British defence budget
If people are wondering what the British defence budget is spent on apart from the obvious such as the wars we're fighting, the billions being spent on new warships, our nuclear deterrent, our state of the art spy satellites, our new aircraft (Chinooks, Eurofighters, Super lynxes, the new Nimrods etc.) then I can tell you.
It's spent defending our overseas territories such as the Falklands, the South Georgian islands, our Indian ocean islands and so on. If we did not maintain a prescience on the Falklands the Argentinians would've tried again by now and it's arguable if we just let the Falklands slip then places like Spain might think we don't care anymore and try and seize places like Gibraltar.
Britain has influence across the world thanks to it's overseas territories, and it's arguable that our military influence is all we have left allowing us to remain a major world player. Without it we'd be a piddly excuse for a country with no world standing, although some might argue that's not necessarily a bad thing.
Is it worth it? well, from a financial point of view yes, £60bn spent on the military each year puts us in a position where we can make far more than that back due to getting beneficial deals across the world both militarily (loaning islands like Diego Garcia to the US) and commercially in that we get favourable deals for helping foreign nations fight their evils whether it's piracy, drug runners or whatever. It also allows us to get favourable deals through force however, see Iraq for example.
So commercially, having the military we have is certainly not a bad thing financially even though the £60bn sounds bad up front, it's not when you consider the amount it nets us in return - our GDP for 2008 was about £1,800 billion, £60 bn pales in comparison really.
The only real question then is if it's morally a good idea, should we really be using force to get a strong economy and a strong position in the international community? Germany is a good example of a country that doesn't really make much use of force nowadays to be strong, so it's certainly possible.
One things for sure though, the £60 bn certainly isn't wasted, it's quite a good investment.