Prime Minister Sir Keir Starmer has announced a significant shift in government spending priorities, slashing the aid budget to finance a dramatic rise in defence expenditure, citing threats from “tyrant” Vladimir Putin and uncertainty surrounding US President Donald Trump’s commitment to European security.
In a landmark statement, Sir Keir revealed that the UK’s defence spending will rise from its current level of 2.3% of GDP to 2.5% by 2027. This increase will require an additional £13.4 billion in defence spending annually from 2027 onwards. Sir Keir acknowledged that the decision to make such “extremely difficult and painful choices” was necessary to ensure national security. He further expressed his aim to increase defence spending to 3% of GDP during the next parliament.
However, funding this unprecedented surge in defence spending will come at a cost. The UK’s development assistance budget will be reduced, dropping from its current 0.5% of Gross National Income (GNI) to 0.3% by 2027. The Prime Minister described the plan as “the biggest sustained increase in defence spending since the end of the Cold War.”
Taking into account the entire security and intelligence services budget, including defence, the overall share of the economy dedicated to security will rise to 2.6% by 2027.
“We must change our national security posture, because a generational challenge requires a generational response,” Sir Keir told MPs. “That will demand some extremely difficult and painful choices. And through those choices, as hard as they are, we must also seek unity, a whole society effort that will reach into the lives, industries, and homes of the British people.”
Later this week, Sir Keir will travel to Washington for discussions with President Trump, who has repeatedly called on European nations to increase their defence spending. The Prime Minister’s remarks highlighted the necessity for the UK to respond to shifting geopolitical dynamics.
In an address to the Commons, Sir Keir said: “One of the great lessons of our history is that instability in Europe will always wash up on our shores, and that tyrants like Putin only respond to strength.” He added that the UK must continue its support for Ukraine, but with an awareness that the nature of the conflict is evolving, and that this required a more focused response from the UK.
The announcement follows growing tension over President Trump’s diplomatic overtures to Russian President Putin, which have raised concerns about the future of the transatlantic alliance. The UK Prime Minister emphasised that the UK must not choose between its allies. “We must reject any false choice between our allies, between one side of the Atlantic or the other. That is against our history, country, and party, because it’s against our fundamental national interest.”
The Prime Minister also underlined the enduring strength of the US-UK relationship, stating, “The US-UK relationship has survived countless external challenges in the past. So this week, when I meet President Trump, I will be clear I want this relationship to go from strength to strength.”
While focusing on the UK’s relationship with the US, Sir Keir also stressed the importance of bolstering cooperation with European leaders. He revealed that he had been in regular talks with European counterparts and was committed to finding “new ways to work together” with European allies.
The upcoming increase in defence spending, alongside cuts to foreign aid, marks a pivotal moment in the UK’s national security strategy, reflecting the Prime Minister’s view that the country must adapt to a rapidly changing global landscape.
