The UK government must control inflation if it is to give industry the chance to deliver the capabilities the armed forces need, argues Matthew Smith With the UK a year into the global credit crunch and possibly already in a recession, Jane's views the country's defence industry as somewhat more resilient than other sectors of the economy. This resilience has been a result of the relative lack of debt on UK defence companies' balance sheets and therefore reduced exposure to tight-ening credit conditions; revenues that are driven by government rather than consumer spending; medium-term revenue visibility through the fixed three-year government defence budget, set under the Comprehensive Spending Review (CSR); access to long-term government contracts; and access to export markets.
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