Starmer to promise 'defence dividend' from UK military spending

LONDON (Reuters) -British Prime Minister Keir Starmer is expected to promise on Thursday that his government will deliver a "defence dividend" for voters, framing an increase in military spending forced by a U.S. shift away from underwriting Europe's security as an economic opportunity.

Marking the 80th anniversary of Victory in Europe Day (VE Day), Starmer is expected to say that higher defence spending will strengthen national security and support communities across the country by creating more jobs.

Addressing policymakers, military figures, defence firms and academics at a defence conference, Starmer will also announce a 563 million pound ($751 million) contract for Rolls-Royce to maintain the Royal Air Force's Typhoon jets.

"Our task now is to seize the defence dividend – felt directly in the pockets of working people, rebuilding our industrial base and creating the jobs of the future," Starmer will say, according to advance extracts of his remarks.

"A national effort. A time for the state, business and society to join hands, in pursuit of the security of the nation and the prosperity of its people."

In February, Starmer pledged to raise defence spending to 2.5% of GDP – the highest since the Cold War – in response to U.S. President Donald Trump's shift away from acting as the main guarantor of security in a Europe threatened by Russia.

In his speech on Thursday, Starmer will also highlight the importance of international alliances such as NATO at a time when the so-called 'coalition of the willing' - composed of mainly European nations led by Britain and France - is working to achieve a ceasefire and peace in Ukraine.

($1 = 0.7492 pounds)

(Reporting by Sam Tabahriti, Editing by Rosalba O'Brien)