Finance
Britain needs to step up defence spending faster, PM Starmer says
Published by Global Banking & Finance Review®
Posted on February 16, 2026
3 min readLast updated: February 16, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 16, 2026
3 min readLast updated: February 16, 2026
The UK government is considering accelerating its 3% GDP defence spending target due to rising costs, with current spending at 2.3% of GDP.
LONDON, Feb 16 (Reuters) - Britain should step up and accelerate its defence spending, Prime Minister Keir Starmer said on Monday, following a report that the government was considering bringing forward its target to spend 3% of economic output on defence.
Britain, which has warned of the risks posed by Russia, said in February 2025 that it would lift annual defence spending to 2.5% of GDP by 2027 and aim for 3% in the next parliament, which is expected to begin after an election due in 2029.
The BBC reported that the government was now exploring ways to reach the 3% target by 2029. It said no decision had been taken but the government recognised current plans would not cover rising defence costs.
Asked whether he would bring the target forward to 2029, Starmer echoed comments he made at the Munich Security Conference, where he said Europe had united to support Ukraine with the supply of weapons and munitions and to strengthen military readiness.
"We need to step up. That means on defence spending, we need to go faster," Starmer told reporters on Monday. "We've obviously made commitments already in relation to that, but it goes beyond just how much you spend."
Latest NATO estimates show that Britain spent 2.3% of GDP on defence in 2024, above the alliance's 2% guideline. But like other European countries, it has faced U.S. pressure to spend more to protect the continent.
Struggling with high debt and spending commitments, the government last year cut its international aid budget in order to fund the hike in defence spending to 2.5% of GDP but is yet to publish an investment plan with spending priorities, something that has frustrated the defence industry.
Britain's budget watchdog, the Office for Budget Responsibility, said last year that raising defence spending to 3% of GDP would cost an additional 17.3 billion pounds a year ($24 billion) in 2029-30.
Finance minister Rachel Reeves has struggled to stay on track with her plans to repair the public finances. The BBC said the finance ministry was believed to be cautious about the new defence spending proposals.
A government spokesperson declined to comment on any revised plans, saying that Britain was "delivering the largest sustained increase in defence spending since the Cold War."
($1 = 0.7332 pounds)
(Reporting by Kate Holton and Sam Tabahriti, additional reporting by Catarina Demony, writing by Alistair Smout; Editing by William Schomberg and Ros Russell)
Gross Domestic Product (GDP) is the total value of all goods and services produced in a country over a specific period, typically a year. It is a key indicator of a country's economic performance.
Financial implications are the potential economic effects or consequences that a decision or policy may have on a budget, revenue, or expenditure.
The UK economy encompasses all economic activities within the United Kingdom, including production, consumption, and trade, and is influenced by various domestic and international factors.
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