Keir Starmer has confirmed significant reductions to Britain’s international aid budget to fund a major increase in defense spending. This move comes as European nations aim to fill the void left by Donald Trump’s policies regarding Ukraine.
The Prime Minister affirmed the UK government’s commitment to increasing defense spending to at least 2.5% of GDP by 2027 – three years earlier than initially planned. He is preparing for a diplomatically challenging visit to Washington DC. Starmer also expressed an ambition to potentially increase defense spending to 3% during the next parliament.
However, this increase in defense spending will be funded by a “painful choice” to cut the aid budget from 0.5% of GDP to 0.3%. Starmer stated that the defense and security of the British people is the top priority of his government.
The Guardian had previously reported on the Prime Minister’s plan to boost UK defense spending by cutting aid funding. This comes in the context of ongoing tensions with Russia and pressure on the UK to increase its defense capabilities further than initially promised.
Defense sources have emphasized that the planned increase might still not be enough to adequately rebuild and transform the armed forces, with calls for a rise to at least 3% of national income to bolster military capabilities in the light of the US potentially withdrawing its support for Ukraine.
While Labour had previously promised to increase the aid budget when fiscal conditions allow, recent considerations have included cutting it instead to fund increased defense spending. This has raised concerns, with David Lammy, the Foreign Secretary, warning that Donald Trump’s plans for drastic cuts to the US’s international aid budget could allow China to extend its global influence. Simon McDonald, the former head of the Foreign Office, has also cautioned that such cuts would harm Britain’s international reputation.
Source: https://www.theguardian.com/politics/2025/feb/25/starmer-planning-big-cuts-to-aid-budget-to-boost-defence-spending-say-sources
