Starmer's defence spending plans under pressure as Nato pushes for more
The Prime Minister has committed to spend 2.5% of gross domestic product on defence from April 2027, with a goal of increasing that to 3% over the next parliament – a timetable which could stretch to 2034.
But Nato secretary-general Mark Rutte is thought to be pushing for allies to commit to spending 3.5% on the military with a further 1.5% on defence-related measures as the alliance responds to Russian President Vladimir Putin's actions in Ukraine.
Leaders from the alliance will meet in The Hague later this month with the total 5% spending target by 2035 set to be on the table.
But Downing Street refused to be drawn on the possible increased spending commitment, which would put a further strain on the public finances into the middle of the next decade.
The Prime Minister's official spokesman said: 'I'm not going to get into the discussions that are ongoing, in the usual way, ahead of (the) Nato (summit).
'The UK is already the third-highest spender in Nato in cash terms behind the United States and Germany, we are one of 22 allies of the 32 in Nato that already exceed the 2% of GDP Nato target.
'But it isn't just about cash, it's about contributions to capability that each Nato ally brings.
'Whether it is our nuclear capability, whether it's our world-class carriers with fifth-generation combat aircraft, our armed forces who are some of the most advanced in the world, the UK has been a leading contributor to Nato and will remain one.'
Sir Keir and Defence Secretary John Healey have already come under pressure to spell out how the existing 3% goal could be met.
Mr Healey insisted he was '100% confident' that military funding would increase as he promised to prepare the armed forces for the future.
The Strategic Defence Review published on Monday recommended sweeping changes, including a greater focus on new technology including drones and artificial intelligence based on rising budgets.
The authors of the review have suggested reaching that 3% target is vital to delivering their recommendations while US President Donald Trump has led the charge for Nato allies to spend 5%.
Mr Healey denied he was gambling on economic growth to meet his target, telling BBC Breakfast: 'I'm 100% confident that we'll hit that 3%.
'The important thing for now is what we can do, and we can do now more than we've been able to do before, because of an extra £5 billion the Chancellor has put in to the defence budget this year and the 2.5% that we will deliver three years earlier than anyone expected.
'It means that a £60 billion budget this year will rise throughout this parliament and beyond.'
The Ministry of Defence announced a £5 billion investment in the 'kit of the future' following the publication of the review on Monday.
The funding includes £4 billion for drones and autonomous systems, and an extra £1 billion for lasers to protect British ships and soldiers.
A new era of threat requires a new era for defence.
The Strategic Defence Review marks a landmark shift in our deterrence and defence ⬇️ pic.twitter.com/EZtoHx6PGR
— Ministry of Defence 🇬🇧 (@DefenceHQ) June 2, 2025
Mr Healey said the investment would provide 'the most significant advance in UK defence technology in decades' and 'ensure our armed forces have the cutting-edge capabilities they need to meet the challenges of a rapidly changing world'.
Part of the investment will see the establishment of a new 'drone centre' to accelerate the deployment of the technology by all three branches of the armed forces.
The focus on drones comes as the technology has proved increasingly lethal on the battlefield in Ukraine, where it now kills more people than traditional artillery.
At a meeting of allied defence ministers in April, Mr Healey said the UK estimated drones were inflicting 70-80% of battlefield casualties, while on Sunday Ukraine launched a major attack on Russian airfields deep behind the front line using a fleet of small drones.
In addition to investment in drones and AI, the Government has announced an additional £1 billion for the development of 'directed energy weapons' (DEWs) during the current Parliament.
This includes the DragonFire laser scheduled to be fitted to the Royal Navy's Type 45 destroyers from 2027, with a similar system provided for the Army by the end of the decade.
DragonFire and other DEWs are intended to provide a lower-cost form of air defence against targets including drones, costing just £10 per shot compared with the thousands of pounds it costs to fire existing weapons.
Shadow defence secretary James Cartlidge said the Government should 'urgently commit to spending 3% this Parliament'.
'This commitment from Nato contrasts with Labour's total failure to set out a plan to spend 3% on defence,' he said.
'As a result, their defence review has completely unravelled. The submarines and ships it promises are nothing but a fantasy fleet based on fantasy funding.'
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