Russia's 'Putin Tax' is costing UK taxpayers and businesses up to £2.5bn a year, report warns
From the Newshound archive · first published 7 October 2026 · last updated 8 October 2026.
Vladimir Putin, whose Kremlin-directed hybrid warfare campaign is estimated to be costing UK taxpayers and businesses between £2 billion and £2.5 billion a year, according to a landmark new report.
Britain's economy is taking an annual hit of between £2bn and £2.5bn from Russia's hybrid war, according to the first rigorous effort to quantify the financial damage of Kremlin hostility. Labour MP Graeme Downie and postdoctoral researcher Dominic Reed authored the report, which found that Russia-linked cyber attacks are responsible for roughly £1.47bn of that toll, while subsea cable sabotage accounts for up to £500m more. Confirmed attacks on firms including Jaguar Land Rover, Royal Mail and NHS suppliers have already generated estimated losses of up to £2.1bn in total.
Downie warns Britain cannot deter Russia without being 'honest' about the costs Putin's shadow war is already imposing on ordinary taxpayers.
Over 300 Russian-linked cyber incidents have hit the UK since 2022, with three in four attacks on critical national infrastructure traced to hostile states.
The report lands as Burnham's government faces mounting pressure to meet NATO's 3.5% of GDP defence target by 2035 — while ministers admit they hold no official estimates of what Kremlin attacks are costing.
