Starmer boosts defence spending on eve of US trip

Prime Minister Keir Starmer said on Tuesday he would increase annual defence spending to 2.5% of GDP by 2027 and target a 3% level last seen just after the Cold War, a signal to US President Donald Trump that Britain can help boost Europe's security.

On the eve of his departure to meet Trump in Washington, Starmer told parliament he was bringing the increase in defence spending forward to offer Europe more support as the US spearheads peace talks with Russia over its war in Ukraine.

With public spending already stretched in Britain, Starmer said the increase from its current 2.3% would be fully paid for by a 40% cut to international aid, an announcement he said he was not happy to make but one which was necessary to offer Ukraine and Europe support in a "new era".

"Starting today, I can announce this government will begin the biggest sustained increase in defence spending since the end of the Cold War," Starmer said, adding combined with spending on the intelligence services it would reach 2.6% from 2027.

"We must go further still. I have long argued that ... all European allies must step up and do more for our own defence," he said, adding that Britain would set a target for spending 3% of gross domestic product in the next parliament, which will convene after a national election due in 2029.

The increase would see Britain spending 13.4 billion pounds ($17 billion) a year more on defence from 2027, Starmer said.

The Institute for Fiscal Studies, a non-partisan think tank, said this seemed "misleadingly large" as an increase of 0.2 percentage points of GDP only amounted to around 6 billion pounds. Britain's defence ministry said it spent 53.9 billion pounds in the 2023/24 financial year.

To meet the increase in spending, the international aid budget will be cut from 0.5% of gross national income to 0.3% in 2027, meaning borrowing levels would not change, Starmer said.

Britain last cut its aid budget in November 2020, during an economic crisis resulting from COVID, reducing the level to 0.5% of GDP from 0.7%, a move criticised by some development groups for diminishing the nation's global influence.

Pre-Trump Visit Gambit

Starmer's statement was a clear opening gambit before meeting Trump in Washington, signalling Britain will try to lead other European countries in offering more support to the

US-led military NATO alliance - a demand Trump has repeatedly made, suggesting nations should spend 5% of GDP