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Britain's Chancellor of the Exchequer George Osborne speaks as he appears on the BBC's Andrew Marr Show, in London England. Image Credit: REUTERS

Now that the general election is out of the way, it is heartening that the new government in Britain has so quickly addressed the security challenges. Wednesday’s budget commitment to spend 2 per cent of gross domestic product on defence, as Nato requires, is a bold step and undoubtedly the right thing to do.

As Prime Minister David Cameron and Chancellor of the Exchequer George Osborne know, the first responsibility of any government is to preserve the security of the realm and its citizens. Particularly, when faced with the threat of Daesh (the self-proclaimed Islamic State of Iraq and the Levant), a resurgent Russia and the kind of global uncertainty that drives hundreds of thousands of migrants towards European shores.

In Europe itself, the British prime minister now clearly understands the need for leadership — showing fellow Nato member states that their commitment to the military alliance must be met with hard cash, not cheap words. And while Britain’s allies should take note of its budget, those who wish to harm the United Kingdom should realise that Britain takes its security very seriously.

Wednesday’s undertaking means that Britain’s armed forces will be provided with the cash they need to fund good levels of equipment and the training that is so key to their morale and motivation, as well as affecting their overall ability to do their job. Only two weeks ago, 21 members of the House of Lords voiced their concerns about our declining military spending. I was among them.

But now I am reassured, and I suspect many of my noble colleagues will feel the same. But let’s be clear: Wednesday’s announcement does not represent carte blanche to embark on a spending spree. But it does lift the threat of further cuts on equipment programmes and staffing levels. Crucially, the service chiefs now have certainty against which they can plan. Several senior staff were concerned that with the budget coming before the Strategic Defence and Security Review (SDSR, due later this autumn), military planning would be driven foremost by how to save money, and not the real, strategic requirements of the world today. That risked putting the cart before the horse, and is the kind of thinking that leads to aircraft carriers without crews, and further cuts in frontline regiments in the army.

Now, happily, the SDSR can proceed with the proper balance between the UK’s security challenges and our economic position. The spending announcement will also be very welcome news in Washington, reaffirming Britain’s status as a dependable ally of the United States.

For too long now, service chiefs in America have fretted about Britain’s apparent military decline, with many voices declaring that it was becoming less capable, less reliable and not their partner of choice. Now those very understandable worries can be dispelled and Britain can restate, in the firmest possible terms, its clear strategic alliance with the greatest power on the planet.

Not that it should ever forget that defence is about more than hard power. Diplomacy, combined with skilful use of British overseas development budget and backed by a strong military, is a mix that can see the UK achieve great influence across the world. But when the defence leg of this three-legged stool is weak, the whole thing collapses. Soft power requires a core of steel.

It is even more encouraging that this core has been reinforced in the Budget with a greater integration between Britain’s armed forces and its intelligence and security services. Perhaps the key point, however, is that UK’s soldiers, sailors, airmen and marines — and their families — can now have the confidence that their needs are being properly looked after. These are men and women willing to make the ultimate sacrifice in defence of the country. It is only fitting that the UK is prepared to give them the kit and support they deserve and require, within the context of the armed forces covenant.

With his budget, the chancellor of the exchequer made his support clear. All of Britain — both in uniform and the civilian sphere — should feel that it can look upon the future with greater security as a result.

— The Telegraph Group Limited, London, 2015