Britain’s foreign aid budget is taking a major hit, as Keir Starmer announces billions more for defence spending.
The prime minister told MPs that the government will reach its 2.5% GDP target for defence by 2027—three years earlier than expected. That means an extra £13.4 billion per year for the military, the biggest sustained increase since the Cold War.
This move comes as Donald Trump warns Europe that the US won’t always be there for military protection, and against the backdrop of the ongoing war in Ukraine.
Foreign Aid Cut to Pay for Defence Boost
To fund this massive increase, foreign aid spending will drop from 0.5% of GDP to 0.3%.
“That is not an announcement I am happy to make,” Starmer admitted. “I am proud of our record on overseas development.
“But at times like these, the defence and security of the British people must always come first.”
The PM also hinted at an even bigger increase to 3% of GDP after the next election—if economic conditions allow.
A Message of Strength
Starmer framed the decision as a necessary response to global instability.
“At moments like this in our past, Britain has stood up to be counted,” he told MPs. “It has come together and it has demonstrated strength. That is what the security of our country needs now, and it is what this government will deliver.”
The timing of the announcement is no accident—it lands just 48 hours before Starmer’s first face-to-face meeting with Trump in the White House.
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