Media: Starmer pushes to accelerate UK defence spending

UK Prime Minister Keir Starmer is pressing the Treasury to speed up plans to increase defence spending, after military chiefs warned that faster action is needed to rebuild what they describe as overstretched armed forces.

Officials in the Prime Minister’s Office and the Ministry of Defence (MoD) believe spending beyond the current target of 2.6% of GDP by 2027 is required to plug a £28 billion shortfall and develop a more credible response to growing security threats, people familiar with the discussions told Bloomberg.

However, Chancellor of the Exchequer Rachel Reeves is resisting accelerating the timetable. On February 18, she said she would “continue to increase” defence spending after 2027, but any additional funding would be decided in her next spending review that year. Treasury officials argue that reaching 3% of GDP by 2029 — reportedly under consideration — would be highly challenging without tax increases, spending cuts or changes to fiscal rules.

The UK has faced mounting pressure to raise military spending amid calls from US President Donald Trump for European allies to shoulder more of their own defence burden, alongside continued security concerns over Russia. In June, Starmer pledged to raise security spending to 5% of GDP by 2035, including 3.5% for core defence, but ministers have yet to outline how the target will be achieved.

The MoD’s long-delayed defence investment plan, which will allocate the current funding uplift, is expected as soon as next month. The delay has created uncertainty for key defence contracts.

Chief of the Defence Staff Richard Knighton warned last month that Britain cannot afford its existing commitments, saying the situation requires “difficult trade-offs.” He told Parliament that options could include reducing financial contingencies, delaying programmes and scaling back ambitions.

Speaking at the Munich Security Conference, Starmer argued that hard power “is the currency of the age,” underscoring the need to rebuild Europe’s defences more quickly.

Defence Secretary John Healey said the government wants to be “creative about the way that we consider these things, whether that’s financing, industrial procurement or joint programs.” Reeves has explored options such as joint borrowing with European allies, multinational procurement and keeping certain stockpiling costs off the government balance sheet.

Healey praised the chancellor’s approach, saying: “I want to praise Rachel on this: she’s been ready to be creative about potential financial mechanisms that are multinational.” He added that “There’s really good, creative ideas around a defense, security and resilience bank.”

Canada has urged the UK to reconsider joining a proposed multinational defence financing initiative. Canadian Prime Minister Mark Carney raised the issue in a call with Starmer on February 17. Treasury officials say no decision has been made, and Healey noted that “there’s a lot of discussions, options and ideas still being discussed” but “nothing has been pinned down.”

By Sabina Mammadli