Robbing welfare to pay for military expansion
https://morningstaronline.co.uk/article/robbing-welfare-pay-military-expansion

While promising massive housebuilding with ‘no fiscal cost,’ DIANE ABBOTT MP reveals the government relies on planning reforms alone rather than public investment, as military expansion becomes the only significant investment
IN POLITICS, one should never over-promise and then under-deliver. At the same time, overall policy should be grounded in something more than wishful thinking. It is highly regrettable that the Chancellor made both these errors in delivering her Spring Statement.
Before the statement, all the talk was of enormous sums that would become available for desperately needed investment. At the same time, there was a strong campaign to refute any idea that the government was pursuing yet another round in the failed austerity experiment of its predecessors.
In the event, both were untrue. The actual new investment is extremely small and is mostly directed towards military and security investment, which is a completely wasteful and dangerous diversion of resources. A somewhat larger sum is planned to be “saved” by yet further attacks on welfare.
In effect, more spending on the military is being paid for by more attacks on the vulnerable, the sick and disabled people.
The Treasury has itemised the sums which illustrate these dangerously wrong priorities. By 2029-30, they project that the annual total of capital investment will have increased by £4.6 billion. But most of this does not properly fall into the category of investment at all, because it is military spending. You cannot produce something else from bombs, bullets and missiles.
Once military and security funding are excluded, real new productive investment amounts to less than £1.9bn at the end of this parliament. It does not qualify as investment. In terms of impact on the economy or living standards, it is a trivial amount.
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Military spending is the only significant area of government spending which is seeing any significant rise in government capital spending. It aligns with Trump’s policy and begins to meet his demands. But we know that he will come back for more. There is already talk of doubling military spending as a proportion of GDP to 5 per cent.
Now, and in the future, that can only come from cutting spending elsewhere. Of course, if the economy were booming, then increases in welfare, in spending on public services, in genuine public investment and even increases in military spending could all take place simultaneously. But no-one is suggesting a boom is likely or even possible.
In reality, the rise in military spending is only possible by restraining spending on public services and cutting welfare. This increased military budget is being paid for by sick and disabled people. The economy will not get the public investment it needs and living standards and public services will both remain constrained. These choices are morally, politically and economically wrong.
Diane Abbott is Labour MP for Hackney North and Stoke Newington.
Original article at https://morningstaronline.co.uk/article/robbing-welfare-pay-military-expansion

