With the UK in the relatively early stages of the Covid-19 pandemic, a substantial level of uncertainty surrounds the country’s defense budget in the coming years. Budget predictions are frequently based on GDP projections and government statistics on spending, the updates of which only precipitate further into a crisis such as Covid-19. Subsequently, it is challenging to provide one single forecast for the forthcoming fiscal years.
The impact of Covid-19 is largely dependent on the duration of its spread, particularly whether its effects can be mitigated earlier or later. To address these difficulties GlobalData has produced three scenarios for the UK defense budget up until Fiscal Year (FY) 2024: Pre-Covid-19 scenario, GDP Percentage Status Quo scenario, and Austerity scenario.