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Watch as Sir Keir Starmer holds a press conference on Tuesday, 25 February, after announcing he will slash the foreign aid budget to hike defence spending to 2.5 per cent of GDP to counter “tyrants” like Vladimir Putin.
The prime minister said spending on defence will rise from its current 2.3 per cent share of the economy to 2.5 per cent in 2027, meaning spending £13.4bn more every year from 2027.
Sir Keir has acknowledged the increase will require what he described as “extremely difficult and painful choices”.
The PM said he wants the figure to reach 3 per cent of gross domestic product during the next parliament.
However, to fund it development assistance aid will need to be slashed from its current level of 0.5 per cent of gross national income to 0.3 per cent in 2027.
Sir Keir said the plan amounts to “the biggest sustained increase in defence spending since the end of the Cold War”.
His move comes just a day before he travels to Washington for a crunch meeting with Donald Trump, who has repeatedly pushed Nato countries such as Britain to bolster their armed forces as he seeks to negotiate an end to Russia’s invasion of Ukraine.
Sir Keir will hope the spending boost, which he said will mean an extra £13.4 billion for defence every year from 2027, will placate Mr Trump, who wants Europe to be less reliant on the US for support.
