UK Boosts Defence Spending to 2.5% by 2027, Slashes Foreign Aid Amid Global Tensions
An additional £13.4 billion allocated annually from 2027, it will bolster the UK’s military capabilities, modernise its armed forces, and replenish depleted stockpiles.
In a bold move signaling a shift in national priorities, UK Prime Minister Keir Starmer has announced an accelerated increase in defence spending to 2.5 per cent of GDP by 2027, funded by a significant cut to the foreign aid budget. The decision, unveiled in Parliament, brings forward a Labour manifesto pledge by three years and reflects growing concerns over European security, particularly as U.S. President Donald Trump presses NATO allies to shoulder more responsibility amid talks to end the Ukraine-Russia conflict.
Starmer outlined that the hike, amounting to an additional £13.4 billion annually from 2027, will bolster the UK’s military capabilities, modernise its armed forces, and replenish depleted stockpiles. He also set an ambitious target of reaching 3 per cent of GDP in the next parliamentary term, contingent on Labour’s re-election in 2029. “We are at a turning point,” Starmer told MPs, citing “tyrants like Vladimir Putin” and the need to respond to a “dangerous new era” with strength and resolve.
To finance this, the overseas development assistance (ODA) budget will drop from 0.5 per cent to 0.3 per cent of gross national income starting in 2027 - a 40 per cent reduction. Starmer called it a “painful choice”, insisting it was necessary to prioritise national security over international aid commitments, though he reaffirmed Labour’s long-term goal of restoring ODA to 0.7 per cent when fiscal conditions allow. Remaining aid will focus on Ukraine, Sudan, Gaza, and climate initiatives, but critics warn other vital programs will suffer.
The announcement, made days before Starmer’s visit to Washington to meet Trump, drew mixed reactions. Defence advocates, including Conservative leader Kemi Badenoch, welcomed the spending boost, though some, such as former Defence Secretary Ben Wallace, dubbed the 0.2 per cent immediate increase “weak” given global threats. Charities, however, were incensed. Save the Children branded it “a betrayal of the world’s most vulnerable,” while Bond, a UK aid network, called it “reckless”, predicting dire consequences for millions in crisis zones.
The timing suggests a strategic nod to Trump’s demands for Europe to step up, especially as the U.S. reevaluates its role in NATO and Ukraine. Starmer denied being pressured, asserting it was “my decision” driven by three years of escalating tensions since Russia’s invasion of Ukraine. As the UK repositions itself on the global stage, this pivot underscores a pragmatic trade-off between military might and humanitarian outreach, stirring debate over its long-term impact on Britain’s international standing.
