A key theme of the UK spending review is raising government budgets in some areas and using those increases to boost economic growth.
Defence will receive a major injection with British contractors set to cash in, driving skills and jobs and revitalising some of the worst-hit post-industrial regions.
It all sounds exciting and eminently doable on paper but, moving away from the drumbeating, the picture is not as clear-cut as the one Chancellor Rachel Reeves paints. Indeed, it is nowhere near the rosy, easily achievable image she creates.
Britain is to increase its military expenditure to 2.5 per cent of GDP by 2027 and then to 3 per cent in the lifetime of the next parliament. Those numbers are tiny and fall a long way short of the 5 per cent sought by the US and Nato.
Given it is not remotely clear how even the 2.5 per cent will be met, which represents a lift of only 0.2 percentage points from the current level, it is hard see how Prime Minister Keir Starmer’s “ambition” of 3 per cent, let alone 5 per cent, will be met.
As the Institute for Fiscal Studies makes clear, there are few avenues: spending less on public services or raising borrowing and tax revenues. Some funding is to be derived from cutting international aid but after that, attention will focus on savings elsewhere or borrowing and taxing more. Details of what Reeves has in mind are scant – they will be revealed in her autumn budget – but tax rises look the most likely option.
They will be justified on the grounds of need and the argument is already being rehearsed. Gone is the old rhetoric of maintaining a deterrent. Instead, the language is of “readying for war”. It is presented as a national crisis, a conflict when the usual caveats and restraints are abandoned in favour of all hands to the pump or rather, the wallet.
Except they are not. The day before Reeves’ set piece, the Labour activists’ news website LabourList published a poll finding that one in four party members backed defence savings not increases. “The poll, conducted by Survation, found that 26 per cent of readers who identified as members would want to see money earmarked for defence to be spent elsewhere, despite the government pledging to boost investment in the military in the coming years,” LabourList said.
One Nottingham councillor, Steve Battlemuch, seemed to voice the reasoning of many when he said: “I will watch the Chancellor’s spending review with my fingers crossed that councils start to get a better deal, but I suspect the multinational defence industry will be the ones popping the Champagne corks when she sits down.
“They have more lobbyists than children and councils have, and they have the fear factor. In a world where fear beats hope we have an uphill battle to get money allocated to making things better locally.”
He may well be right. Despite the talk of 2.5 per cent, it is small compared to how Britain once was. In 1955, the military accounted for 7.63 per cent of national income. The subsequent long-lasting “peace dividend” saw that proportion of GDP scaled back and the money directed to other services.
With that decline, though, came a commensurate decrease in weapons manufacturing – armaments suppliers disappeared and the sector heavily retrenched. Rebuilding will not occur overnight. It will be a slow process necessitating the planning and construction of factories and their attendant infrastructures and the sourcing of parts and materials, not to mention the development of skills.
Into that breach is bound to step established major producers from the US and similarly friendly countries. Those overseas behemoths will be rubbing their hands, or as Battlemuch put it, “popping the Champagne corks”, at the prospects ahead, despite Starmer and Reeves promising to “buy British”.
It was that downsizing that saw Britain slash domestic defence shipbuilding capability, so the sector fell, effectively to just one shipyard at Barrow-in-Furness in Cumbria. It happens to be my hometown.
Even there, the size of the workforce drastically diminished, as Ministry of Defence orders continued to slump. At one stage, with completion of the generation of Vanguard submarines, it was down to below 5,000, badly hitting the town’s fortunes. More recently, the site, now part of BAE Systems, has been climbing and is back up to 12,000 workers with another 5,000 to be added in the years ahead.
Under the Strategic Defence Review 2025 and proclaimed by Starmer, the plant will build 12 new attack nuclear submarines. Local Labour MP Michelle Scrogham said: “This will safeguard jobs, provide huge opportunities for local people and be the driver for our local economy across south Cumbria.”
BAE, however, has struggled to obtain the necessary approvals for expanding its production facility. On the employment front the situation is little better. A nuclear industries task force has been set up to help train the tens of thousands of workers needed across the upscaling of nuclear in defence as well as in civil energy programmes.
On the defence side, the submarines will be built by BAE with their nuclear reactors hailing from Rolls-Royce. It too is doubling the size of its Raynesway site in Derby. Once launched, the vessels will be maintained by Babcock. John Howie, Babcock's chief corporate affairs officer, has said: “The industry needs to recruit a lot just to stand still. We don’t want to steal from each other.”
Starmer and Reeves then, may be gung-ho and what they are promising will certainly be of economic advantage, not to mention security. But the great defence push will cost and it cannot be completed immediately. A healthy dose of realism is required before everyone gets too carried away.
AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Trump v Khan
2016: Feud begins after Khan criticised Trump’s proposed Muslim travel ban to US
2017: Trump criticises Khan’s ‘no reason to be alarmed’ response to London Bridge terror attacks
2019: Trump calls Khan a “stone cold loser” before first state visit
2019: Trump tweets about “Khan’s Londonistan”, calling him “a national disgrace”
2022: Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency
July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”
Sept 2025 Trump blames Khan for London’s “stabbings and the dirt and the filth”.
Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”
More from Neighbourhood Watch:
Racecard
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
PROFILE OF SWVL
Started: April 2017
Founders: Mostafa Kandil, Ahmed Sabbah and Mahmoud Nouh
Based: Cairo, Egypt
Sector: transport
Size: 450 employees
Investment: approximately $80 million
Investors include: Dubai’s Beco Capital, US’s Endeavor Catalyst, China’s MSA, Egypt’s Sawari Ventures, Sweden’s Vostok New Ventures, Property Finder CEO Michael Lahyani
MISSION: IMPOSSIBLE – FINAL RECKONING
Director: Christopher McQuarrie
Starring: Tom Cruise, Hayley Atwell, Simon Pegg
Rating: 4/5
UAE currency: the story behind the money in your pockets
Who was Alfred Nobel?
The Nobel Prize was created by wealthy Swedish chemist and entrepreneur Alfred Nobel.
- In his will he dictated that the bulk of his estate should be used to fund "prizes to those who, during the preceding year, have conferred the greatest benefit to humankind".
- Nobel is best known as the inventor of dynamite, but also wrote poetry and drama and could speak Russian, French, English and German by the age of 17. The five original prize categories reflect the interests closest to his heart.
- Nobel died in 1896 but it took until 1901, following a legal battle over his will, before the first prizes were awarded.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
How Filipinos in the UAE invest
A recent survey of 10,000 Filipino expatriates in the UAE found that 82 per cent have plans to invest, primarily in property. This is significantly higher than the 2014 poll showing only two out of 10 Filipinos planned to invest.
Fifty-five percent said they plan to invest in property, according to the poll conducted by the New Perspective Media Group, organiser of the Philippine Property and Investment Exhibition. Acquiring a franchised business or starting up a small business was preferred by 25 per cent and 15 per cent said they will invest in mutual funds. The rest said they are keen to invest in insurance (3 per cent) and gold (2 per cent).
Of the 5,500 respondents who preferred property as their primary investment, 54 per cent said they plan to make the purchase within the next year. Manila was the top location, preferred by 53 per cent.
Indika
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How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
