Starmer expected to approve $24 billion increase in UK defence spending, The Times reports
UK Defence Spending Plans and Political Implications
Overview of the Proposed Defence Spending Increase
May 15 (Reuters) - British Prime Minister Keir Starmer is expected to approve an increase of 18 billion pounds ($24 billion) in defence spending as he faces a battle for political survival, The Times reported on Friday.
Government’s Defence Spending Plan
The government is still finalising a defence spending plan and will publish it as soon as possible, a spokesperson told Reuters.
The British government's defence investment plan will aim to deliver equipment and technology to frontline forces quickly while supporting economic growth, the spokesperson said.
Political Context and Leadership Challenges
Starmer’s Struggle for Power
Starmer is struggling to hold on to power after a tumultuous week when one of his main rivals in government quit, accusing him of a lack of vision, and others positioned themselves for potential challenges to his leadership.
Labour Party Dynamics
Britain's governing Labour Party on Friday agreed to let Greater Manchester Mayor Andy Burnham seek a return to parliament, a step towards a possible challenge to Starmer's leadership.
Timing of the Spending Boost
Starmer is expected to approve the spending boost as soon as next week, The Times said, bringing an end to months of delays and internal rows.
Funding and Economic Considerations
Uncertainty Over Funding Sources
It is unclear how the increase in spending will be funded. However, an unnamed source told The Times it would be "fully affordable."
Finance Minister’s Position
Last month, finance minister Rachel Reeves said she did not favour tax hikes or higher borrowing to fund increases in defence spending, which has become a priority after Russia's full-scale invasion of Ukraine and the war in Iran.
Long-Term Defence Spending Goals
Starmer has pledged the largest sustained increase in defence spending since the Cold War, aiming to lift it to 3% of national output in the next parliament, a move that Britain's budget watchdog has estimated would require an additional 17.3 billion pounds a year by 2029–30.
If the government ruled out raising taxes or borrowing more, it would probably have to look at cutting other areas of public spending to fund a bigger defence budget.
Additional Information
($1 = 0.7510 pounds)
(Reporting by Natalia Bueno Rebolledo, Mrinmay Dey in Mexico City and Suban Abdulla in London; Editing by Mark Porter and Rosalba O'Brien)
