I'm a bit more worried about this because I have some family members that will be eligible for this and I know how bloody awful military life can be.

https://www.bignewsnetwork.com/news/274385196/british-pm-announces-mandatory-conscription-plans

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What’s the penalty for refusing?

As far as I'm aware, they haven't announced the consequences, yet. Plenty of folk are already outraged by it though.

If it’s just a fine then you might be better off just paying it. Otherwise, consider leaving. Citizenship is a shitcoin.