A nominal increase in defence spending can coexist with cuts to individual programmes. The explanation offered is that funding grows more slowly than the costs imposed on suppliers. New demands for resilience and procurement arrangements can increase companies' bills faster than the government's allocation. Publicizing the overall increase therefore does not establish that existing programmes remain affordable.
Notable Point · 1:12:57-1:13:44
How a rising defence budget can still bring programme cuts
Higher supplier costs can consume a spending increase and leave individual defence programmes facing cuts.