Proposal for Financing Defense Expenditures with High Taxes on the Middle Income Group

The think tank Resolution Foundation has stated to UK Defense Secretary John Healey that the tax burden on individuals in the middle income group needs to be increased to boost defense spending. Healey emphasized that pressure on defense spending has increased since leaving the Keir Starmer government. With the start of his new role, he expressed that he expects to present a plan to meet the commitment of allocating 3.5% of GDP to defense by 2035.

Resolution Foundation highlighted that Healey needs to collect more taxes from average workers to provide an annual funding of £28 billion. The organization noted that the total tax increases since 2024 amount to £70 billion, yet argues that the UK's tax burden is still low by international standards. The organization's chief economist James Smith stated, "The UK collects less tax on average earnings compared to other developed countries."

Smith pointed out that countries with higher public spending generally receive more contributions from average workers. Additionally, when comparing the UK with similar countries, he emphasized that another OECD country with a larger state does not have a lower tax burden on average workers. This situation indicates that political promises are unrealistic.

John Healey will have to find £1.4 billion annually to finance Starmer's defense investment plan in his first budget to be presented on October 28. Furthermore, the government is expected to take more measures to protect households against energy bills and ensure young unemployed individuals can participate in employment. In this process, the participation of the middle income group in tax increases is critically important for sharing the benefits of defense spending with a broader segment.