Government

UK plans defence spending increase and aid budget cut

Tuesday 25 February 2025 - 16:31

The United Kingdom intends to raise its annual defence budget to 2.5% of GDP by 2027, Prime Minister Keir Starmer announced. This move is part of the UK’s strategy to strengthen Europe’s security.

In his speech before departing to meet US President Donald Trump in Washington, Starmer shared with Parliament that the UK would advance this spending increase to support Europe while the US leads discussions with Russia on the war in Ukraine. The UK will allocate an additional £13.4 billion ($17bn) per year for defence starting in 2027. For context, the Ministry of Defence noted that £53.9 billion ($68.3bn) was spent on defence in the 2023-2024 fiscal year.

Starmer emphasized the need for all European allies to contribute more to the continent's defence. To fund the defence increase, Starmer outlined a 40% reduction in the country’s international aid budget. The UK will cut its aid spending from 0.5% to 0.3% of GDP by 2027. Although he expressed disappointment over the decision, Starmer explained that this adjustment is necessary to bolster Ukraine and Europe’s security in the current geopolitical climate.

In November 2020, the UK already reduced its aid budget from 0.7% to 0.5% of GDP during the COVID-19-induced economic crisis. Starmer will meet with Trump later this week to affirm the UK’s role in leading European nations in offering greater support to the US-led NATO military alliance, echoing Trump’s demand for countries to spend 5% of their GDP on defence.

Additionally, Starmer aims to reassure Trump that Europe will provide security guarantees to Ukraine if peace negotiations with Russia succeed.

On Monday, French President Emmanuel Macron met Trump with similar objectives. Macron emphasized Europe’s commitment to strengthening its role in defence, security, trade, and investment. Meanwhile, Trump has been pushing for US-Russia talks without Ukraine or European leaders, a proposal that has raised concerns within Europe about Washington’s dedication to European security.

Trump stated that significant progress had been made towards ending Russia’s war in Ukraine, and reiterated that Europe, rather than the US, should bear the responsibility for ensuring Ukraine’s long-term security.