UK ‘wastes billions’ on defence firms that give investors rich returns

Study claims taxpayer is subsidising up to 90% of weapons companies' research and development budgets

The UK government is wasting billions of pounds of taxpayers' money on corporate welfare" for arms manufacturers that is siphoned into massive shareholder returns, a new report claims.

The study, by thinktank Common Wealth, suggests that long-term purchase orders and direct subsidies, which sometimes paid for more than 90% of private defence firms' research and development budgets, were allowing leading defence companies to give billions of pounds to their shareholders.