Gemessen an der Kaufkraft eines britischen Pfund Sterling (GBP) im Jahr 2019 lag die Kaufkraft in den vergangenen Jahrhunderten erheblich höher: Ein GBP im Jahr 1209 war mehr als zweitausendmal so viel Wert wie ein GBP im Jahr 2019.

When converted to the value of one US dollar in 2020, goods and services that cost one dollar in 1700 would cost just over 63 dollars in 2020, this means that one dollar in 1700 was worth approximately 63 times more than it is today. This data can be used to calculate how much goods and services from the years shown would cost today, by multiplying the price from then by the number shown in the graph. For example, an item that cost 50 dollars in 1970 would theoretically cost 335.5 US dollars in 2020 (50 x 6.71 = 335.5), although it is important to remember that the prices of individual goods and services inflate at different rates than currency, therefore this graph must only be used as a guide.

Between 1688 and 1968, Britain was arguably involved in more wars than any other nation or empire on the planet. During this 280 year period, the British government's investment into it's military strength increased greatly, and this level of investment allowed Britain to become the most powerful nation in the world for the majority of this period. Inflation rates and fluctuation of the pound Sterling's value make it difficult to compare military spending over extended periods of time, however, if we look at when the largest increases occur over short periods of time, then we can see a correlation between Britain's involvement in major wars and also times of great empirical expansion. Rule Britannia Before the twentieth century, Britain was able to become the world's hegemonic power (or the closest thing to it) because of it's military and naval might. In the past, some historians argued that Britain rose to this status accidentally, however it was their investment in military and naval capabilities that allowed them to colonize other civilizations, protect trade routes, and eliminate competition or threats. For example, Britain lost one of it's largest sources of income when the US gained independence in the late 1700s, therefore the government invested five times more money into it's navy than into the army (in 1785), in order to protect it's other colonies and trade routes, and to expand into other parts of the world. In the nineteenth century, the largest influx of cash into the military came in 1815, the same year that Britain and it's allies finally defeated Napoleon. The end of the Napoleonic Wars marked the beginning of the 'Pax Britannica', (1815-1914) which was a century of relative peace between the major European powers, and further expansion of the British Empire. Twentieth Century There was a large increase in military expenditure at the turn of the twentieth century, as the British Empire pushed further into new territories, particularly in Africa (in what is now known as the 'Scramble for Africa'). However, the largest increases came directly after both World Wars. It is also important to note that new budgets were introduced for the Air Force in the First World War, and then for Central Defense following the Second World War. Unfortunately there is no correlating data for the years during the World Wars, as the country was in a state of national emergency during these times, and parliament's system for budget allocation was different than in traditional years. Following the Second World War, Britain's investment in all military branches has increased exponentially, and today, Britain has the seventh highest military budget in the world.