Accelerating defence spending reshapes the UK’s fiscal priorities and strengthens its NATO commitments, signalling a tougher stance against Russian aggression.
Britain’s defence budget has become a focal point of political debate as Prime Minister Keir Starmer calls for a swifter climb toward the 3% of GDP target. The push comes against a backdrop of heightened Russian activity in Europe and a renewed NATO emphasis on burden‑sharing. While the UK already exceeds the alliance’s 2% guideline at 2.3% of GDP, Starmer’s remarks echo his Munich Security Conference comments that Europe must bolster military readiness and support for Ukraine, suggesting a strategic shift toward more proactive deterrence.
The fiscal dimension of the proposal is equally stark. To fund the planned rise to 2.5% by 2027, the government trimmed its international aid budget, a move that has drawn criticism from humanitarian circles. The Office for Budget Responsibility now projects an additional £17.3 bn will be required to achieve the 3% ceiling by 2029‑30, a sum that will pressure an already strained public purse. Finance Minister Rachel Reeves faces the delicate task of balancing defence imperatives with debt reduction goals, especially as the UK grapples with post‑pandemic economic recovery and inflationary pressures.
For the defence industry, an accelerated spending timetable could unlock new contracts and stimulate domestic production, but uncertainty over the exact allocation of funds remains a concern. A clear investment plan would provide the sector with the predictability needed to scale up capabilities and supply chains. Politically, the debate underscores the tension between security priorities and fiscal prudence, a dynamic that will shape the UK’s strategic posture and its role within NATO over the coming decade.
London — Britain should step up and accelerate its defence spending, Prime Minister Keir Starmer said on Monday, following a report that the government was considering bringing forward its target to spend 3% of economic output on defence.
Britain, which has warned of the risks posed by Russia, said in February 2025 that it would lift annual defence spending to 2.5% of GDP by 2027 and aim for 3% in the next parliament, which is expected to begin after an election due in 2029.
The BBC reported that the government was now exploring ways to reach the 3% target by 2029. It said no decision had been taken, but the government recognised current plans would not cover rising defence costs.
Asked whether he would bring the target forward to 2029, Starmer echoed comments he made at the Munich Security Conference, where he said Europe had united to support Ukraine with the supply of weapons and munitions and to strengthen military readiness.
“We need to step up. That means on defence spending, we need to go faster,” Starmer told reporters on Monday. “We’ve obviously made commitments already in relation to that, but it goes beyond just how much you spend.”
The latest NATO estimates show that Britain spent 2.3% of GDP on defence in 2024, above the alliance’s 2% guideline. But like other European countries, it has faced US pressure to spend more to protect the continent.
Struggling with high debt and spending commitments, the government last year cut its international aid budget in order to fund the hike in defence spending to 2.5% of GDP but is yet to publish an investment plan with spending priorities, something that has frustrated the defence industry.
Britain’s budget watchdog, the Office for Budget Responsibility, said last year that raising defence spending to 3% of GDP would cost an additional £17.3 bn in 2029‑30.
Finance minister Rachel Reeves has struggled to stay on track with her plans to repair the public finances. The BBC said the finance ministry was believed to be cautious about the new defence spending proposals.
A government spokesperson declined to comment on any revised plans, saying that Britain was “delivering the largest sustained increase in defence spending since the Cold War.”
Comments
Want to join the conversation?
Loading comments...