Starmer Cuts Aid Budget to Boost Defence Spending
Sir Keir Starmer Announces Plan to Raise Defence Spending to 2.5% of GDP by 2027
Prime Minister Sir Keir Starmer has unveiled a plan to increase the UK’s defence spending to 2.5% of national income by 2027, funded by cuts to the foreign aid budget. The move has been praised by the US government but has drawn sharp criticism from development charities, who call it a "betrayal."
On Wednesday, Sir Keir will face MPs in the House of Commons before traveling to the US, where he is set to meet President Donald Trump. Their discussions are expected to focus on Ukraine, as concerns grow across Europe that the US may negotiate a deal with Russia that could leave the continent vulnerable.
Trump has long urged NATO’s European members to increase their defence spending and is actively pursuing a rapid agreement to end the war in Ukraine, following discussions with Russian President Vladimir Putin. He has been critical of the previous US administration’s military support for Kyiv and wants Europe to take a greater role in ensuring Ukraine’s security.
In a related development, Ukrainian officials confirmed to the BBC that a deal has been reached allowing American firms access to the country’s valuable rare earth minerals. Trump indicated this agreement could lead to continued US military aid for Ukraine until a ceasefire is secured.
Aid Budget Slashed to Fund Military Expansion
As part of the new policy, the UK’s aid budget will be reduced from 0.5% to 0.3% of gross national income by 2027, redirecting funds to bolster defence. Sir Keir announced that this shift would provide an additional £13.4 billion annually for the military. Defence spending, currently at 2.3% of GDP, is expected to reach 2.6% when factoring in contributions from intelligence services.
US Defence Secretary Pete Hegseth welcomed the decision, calling it "a strong step from a key ally." Sir Keir also signaled the UK’s ambition to raise defence spending to 3% of GDP after the next general election, urging European partners to follow suit.
Speaking at a press conference, Sir Keir said the decision to accelerate defence spending was driven by "the grave threats we face" and described the global security situation as entering "a dangerous new era." He denied that Trump pressured him into the move but admitted that recent diplomatic shifts "accelerated my thinking."
"In our heart of hearts, we've known this decision has been coming since the start of the Ukraine conflict," he stated.
Despite these changes, Labour maintains its election pledge to restore development aid to 0.7% of gross national income "as soon as fiscal circumstances allow."
Backlash from Charities and Opposition Parties
Development charities reacted with dismay, with Save the Children condemning the aid cut as "a betrayal of the world's most vulnerable children and the UK’s national interest." Moazzam Malik, the charity’s chief executive, criticized the government’s decision, stating, "Slashing lifelines for families in crisis is indefensible."
Labour MP Sarah Champion, chair of the Commons International Development Committee, called for a reversal of the policy, arguing that reducing aid to fund defence was "a false economy that will only make the world less safe."
In response, Sir Keir acknowledged the difficulty of the decision but emphasized that conflict is "the biggest driver of migration and poverty." He argued that strengthening the armed forces was essential, as years of cuts had left them stretched thin.
Addressing Military Shortfalls
While the increase in funding will bolster the military, it will not fully resolve longstanding issues. The Ministry of Defence faces a projected £17 billion shortfall in its equipment budget over the next decade, according to the National Audit Office. Much of the additional funding is expected to go toward addressing shortages in munitions and upgrading underfunded programs.
Malcolm Chalmers of the Royal United Services Institute think tank suggested that the commitment to 3% of GDP could transform the UK’s military capabilities by ensuring long-term planning and technological innovation. However, Dr. Simon Anglim of King’s College London argued that 3% is "the bare minimum" needed to deter Russia and warned that an even higher commitment might be required if the US scales back its support for European defence.
Diplomatic Considerations and NATO Expectations
Previously, the UK government had planned to outline a gradual path to reaching 2.5% defence spending, but the urgency of international developments prompted an earlier decision. It remains unclear whether Trump will view the increase as sufficient, given his calls for NATO members to contribute closer to 5% of GDP toward defence. NATO's official guideline is for each member state to spend at least 2% of GDP, though its Secretary General, Mark Rutte, recently urged allies to aim "north of 3%."
Sir Keir’s visit to Washington follows a meeting between Trump and French President Emmanuel Macron earlier this week. The UK will also host European leaders this weekend to discuss future defence cooperation.
Political Reactions in the UK
Conservative leader Kemi Badenoch welcomed the increased defence spending and the reallocation of aid funds but raised concerns about whether the government’s broader economic strategy could sustain such commitments.
Liberal Democrat leader Sir Ed Davey supported the defence boost but urged alternative funding measures, such as seizing frozen Russian assets or increasing taxes on multinational tech companies.
Meanwhile, the SNP’s Westminster leader, Stephen Flynn, supported the increase in defence spending but rejected what he called "the populist playbook" of cutting aid to pay for it.
As tensions rise in Europe and uncertainty looms over NATO’s future strategy, Starmer’s shift in policy reflects a new reality in global security dynamics. His trip to Washington and upcoming meetings with European leaders will be crucial in shaping the UK’s role in the evolving international defence landscape.
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