Defending Britain against Russia costs taxpayers more than £2.5billion per year, according to an independent report.
Dubbed the ‘Putin Tax’, Britons are suffering a huge economic hit due to cyber-attacks and other hostile foreign state activity.
Russia originated illegal cyber activity is estimated to have cost this country £1.5billion while damage to subsea cables beneath the Atlantic is priced at up to £500million, the report sets out.
A further £500million loss has been confirmed in the private sector following attacks on companies such as Jaguar Land Rover, Royal Mail and NHS suppliers.
There are also unquantified costs to the UK state such as additional resilience spending and higher insurance premiums.
Those costs are also expected to rise in the coming years as Russia steps up its hybrid-warfare campaign against Britain.
Russian President Vladimir Putin has authorised a hybrid warfare campaign against Ukraine’s allies, particularly Britain. The financial cost of defending this country against Kremlin cyber attacks and other tactics has been quantified for the first time.
The research by Graeme Downie MP was published yesterday. Tom Keatinge, from the Royal United Services Institute (RUSI), said: ‘The economic consequences of hostile activity must inform the government’s assessment of the threat, its responses and the resources it commits. Understanding the price Britain already pays is essential to protecting its future.’
There have been more than 300 Russian-linked cyber incidents in the UK since 2022. It is estimated that three out of four incidents affecting this country’s critical national infrastructure are instigated by hostile states.
The report comes as the Labour government comes under increasing pressure to say how it will meet crucial defence spending targets such as 3 per cent of GDP by 2030 and the Nato standard of 3.5 per cent by 2035.
