'We have to fight for peace': PM announces biggest defence spending rise since Cold War while cutting foreign aid
25 February 2025, 18:27
Keir Starmer has announced a boost in UK defence spending to 2.5 per cent of GDP by 2027 while cutting foreign aid.
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Sir Keir said the increase was in response to "tyrant" Vladimir Putin and uncertainty over US President Donald Trump's commitment to European security.
He is set to hold crucial talks with Trump in Washington this week.
Speaking during a press conference on Tuesday, Sir Keir said it is time to "fight for peace" as he warned of a "dangerous new era".
Asked if Brits should be alarmed about growing tensions, the PM said: "This is a significant moment, and that is why we've got to rise to this generational challenge.
"It is a moment where we have to fight for peace, through the action that we take."
US defence secretary Pete Hegseth welcomed the announcement ahead of the PM's trip to the US, calling it a "strong step from an enduring partner".
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 to raise defence spending to 2.5% by 2027
Put to him that Trump had bounced him into the decision, Sir Keir said: "I think in our heart of hearts, we've all known that this decision has been coming for three years, since the beginning of the conflict in Ukraine.
"The last few weeks have accelerated my thinking on when we needed to make this announcement.
"It is absolutely clear to me now that the decision needs to be taken now to rise to the challenge that we have to face.
"The conflict in Ukraine is about the sovereignty of Ukraine, but it's also about security and defence in Europe, and our security and defence, and the first duty of government is to ensure that its citizens are secure and that is why I'm taking that as a matter of duty and responsibility today."
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Addressing Parliament earlier in the day, 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.
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"
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.
"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).
"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."
