Published by Global Banking & Finance Review®
Posted on February 16, 2025
2 min readLast updated: January 26, 2026
Add as preferred source on Google
UK PM Keir Starmer plans to increase defence spending to 2.5% of GDP, responding to US demands for greater European security contributions.
(Reuters) - British Prime Minister Keir Starmer is preparing to overrule his finance minister Rachel Reeves and order more defence spending, after the United States demanded that Europe pays more for its security, the Sunday Times reported.
Citing sources, the newspaper said Starmer is due to fly to Washington next week to speak with U.S. President Donald Trump, with an announcement due as early as Monday.
Starmer's Labour government has committed to raising defence spending to 2.5% of economic output from around 2.3% now but has not yet set out a timetable.
Reeves, who is preparing a major spending review, already faces a challenge to deliver promises to improve public services and raise economic growth without running afoul of her fiscal rules - which look at risk of being breached.
"In the end, it's the prime minister's decision on national security. This one does sit with the PM," the Sunday Times quoted a Starmer ally as saying.
"We know we have to set out when we're getting to 2.5%. The defence and security review will still do what we needed to do."
The prime minister's office was not immediately available for comment.
Starmer on Saturday said his country would work to ensure the U.S. and Europe remained together and that they should not allow divisions to distract them from "external enemies".
His comments came after Trump's Ukraine envoy told the Munich Security Conference that Europe would not have a seat at the table for Ukraine peace talks.
Asked on Sunday if Reeves would be happy to raise defence spending, business and trade secretary Jonathan Reynolds told Sky News: "(She) knows more than most people the pressures on public services across the board, but defence has to be the cornerstone of our national prosperity as well as our security."
(Reporting by Andy Bruce; Editing by Angus MacSwan)
The article discusses UK Prime Minister Keir Starmer's plan to increase defence spending in response to US demands for greater European security contributions.
The UK is responding to US demands for Europe to pay more for its security and plans to raise defence spending to 2.5% of GDP.
UK Prime Minister Keir Starmer and finance minister Rachel Reeves are involved, with Starmer potentially overruling Reeves.
Explore more articles in the Headlines category
