The 1996-97 statistics show defence spending just below three percent of GDP, down from a peak above five percent in 1984-85. That earlier peak is linked to Cold War demands and equipment problems exposed by the Falklands War. Planned expenditure remained above 20 billion pounds and below 25 billion, an amount assessed as buying substantial capability at the time. These figures provide a financial baseline after Cold War spending had already fallen.
Notable Point · 11:00-12:28
The 1997 defence-spending baseline
The 1997 financial baseline shows Britain spending just under three percent of GDP while still obtaining a broad and usable naval force.