British media: Starmer plans to slash UK aid budget to fund boost in defence spending

Keir Starmer is reportedly planning significant cuts to the UK’s international aid budget in a bid to fund an increase in defence spending, according to sources close to the matter.

The shift comes as European nations, seeking to fill the gap left by Donald Trump’s withdrawal of support for Ukraine, move to bolster their own military capabilities.

Sources told The Guardian that Starmer is expected to confirm the UK government’s plan to raise defence spending to at least 2.5% of GDP by 2030, per Caliber.Az.

This announcement will coincide with what is expected to be a diplomatically challenging visit to Washington DC. However, sources noted that Starmer will face continued pressure to further ramp up defence spending after pledging that the UK would “play its full part” in deploying peacekeeping forces to Ukraine if a durable peace deal with Russia were reached.

Defence sources have emphasized that an increase to 2.5%, up from the current 2.3%, is insufficient to address the military’s rebuilding needs. “An eventual hike to at least 3% of national income will be necessary to rebuild and transform the armed forces,” said one source, stressing the need for a more substantial increase.

The Guardian's sources also indicated that Starmer’s government is considering slashing the foreign aid budget by as much as half to free up funds for defence. This comes after the new US administration signalled its own retreat from support for Ukraine, leaving European nations to step in. Labour had previously promised to increase the aid budget from 0.5% to 0.7% of GDP when “fiscal conditions allow,” but officials are now exploring cuts as a way to finance military spending.

David Lammy, the UK’s Foreign Secretary, recently warned that cuts to the aid budget, following the US’s plans to reduce its international aid, could be “a big strategic mistake” that would allow China to gain more influence globally. He also noted that reducing aid would hurt Britain’s global reputation. “It’s a dangerous precedent,” Lammy told The Guardian.

Former Foreign Office head Simon McDonald echoed this sentiment, cautioning that cutting aid could severely damage the UK’s international standing, particularly as Starmer’s government seeks to make savings across Whitehall in the upcoming spending review.

Peter Mandelson, the UK’s ambassador to the US, has been urging Starmer to establish a clear timeline for the increase in defence spending ahead of his visit to Washington this week, according to sources. “It’s important that we set out a clear plan for our national security interests,” Mandelson said.

Meanwhile, Tory leader Kemi Badenoch has called for a more ambitious approach, suggesting that a 2.5% increase in defence spending “is now no longer sufficient.” She added, “Rebuilding our military will require a focused, efficient force, equipped with the new kinds of weapons we’ve seen deployed in Ukraine. Military procurement also needs to be redesigned to deliver faster, better value for taxpayers. The message must be clear: we must do what it takes to protect Britain.”

Labour has commissioned two retired generals to conduct a Strategic Defence Review, with a planned report to be published in the spring. However, ahead of meeting with Trump, the prime minister has been pressured to devise a concrete plan sooner.

By Tamilla Hasanova