Cash spending and defence's share of national output tell different stories. The GDP share had been falling well before the Cold War ended, even as advanced military technology drove rapid cost growth and nominal expenditure rose. A brief rise after 1980 reflects the 1982 Falklands War, an interruption within the longer decline. Health, education, and welfare were politically difficult to reduce and also supported service personnel and their families through healthcare, schooling, and low-income assistance. The White Paper therefore reflected competing national priorities as much as military requirements.
Chapter · 2:04-9:30
Defence spending as a political priority
The opening graph distinguishes defence's falling share of GDP from cash spending and sets it against health, education, and welfare priorities.