Britain announces biggest defence spending increase since Cold War

The UK Ministry of Defence said it would spend $68.3bn in the 2023/24 financial year.

Britain is planning its biggest increase in defence spending since the Cold War, aiming to reach 2.5% of GDP by 2027, with a view to increasing it to 3% thereafter.

British Prime Minister Keir Starmer announced such intentions on the eve of his trip to the United States, Reuters writes . As he noted during his speech in the British parliament, such a step is being taken in order to offer Europe greater support against the backdrop of US negotiations with Russia.

“This government will embark on the biggest sustained increase in defence spending since the end of the Cold War,” Starmer said, adding that together with spending on the intelligence services it would reach 2.6% of GDP from 2027.

This means that Britain will spend £13.4 billion ($17 billion) more on defence each year from 2027. The UK Ministry of Defence said it spent £53.9 billion ($68.3 billion) in the 2023/24 financial year.

With public spending in Britain already stretched thin, Starmer said this increase in defence spending would be paid for entirely by cutting international aid by 40%. He said this was a necessary step to offer Ukraine and Europe support in a “new era”. The international aid budget would be cut from 0.5% of gross national income to 0.3% in 2027.

The last time the UK cut its aid budget was in November 2020, during the economic crisis caused by the COVID-19 pandemic, a move that was widely criticised.

Europe increases defense spending

British Defence Secretary John Healey said the kingdom had increased defence spending by almost £3 billion ($3.8 billion) this year.

Denmark also plans to increase its defense spending to more than 3% of economic output to counter threats from Russia. The country will spend an additional $17 billion by 2033.

Earlier, NATO Secretary General Mark Rutte called on Europe to increase defense spending . He noted that a third of NATO member states have already reached defense spending of 2% of GDP, but this is not enough to ensure security in the future.

In mid-February, the FT wrote that Russia’s military budget exceeded the defense spending of the EU countries combined.

(C)UNIAN 2025