On Tuesday, Prime Minister Keir Starmer announced plans to raise annual defense spending to 2.5% of GDP by 2027, aiming to reach a 3% level not seen since the Cold War. This move is intended as a signal to U.S. President Donald Trump that Britain is committed to enhancing Europe's security.
In anticipation of his meeting with Trump in Washington, Starmer informed Parliament that the increase in defense spending is accelerated to bolster Europe's support while the U.S. leads peace negotiations with Russia.
Starmer acknowledged that funding this increase, from the current 2.3%, will entail a 40% reduction in international aid, a decision he described as regrettable but necessary to provide crucial assistance to Ukraine and Europe amidst changing circumstances.
Describing it as the most significant sustained increase in defense spending since the Cold War, Starmer highlighted that this move, combined with intelligence spending, would climb to 2.6% by 2027. He emphasized the need for all European allies to step up their defense efforts, setting a target of 3% of GDP for the next parliamentary term post the 2029 national election.
The U.S. Defense Secretary Pete Hegseth welcomed the spending boost as a positive step from a longstanding ally, emphasizing the importance of strong partnerships.
The planned rise in defense spending would see Britain committing an additional £13.4 billion ($17 billion) annually by 2027, with the funds expected to also stimulate economic growth through job creation and industrial development.
To accommodate this spending increase, the international aid budget will be reduced from 0.5% to 0.3% of gross national income by 2027, ensuring borrowing levels remain stable.
Starmer's announcement precedes his scheduled meeting with Trump, underscoring Britain's commitment to rallying European nations to increase support for the U.S.-led NATO alliance. The initiative aligns with Trump's call for nations to contribute 5% of GDP to defense.
As he heads to Washington, Starmer aims to provide reassurance to Trump that Europe stands ready to offer security guarantees to Kyiv in the event of successful peace negotiations with Russia. He has also expressed openness to British troops providing support alongside other European nations.
In addition, Starmer is seeking a U.S. "backstop" to reinforce European security guarantees, crucial for deterring potential future Russian aggression.
Highlighting the importance of the U.S. alliance, Starmer emphasized his commitment to strengthening the relationship during his upcoming meeting with President Trump.