Defence spending increased to 2.5 % of GDP

The prime minister has announced plans to increase spending on defence to 2.5 per cent of GDP from April 2028, with further ambition to reach 3 per cent in the next parliament.

The announcement came after the day after the third anniversary of Russia invasion of Ukraine and marks the biggest sustained increase in defence spending since the Cold War.

It is hoped that the increase will UK citizens from threats at home but will also create a secure and stable environment in which businesses can thrive.

In 2023-24, defence spending by the UK Government supported over 430,000 jobs across the UK.

The money will be used to build a modern and resilient Armed Forces and accelerate the adoption of cutting-edge capabilities that are vital to retain a decisive edge as threats rapidly evolve.

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."

There has also been an update to the definition of defence spending to recognise what security and intelligence agencies do to boost our security, as well as our military. The update means that the UK will now spend 2.6 per cent of GDP on defence in 2027.

The increase will be funded by reducing Overseas Development Assistance (ODA) from 0.5% to 0.3% of GNI and reinvesting it into defence.