Despite Iran War's fierce blow to UK economy, Labour must find the money to increase defence spending
Donald Trump’s Iran War is creating a global economic crisis, while his attacks on Nato are undermining UK security
Not long ago, Labour was perhaps hoping the UK economy had got over the shocks delivered in its first Budgets and that things might be starting to look up.
However, the Iran War has since brought the world to the brink of what the International Monetary Fund fears may be a “major energy crisis”. And for reasons that must strike Keir Starmer and co as unfair, it seems the spike in energy prices will hit the UK harder than any other G7 country.
As the IMF cut its growth forecast for this year from 1.3 per cent to 0.8 per cent, Chancellor Rachel Reeves put it like this: “The war in Iran is not our war but it will come at a cost to the UK. These are not costs I wanted but they are costs we will have to respond to.”
This is not the only source of trouble for the government. They may view an unexpected broadside from former Nato Secretary General George Robertson – about a “corrosive complacency in Britain’s political leadership” over the need to increase defence spending – as unnecessarily fierce friendly fire but, quite simply, he is right.
As the former Labour Cabinet minister correctly warned, “Britain’s national security and safety is in peril” and we must rearm with far greater urgency than ministers have shown to date.
Trump started a war with huge consequences for the global economy and no clear plan to end it. Despite the recent ceasefire, it may well erupt again. His blockade of Iranian ports could also potentially lead to decidedly uncomfortable encounters between the US and Chinese navies, if the latter are ordered by Beijing to escort vessels attempting to leave.
Furthermore, the US President’s unjustified criticisms of Nato have cast doubt on whether he would honour the alliance’s commitment to collective defence, reducing the strength of that deterrent and making the world a more dangerous place.
Politics is seldom fair and Labour must simply get on with the job in hand: protecting the economy as best they can, while ensuring our Armed Forces are prepared for a global crisis that could make our current fears seem trivial.
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