Ms Reeves' proposed 'decade of national renewal' for Britain will be putting advanced weaponry in the hands of its military because the country had to 'move quickly in a changing world', she will say. The money will be invested in advanced technologies so that Britain's armed forces 'have the tools they need to compete and win in modern warfare', the Treasury said. That included a guaranteed investment to fit Royal Navy warships with 'directed energy weapons' by 2027. The lasers can allegedly hit a £1 coin from one kilometre away and take down drones at a range of 5km. 'Our task is to secure Britain's future in a world that is changing before our eyes,' Ms Reeves will say. 'But we have to move quickly in a changing word and that starts with investment.' The military's money comes from the Treasury reserve and the cuts to the Overseas Development Assistance (ODA) budget, so will not require additional borrowing maintaining 'the Chancellor's ironclad fiscal rule', her department said. But that raid on the overseas aid was described as a 'such an error of judgment', by Mr Mitchell, with the cuts demonstrating the government had a 'misunderstanding of the huge national interest benefit of overseas development'. Alongside massive reductions in US Agency for International Development, Britain's cut will mean that the allies 'vacate the territory' which could be replaced by Russians or Chinese but also terror groups. It could generate a 'belt of misery' stretching from 'the terrible things that have been happening in northern Nigeria' through the Central African Republic, Mali, across to Somalia and even Yemen, Mr Mitchell told the International Development Committee. 'A belt of misery where there are four or five different terrorist movements in operation,' he warned. 'This whole thing will be a rich recruiting ground for terrorism.' The government had said it would wait for two years before introducing the overseas aid reduction, something Mr Mitchell stated was a 'harsh lesson' learnt from when the Conservatives immediately introduced the first cut from 0.7 per cent three years ago. But it appeared from the Treasury briefing that the defence money would be taken immediately. Mr Mitchell lamented that when Britain had stuck to the 0.7 per cent of GDP for ODA money, an internationally agreed figure, that made it a 'development superpower', assisting in 'the fastest decline in international poverty in human history' that lasted from 1990 to 2020. One way of lessening the blow would be to find 'multipliers for money', Mr Mitchell suggested. 'If, for example, we and the UAE or the Saudis, agree together to pursue tackling starvation in Somalia and we each put in $25 million then we are getting two for one for our taxpayers. There's quite a lot of that sort of thing that we should be doing.'
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Arabian Post
9 minutes ago
- Arabian Post
China's Iran Oil Bet Hits Strategic Snag
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Gulf Today
19 minutes ago
- Gulf Today
China-UAE relations continue to open new horizons for development
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Gulf Today
3 hours ago
- Gulf Today
The crucial finance team has much work still to do
Rachel Reeves is to water down plans scrapping her non-dom tax rules amid concerns about the number of wealthy individuals deserting the UK. It must be true, because it's being repeated everywhere — complete with a bland, non-denial from the Treasury: 'The government will continue to work with stakeholders to ensure the new regime is internationally competitive and continues to focus on attracting the best talent and investment in the UK.' A key item under discussion is said to be the proposal to make non-doms' worldwide assets liable to inheritance tax, or IHT, including those held in foreign trusts. There is no doubt many rich people have gone. One analysis by Bloomberg puts the number of company directors who have left at 4,400 in the past year. Examination of Companies House filings shows departures were 75 per cent higher in April than in the same month last year. The worst affected sectors were finance, insurance and property, all of them popular with non-doms. In the most expensive areas of London, stories abound of shuttered mansions, and a knock-on effect across restaurants, hair and beauty salons, car firms and all the other ancillary services. The UK, once a favoured magnet for the world's billionaires and multi-millionaires, has fallen off its perch. A recent Oxford Economics survey found that 60 per cent of tax advisers expect more than 40 per cent of their non-dom clients to leave within two years of Reeves ending their beneficial status. With them will go their families, close staff - and their money. It was the latter that made previous governments, including Labour, seek to attract them in the first place. If they base themselves in Britain, they are more likely to spend and to invest here. That is why other nations are doing their level best to woo them. It's what the Treasury means when it refers to the new regime being 'internationally competitive'. What is bizarre and shaming is that this administration did not see it coming. Seemingly, ministers did not realise that non-doms would quit. They did not appreciate that, in today's world, rich people can move freely and easily and work from anywhere. Either they are guilty of extraordinary unworldliness, deluding themselves that wealthy foreigners would carry on living in the UK merely because they like it here - ignoring the effect on their finances; or they simply did not care, and allowed political ideology to prevail. Whatever the answer, they are now engaged in the sort of reversal and damage limitation exercise which is becoming all too familiar where this government is concerned. The question now is: will it be enough? Already, South Africa's richest self-made woman Magda Wierzycka, the billionaire behind UK venture capital fund Braavos, has stated she will shelve plans to leave should the chancellor U-turn on IHT: 'I would absolutely stay and it's not about protecting my money from the tax man. I pay all my taxes, but South Africa has foreign exchange controls and I don't know whether [my estate] would be able to pay the IHT bill under the current rules.' Whether others are so persuaded, and if Reeves does pull back entirely on IHT, remains to be seen. The problem for her and for Keir Starmer is that the tone has been set. Even if they do climb down, the feeling persists that this iteration of Labour (as opposed to that of Tony Blair, which famously declared it was 'intensely relaxed about people getting filthy rich') cannot abide well-off people. The purging of the non-doms followed a pattern. It joined VAT on private schools, the removal of the winter fuel allowance, hitting farmers with their own new IHT bills, and other measures, aimed at the more advantaged end of society.