As the UK faces a period of profound change, with conflicts overseas undermining security and prosperity at home, the Prime Minister has set out that his commitment to increase spending on defence to 2.5% of GDP from April 2027.
He has also set an ambition to spend 3% of GDP on defence in the next parliament, as economic and fiscal conditions allow, in order to keep the British people safe and secure for generations to come.
As set out in the Plan for Change, national security is the first duty of the government. In recent years, the world has been reshaped by global instability, including Russian aggression in Ukraine, increasing threats from malign actors, rapid technological change, and the accelerating impacts of climate change.
The Prime Minister has set out how the UK will be stepping up to meet this generational challenge with a generational response.
The announcement comes the day after the third anniversary of Russia’s barbaric illegal war in Ukraine and shows that the UK will step up and meet this pivotal moment of global instability head-on, with a commitment that will see the biggest sustained increase in defence spending since the Cold War.
The Prime Minister knows that the working people of Britain have paid the cost of malign actors abroad, whether through increased energy bills, or threats to British interests and values. He is committed to making the country safer, more secure, and increasingly resilient against these interconnected threats.
This announcement demonstrates the UK’s global leadership in this space. In calls with foreign leaders over the weekend, the Prime Minister reiterated the UK’s commitment to securing a just and enduring peace in Ukraine and the need for Europe to step up for the good of collective European security.
The investment in defence will protect UK citizens from threats at home but will also create a secure and stable environment in which businesses can thrive, supporting the Government’s number one mission to deliver economic growth.
The increased spending will sustain our globally competitive industry, supporting highly skilled jobs and apprenticeships across the whole of the UK. In 2023-24, defence spending by the UK Government supported over 430,000 jobs across the UK, the equivalent to one in every 60.
68% of defence spending goes to businesses outside London and the South East, bolstering regional economies from Scotland to the North West. Through the upcoming Defence Industrial Strategy, this substantial investment will drive R&D and innovation across the UK, including developing technologies such as AI, quantum and space capabilities.
Prime Minister Keir Starmer said:
“It is my first duty as Prime Minister to keep our country safe. In an ever more dangerous world, increasing the resilience of our country so we can protect the British people, resist future shocks and bolster British interests, is vital.
“In my Plan for Change, I pledged to improve the lives of people in every corner of the UK, by growing the economy. By spending more on defence, we will deliver the stability that underpins economic growth, and will unlock prosperity through new jobs, skills and opportunity across the country.
“As we enter this new era for national security, Britain will once again lead the way.”
In addition to the plan to reach 2.5%, the Prime Minister also announced that the definition of defence spending will be updated to recognise what our security and intelligence agencies do to boost our security, as well as our military. This change means that the UK will now spend 2.6% of GDP on defence in 2027.
This shift recognises that the activities of our intelligence increasingly overlap and complement that of our Armed Forces, emphasising the need for total deterrence against the modern hybrid threats we face, from cyber-attacks to sabotage.
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