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Old 22nd Jun 2018, 06:33
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ORAC
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https://www.theguardian.com/politics...fence-spending

Williamson losing fight with Treasury for rise in defence spending

The defence secretary, Gavin Williamson, is unlikely to receive any increase in defence spending in the coming year in spite of waging a relentless political campaign against the Treasury, according to Whitehall sources.

Williamson is scheduled to meet chancellor Philip Hammond in the next fortnight in a renewed attempt to secure concessions ahead of a Nato summit in Brussels on 11 and 12 July. But a source familiar with the negotiations said there is no chance of the Treasury, faced with a promised rise in NHS spending and other demands on the budget, conceding any more cash to the Ministry of Defence.

Williamson met Hammond and Theresa May on Tuesday to discuss the results of a year-long defence review scheduled to be announced before the Nato summit. But the meeting broke up without him securing any promises of more cash. He also met the chief secretary to the Treasury, Liz Truss, but that too ended without him wringing any more funding.......

Williamson’s intense politicking, backed by a vocal group of Conservative backbenchers, is beginning to grate with May and Hammond, according to a source, who added that while they were sympathetic to the needs of the military they had become irritated by his tactics. The MoD is still hoping to secure some more money in the next few weeks, and, failing that, in the autumn. However, the source said the best the MoD could hope for was a token rise in spending in autumn or early next year, though nothing close to the billions Williamson was seeking.A second Whitehall source said: “It is clear the Treasury do not want to splash cash around.”

With the government close to announcing the outcome of the public pay review, Williamson is also pushing for a recommendation of an inflation-beating 3% for the forces to be honoured in full. While the Treasury is reported to be sympathetic to a rise for the military, it is concerned about the impact of pay rises across the public sector and looking for a compromise from Williamson. The Treasury has apparently suggested meeting the 3% “in spirit”, perhaps with compromises over the three-year period......




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