‘Russia is a menace’: PM raises defence spending by £13.4bn a year as he slashes foreign aid

25 February 2025, 12:43 | Updated: 25 February 2025, 17:54

Speaking via video link to a Kyiv conference, the Prime Minister reaffirmed that Britain is ready to commit British troops on the ground in Ukraine in order to maintain peace.
Speaking via video link to a Kyiv conference, the Prime Minister reaffirmed that Britain is ready to commit British troops on the ground in Ukraine in order to maintain peace. Picture: Alamy

By Henry Moore

Delivering an address to Parliament on Tuesday, Sir Keir Starmer announced a boost in UK defence spending to 2.5 per cent of GDP by 2027.

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This bombshell announcement comes ahead of crucial talks with Donald Trump in Washington later this week.

Sir Keir said Britain should be proud of its support for Ukraine in the wake of Putin's invasion but must do more as tensions rise across Europe.

To pay for this £13.4 billion defence hike, Labour will slash foreign aid, just one of the many "hard choices" Britain will face in the coming years, Starmer said.

"Russia is a menace in our waters, in our airspace and on our streets," he told the Commons.

He added: "We must find courage in our history, courage in who we are as a nation, because courage is what our own era now demands of us.

As Prime Minister Keir Starmer heads to Washington DC for his first meeting with President Trump, follow the latest updates as they unfold. Get expert analysis, live reports, and exclusive insights— on Global Player.

Starmer hopes sanctions will force Putin to make concessions over Ukraine

"So starting today, I can announce this Government will begin the biggest sustained increase in defence spending since the end of the Cold War.

"We will deliver our commitment to spend 2.5%. of GDP on defence, but we will bring it forward so that we reach that level in 2027, and we will maintain that for the rest of this Parliament.

"And let me spell it out, that means spending £13.4 billion more on defence every year from 2027."

Even this is not far enough, Starmer continued as he pledged to raise spending to 3 per cent of GDP by the next Parliament.

"At moments like these in our past Britain has stood up to be counted, it has come together and demonstrated strength.

"That is what the security of our country needs now and it is what we will deliver"

Read more: UK should spend 3% of GDP on defence and could send up to 10,000 troops to Ukraine, Boris Johnson tells LBC

Starmer warned "tyrants" like Russian President Vladimir Putin "only respond to strength".

He told MPs: "We should not pretend that any of this has been easy. Working people have already felt the cost of Russian actions through rising prices and bills.

"Nonetheless, one of the great lessons of our history is that instability in Europe will always wash up on our shores, and that tyrants like Putin only respond to strength.

"Russia is a menace in our waters, in our airspace and on our streets. They have launched cyber attacks on our NHS, only seven years ago a chemical weapons attack on the streets of Salisbury.

Donald Trump and Vladimir Putin have reportedly shared their first phone call since the election.
Donald Trump and Vladimir Putin have reportedly shared their first phone call since the election. Picture: Getty

"We must stand by Ukraine, because if we do not achieve a lasting peace, then the economic instability are threats to our security, they will only grow.

"And so as the nature of that conflict changes, as it has in recent weeks, it brings our response into sharper focus, a new era that we must meet as we have so often in the past, together, and with strength."

The British people may face hard choices to pay for this defence hike, the PM warned.

"I equally want to be very clear that like any other investment we make, we must seek value for money and that's why we're putting in place a new defence, reform and efficiency plan, jointly led by my right honourable friends the Chancellor (Rachel Reeves) and the Defence Secretary (John Healey).

Ukrainian President Volodymyr Zelenskyy
Ukrainian President Volodymyr Zelenskyy. Picture: Getty

"This investment means that the UK will strengthen its position as a leader in Nato and in the collective defence of our continent, and we should welcome that role.

"It is good for our national security. It is also good for the defining mission of this Government - to restore growth to our economy."

This bombshell commitment comes ahead of crucial talks with President Trump later this week.

The meeting is backdropped by rising tensions in Europe, with the US seemingly abandoning its commitments to NATO and Ukraine since Trump took office.

Tory leader Kemi Badenoch urged Sir Keir Starmer to avoid tax rises or borrowing more money to fund the defence budget.

She told the Commons: "Can the Prime Minister say in confidence that 2.5% by 2027 is sufficient because we need to look at exactly how we fund this.

"He must not raise taxes further as it will destroy our economy, we need a strong economy to pay for strong defence. "He cannot borrow more, we are already spending more on debt interest than defence. We all know that he must make difficult decisions on spending, he has our support to do that."