Defence industry warns Starmer spending boost is not enough for ‘wartime'

Telegraph

26-02-2025

Defence industry bosses have warned the Prime Minister that his spending boost is not enough for 'wartime'.
Sir Keir Starmer told Parliament on Wednesday that the Ministry of Defence's budget would rise from 2.3 per cent to 2.5 per cent of gross domestic product (GDP) by 2027, speeding up existing plans to increase defence spending.
Kevin Craven, chief executive of ADS Group, the defence trade association, welcomed the pledge but warned that it stopped short of meeting levels required for 'wartime' production.
It comes amid warnings war in Europe could break out in the next few years, fuelled by Russia's invasion of Ukraine and fears that Chinese military posturing against Taiwan could bubble over into a full-blown invasion.
'At a peacetime rate'
Explaining that Western countries' military stockpiles had largely been sent to Ukraine over the past two years, Mr Craven said: 'The rate at which we're replenishing those stockpiles has been at a peacetime rate. So I would expect that rate to go up.
'Not to a wartime rate, because we're not at war. But, again, there's more certainty now, and therefore those orders to rebuild those stockpiles will start happening at a faster rate.'
He said: 'It will not bring an instantaneous surge in capability and capacity,' referring to the £6 billion spending increase.
'We're in a pre-war phase where the threat levels are higher and people can conceive of a conflict in the next three to five years,' Mr Craven continued, adding: 'You've got to open the taps a little bit to be able to plan and deliver a surge when it's necessary.'
Britain spent £53.9 billion on defence last year, according to the House of Commons Library. This year that will rise to £56.9 billion.
Other defence sources, speaking on condition of anonymity, suggested the industry was waiting for the Government's promised strategic defence review (SDR) – expected to be published before June – before expanding its ability to build tanks, ships and missiles.
'It's a welcome announcement but we're waiting for the SDR,' said one insider.
Another said the spending increase lacked the detail necessary for companies to invest in renewed arms production, saying: 'If you decide you want A, B and C, [only] then can you set up extra production lines.'
Mr Craven's comments were echoed by Professor Trevor Taylor, of the Rusi defence think tank, who said the industry would greet Sir Keir's spending pledge with 'relief' but warned that further rises would be needed.
'We have to make sure that spending generates capability that deters Russia. We don't want to be thinking ahead to a war: we want to be thinking ahead to deterring a war,' said Prof Taylor.
He added: 'We are getting towards the amount that we might need for deterrence, but probably we're not there yet at 2.5 per cent or even 3.'
Promises of increased defence spending will be welcomed by arms company bosses. Charles Woodburn, chief executive of BAE Systems, is expected to attend an event in Washington with the Prime Minister on Wednesday night as the latter prepares to meet Donald Trump.
American foreign policy under Mr Trump has provoked alarm in European capitals over recent weeks, with his warm embrace of Russia forcing members of the Nato alliance – including Britain – to re-assess their defence spending priorities.
British defence spending peaked at 11 per cent of GDP in 1953, falling to an all-time low of 1.9 per cent in 2018. Today it has risen to 2.26 per cent, with the Government saying it will hit 3 per cent by 2034.
Nato has a non-binding target for each of its members to spend 2 per cent of GDP on defence.