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The UK government is facing pressure to increase its military budget to ensure national security during a period of global volatility. A Treasury minister has argued that balancing welfare and defence spending is not a zero-sum game, suggesting that it is possible to increase investment in both areas.James Murray, the chancellor's deputy, stated that the government is committed to the biggest sustained increase in defence investments since the cold war. However, he did not provide a timeline for the publication of the delayed defence investment plan.Former defence secretary and head of Nato, George Robertson, has accused the Treasury of 'vandalism' for not sufficiently boosting the armed forces. He suggested that defence should be prioritized over welfare spending, warning that the UK cannot defend itself with an ever-expanding welfare budget.The government has committed to reaching 2.5% of GDP on defence from April next year and 3% in the next parliament. However, military chiefs believe there is still a £28bn shortfall after years of the armed forces being hollowed out by successive administrations.Murray countered Robertson's views, stating that the welfare system is not a fixed entity and includes targeted measures like the removal of the two-child benefit cap, which helps hundreds of thousands of children out of poverty.The debate over public spending cuts to fund defence has sparked an angry reaction on the left, with veteran MP Diane Abbott accusing Robertson of prioritizing 'guns over butter' and warning that such an approach could cost Labour votes.

As the 2026 local and regional elections draw nearer, the spectre of Trussonomics looms large over the British political landscape. From the Conservatives to the Greens, parties are unveiling extravagant fiscal promises that they claim can be funded by cuts elsewhere or additional borrowing, while insisting the broader economy will remain unharmed. Critics warn that any adverse effects will inevitably be shifted onto people and businesses outside the parties' core constituencies, effectively socialising the risk. Only Keir Starmer and his Labour cabinet appear to resist the pressure to re‑engineer the economy without acknowledging inevitable spill‑overs or extra costs. Former Prime Minister Liz Truss famously pledged £45 bn of tax cuts, financed through extra borrowing and so‑called welfare “efficiencies”. The plan was pitched as a catalyst for an entrepreneurial surge that would lift the UK out of a prolonged period of low productivity. Heading into May’s local polls, the Conservatives are touting a new “big‑spending” agenda after recent welfare cuts, highlighted by a headline pledge to shrink the welfare bill by £23 bn. Shadow Chancellor Mel Stride declared that the “culture of ‘something for nothing’ must end, now”. Green Party leader Zack Polanski has softened some of his party’s more radical proposals, yet the manifesto remains vague. Earlier drafts featured a litany of “free lunches”, signalling an ambition to raise taxes by **more than £170 bn a year** by the end of the next parliament. Key components of the Green plan include a £90 bn annual carbon tax and a matching increase in day‑to‑day public spending, alongside a proposed £90 bn boost to the capital‑spending budget (raising it from £160 bn to £250 bn per year). Reform UK has embraced Trussonomics with gusto, promising to raise the income‑tax threshold from £12,570 to £20,000 – a move that would cost the exchequer **over £40 bn each year**. Underlying many of these pledges is a belief that the UK can reverse a century of economic decline with a “magician’s wand”, ignoring potential repercussions for financial markets, trading partners, and a rapidly disintegrating global order. While the article briefly references the United States and France, the French electorate’s recent rejection of similarly flamboyant policies in local elections serves as a cautionary tale: voters in key cities like Paris and Marseille opted for centrist candidates over the radical platforms of Marine Le Pen’s National Rally and Jean‑Luc Mélenchon’s LFI. The broader context is a decade marked by two major wars, a quantum technological shift, and accelerating climate change – none of which offer quick‑fix solutions. Labour’s economic strategy, championed by Rachel Reeves, hinges on an early‑parliament spending surge intended to generate growth before the next general election. However, the damage inflicted by the previous government is still being reassessed, with the public‑finance gap now appearing larger than the £22 bn initially highlighted by Reeves. Labour still holds considerable funds earmarked for investment, but bureaucratic inertia in Whitehall hampers swift action, and Starmer bears responsibility for this paralysis. Demonstrating tangible returns on public spending – with HS2 currently the sole benchmark – could justify future tax increases on higher earners, provided the money is not wasted. In an uncertain world, the article argues that rational, evidence‑based governance is preferable to “outlandish initiatives” that create a multitude of losers. Ultimately, the piece concludes that Truss’s experiment was a disaster not merely because of the misguided belief that tax cuts can drive sustainable growth in a mature economy, but because it relied on an imagined “escape hatch” to propel the UK to a higher economic plane.

When a loved one passes away while a care home still holds prepaid weeks, many families are told that the provider’s "policy" does not allow refunds. In one recent case, a family challenged this stance, discovered that the contract actually obligated the home to return the unused fees, and successfully secured a refund. The experience underscores a wider issue: care‑home operators often withhold money from bereaved families, banking on their grief and lack of legal knowledge. The author, forewarned by similar reports, enlisted a family lawyer who identified the contractual breach and drafted a decisive email that compelled the provider to comply. Importantly, the complaint was not about the quality of care. The writer notes a clear separation between the compassionate on‑site staff and the profit‑focused head office, suggesting that the latter may deliberately adopt a “no‑refund” stance as a revenue‑preserving tactic. Historically, the practice traces back to the privatisation of care homes under Margaret Thatcher. The original promise was that market competition would increase choice for residents while lowering public spending. In reality, the economics of private care demand near‑full occupancy to stay profitable, forcing operators to raise prices when referrals dip. This creates a paradox: the need for vacant beds to offer choice clashes with the profit motive to maximise occupancy, ultimately undermining the policy’s goals. For families navigating this landscape, the lesson is clear: scrutinise contracts and seek legal advice before accepting a provider’s blanket “no‑refund” policy. A vigilant approach can turn a potentially lost sum into a reclaimed right, and may pressure care‑home chains to rethink opaque refund practices.

The war in Iran has sent shockwaves through the UK economy, causing gilt yields to surge to their highest levels since the 2008 global financial crisis. This increase in borrowing costs has significant implications for Chancellor Rachel Reeves' fiscal policy, potentially eroding the £23bn in 'headroom' she had built up against her fiscal rules.Reeves had hoped that this cushion would allow her to focus on tackling inflation and stimulating growth, but with oil prices up 50% since the onset of the war, investors are now expecting higher inflation and interest rates. As a result, the government's cost of borrowing is set to rise, impacting its ability to fund public spending.The yield on 10-year gilts has jumped to nearly 5%, pushing up the cost of borrowing and forcing Reeves to reconsider her spending plans. This development has also raised concerns about the UK's economic fragility and the potential for a Labour leadership contest to be triggered after the May local elections.Economists warn that the chancellor has probably already lost a third to half of her headroom due to the combination of higher inflation, weaker employment, and surging gilt yields. The situation is further complicated by the UK's high debt levels and reliance on global markets, leaving little room for maneuver for any future government.The implications of this crisis extend beyond Reeves, raising questions about the economic pitch of any potential steward of the economy, whether from Labour or other parties. As Angela Rayner considers John Healey as a potential chancellor, the need for a carefully plotted economic policy that balances growth and fiscal responsibility has become increasingly urgent.