BAE Systems announced record profits this year of more than 3bn, buoyed by increased defence spending linked to the Israel-Gaza conflict and Russia's war in Ukraine. The decision to scrap support for the aid aircraft is thought to have been made in order for the defence firm to pursue projects related to Nato members' 5% increase in spending on arms.
Russia plans to raise tax to fund its defence budget as oil revenues decline. Despite Western sanctions, Russia's military spending has fuelled its war economy. Three years into the war in Ukraine, growth is stalling, energy revenues are plunging, and the budget deficit is widening. To shore up state coffers, Russia is raising the value-added tax from 20 percent to 22 percent, among other measures.
Spending more on defence will be pointless unless western governments also tackle the climate crisis in poor countries, the UN's departing chief of international development has warned. The more you restrict your ability to act by simply focusing on what's happening inside your country, the more vulnerable you become, said Achim Steiner, who recently completed his second term as administrator of the UN Development Programme (UNDP), which works on overseas aid and lifting people out of poverty.
To lower the cost of defence and transport spending, the UK Government is considering reducing tax reliefs, particularly on pensions and inheritance tax, as suggested by tax experts.
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