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British Prime Minister Keir Starmer has announced plans to significantly increase the United Kingdom’s defense spending, aiming to reach 3% of GDP in the coming years. The decision came on the eve of his crucial meeting with U.S. President Donald Trump in Washington.

While addressing the Parliament on February 25, 2025, Starmer detailed his commitment to raise military expenditure from the current 2.3% of Britain’s Gross Domestic Product (GDP) to 2.5% by 2027, with a further increase to 2.6% in 2028. This move signifies the most substantial and sustained augmentation of the UK’s defense budget since the conclusion of the Cold War.

“This government will begin the biggest sustained increase in defense spending since the end of the Cold War,” Starmer declared, emphasizing the necessity of bolstering national security in response to evolving global threats.

Starmer also articulated an ambitious objective to elevate defense spending to 3% in the subsequent parliamentary term, anticipated to commence by 2029. However, he noted that achieving this target would be conditional upon the prevailing fiscal conditions at that time.

It is my first duty as Prime Minister to keep this country safe.

That is why we are increasing defence spending to 2.5% of GDP from April 2027.

In an ever more dangerous world, it’s vital that we protect British people at home.

— Keir Starmer (@Keir_Starmer) February 25, 2025

Transatlantic alliance

In his address, Starmer underscored the importance of maintaining robust alliances across the Atlantic, particularly considering recent policy divergences. “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,” he asserted.

Highlighting the significance of the UK’s relationship with the United States, Starmer stated, “This week when I meet President Trump, I will be clear: I want this relationship to go from strength to strength.” This statement comes as President Trump has been vocal in urging NATO member countries to escalate their defense spending to 5% of GDP, coupled with indications that the U.S. may reassess its role in ensuring Europe’s security.

Funding the defense increase

To finance the proposed defense budget expansion, Starmer announced a controversial decision to reduce international development spending from 0.5% to 0.3% of Britain’s GDP in the forthcoming years. “That is not an announcement I am happy to make,” he admitted, acknowledging the difficult trade-offs involved. He further explained that the defense increase “can only be funded through hard choices.”

This reallocation of funds has elicited strong reactions from various humanitarian organizations. WaterAid, an organization dedicated to providing clean water access, described the move as a “cruel betrayal of people living in poverty globally.”

Several humanitarian organizations condemned the British government’s step to reduce the allocation of funds to international development spending. Moazzam Malik, CEO of Save The Children UK, expressed concern that the cuts will “make the world a more dangerous place for children now and in the future.”

Similarly, Hannah Bond, co-CEO of ActionAid UK, criticized the decision as “reckless,” stating that “there is no justification for abandoning the world’s most marginalized time and time again to navigate geopolitical developments.”

Economic implications

The financial implications of this policy shift are substantial. The increase would result in the UK spending an additional $16.9 billion annually on defense by 2027 compared to current levels. This figure accounts for projected GDP growth over the period. As of the 2023/24 financial year, the UK’s defense expenditure stood at $68.2 billion.

International reactions

The announcement has garnered attention from international allies. U.S. Defense Secretary Pete Hegseth lauded the UK’s decision, remarking, “A strong step from an enduring partner.” This endorsement reflects the U.S. administration’s encouragement for NATO allies to assume greater responsibility for collective security.

Conversely, the reduction in international aid has been met with criticism from global development organizations. Romilly Greenhill, CEO of Bond, a network of organizations focused on international development, described the move as a “short-sighted and appalling” decision.

Timing of announcement

Prime Minister Starmer’s announcement is strategically timed ahead of his meeting with President Trump. It signals the UK’s intent to lead European efforts in enhancing defense capabilities, especially considering President Trump’s calls for increased defense spending among NATO allies.

NATO Secretary General Mark Rutte has also advocated for member states to elevate defense spending beyond the longstanding 2% GDP benchmark established a decade ago. According to NATO data from 2024, the UK ranked as the third-largest defense spender in absolute terms, following the United States and Germany.

In the broader European context, Germany’s prospective Chancellor, Friedrich Merz, has also pledged to significantly boost defense spending. However, he faces potential challenges from far-right and left-wing parties that may oppose such increases.

As Prime Minister Starmer prepares for discussions in Washington, his commitment to augmenting defense spending serves as a reaffirmation of the UK’s dedication to collective security. By proactively addressing defense funding and seeking to strengthen transatlantic alliances, the UK aims to navigate the complexities of global security dynamics and ensure a unified approach to emerging threats.

This policy shift not only reflects the UK’s response to changing geopolitical landscapes but also underscores the nation’s resolve to play a pivotal role in maintaining international peace and stability.