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Sir Keir Starmer said the UK is set to increase spending on defence, security and resilience to 5% of GDP by 2035 to meet an “era of radical uncertainty” – but without promising any additional cash.

The move – part of a new spending pledge by the NATO alliance – was panned as deceptive “smoke and mirrors” by critics, who pointed to the very real risk of escalating conflict between Iran, the US and Israel, as well as Russia’s full-scale war in Ukraine.

Volodymyr Zelenskyy told Sky News the timeline for the increase was “very slow” and warned Russia could attack a NATO country within five years.

“In my view, this is slow because we believe that starting from 2030, Putin can have significantly greater capabilities,” he told chief presenter Mark Austin.

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‘Russia could attack a NATO country’

The prime minister, Donald Trump and the other leaders of NATO’s 32 member states are expected to approve the investment goal when they meet at a summit in The Hague, which opens later today.

It replaces a previous target to spend 2% of GDP purely on defence.

The announcement will be celebrated as a win for the US president, who has been demanding his allies spend more on their own defences instead of relying on American firepower.

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Overnight, he claimed to have secured another success, declaring that Iran and Israel have agreed to a ceasefire – just hours after Iran launched missiles against two American military bases in retaliation to a US decision to attack three Iranian nuclear sites over the weekend.

Perhaps it will mean he will switch attention back to achieving a goal to end Russia’s war in Ukraine, which will be another key focus of the gathering in the Dutch capital.

NATO planners have crunched the summit down to a short main session tomorrow, with a final communique much briefer than usual – all steps designed to reduce the chance of the US president leaving early.

He is already scheduled to arrive late and last this evening, provided he turns up.

There is huge nervousness about Mr Trump’s commitment to an alliance that has been the bedrock of European security since it was founded more than 75 years ago.

He is not a fan though, and has previously accused Europe and Canada of an overreliance on American firepower for their own security, calling for them to do more to defend themselves.

British Prime Minister Keir Starmer and U.S. President Donald Trump shake hands during a joint press conference in the East Room at the White House, February 27, 2025 in Washington, D.C., U.S. Carl Court/Pool via REUTERS
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Trump is expected to join Starmer and fellow leader NATO leaders at The Hague. Pic: Reuters

This pressure has arguably been a bigger motivator in prompting certain allies to agree to spend more on their militaries than the threat they say is posed by Russia, Iran, China and North Korea.

Spain’s position could create friction this week. The Spanish prime minister, while agreeing to the new investment goal, has said his country is not obliged to meet it.

The UK was also slow to say yes – a stance that was at odds with a defence review endorsed by Sir Keir that was centred around a “NATO-first” policy.

As well as agreeing to the defence and security investment goal, the British government is also publishing a new national security strategy on Tuesday that will highlight the importance of a wider definition of what constitutes security, including energy, food and borders.

There will also be a focus on a whole-of-society approach to resilience in an echo of the UK’s Cold War past.

A view shows the venue of the upcoming NATO summit, in The Hague, Netherlands June 23, 2025. REUTERS/Christian Hartmann
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Preparations for the NATO summit at The Hague. Pic: Reuters

It described the commitment to invest in defence, security and national resilience as an aligning of “national security objectives and plans for economic growth in a way not seen since 1945”.

Sir Keir said: “We must navigate this era of radical uncertainty with agility, speed and a clear-eyed sense of the national interest to deliver security for working people and keep them safe.

“That’s why I have made the commitment to spend 5% of GDP on national security. This is an opportunity to deepen our commitment to NATO and drive greater investment in the nation’s wider security and resilience.”

The funding will be split, with 3.5% of GDP going on core defence and 1.5% on homeland security and national resilience – a new and so far less clearly defined criteria.

Progress on investment will be reviewed in 2029.

Ukrainian President Volodymyr Zelenskiy shakes hands with British Prime Minister Keir Starmer at 10 Downing Street, in London, Britain June
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Starmer today met with Zelenskyy at Downing Street. Pic: Reuters

The defence goal is higher than the government’s current ambition to lift defence expenditure to 3% of GDP by 2034, from 2.3% currently.

The only solid commitment is to spend 2.6% on defence by 2027 – a figure that has been boosted by the addition of the whole of the budget for the intelligence agencies.

This level of intelligence spending had not previously been included and has drawn criticism from defence experts because it is not the same as tanks, artillery and troops.

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The government, in its statement, is now focusing on an even higher-sounding number, claiming that it will hit 4.1% of the new NATO target by 2027.

However, this is merely based on adding the new 1.5% spending goal for “resilience and security” to the already stated 2.6% defence spending pledge.

A Downing Street spokesperson was unable immediately to say how much of GDP is currently spent on whatever is included in the new resilience category.

It could include pre-announced investment in civil nuclear energy as well as infrastructure projects such as roads and railways.

For the UK, 1.5% of GDP is about £40bn – a significant chunk of national income.

Sir Ben Wallace, a former Conservative defence secretary, accused the government of “spin” over its spending pledge because it does not include any new money anytime soon.

“The threat to our country is real not spin,” he told Sky News.

“This government thinks it can use smoke and mirrors to deceive the public and Donald Trump. This is an insult to our troops who will see no significant new money. It fools no one.”

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October is ‘ETF month’ as 16 crypto funds await final decision

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October is ‘ETF month’ as 16 crypto funds await final decision

October is ‘ETF month’ as 16 crypto funds await final decision

NovaDius Wealth Management president Nate Geraci said it will be an “enormous next few weeks for spot crypto ETFs” as the SEC is due to decide on 16 applications.

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New York’s pro-crypto mayor Eric Adams drops reelection bid

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New York’s pro-crypto mayor Eric Adams drops reelection bid

New York’s pro-crypto mayor Eric Adams drops reelection bid

New York City Mayor Eric Adams is officially out of the mayoral race, plunging the city’s pro-crypto push into limbo.

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Chancellor to make case for ‘contribution’ ahead of youth jobs guarantee

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Chancellor to make case for 'contribution' ahead of youth jobs guarantee

Rachel Reeves will stress the need for “hard work matched by fair reward” when she unveils plans for a “youth guarantee” to drive down unemployment.

The chancellor will make the case for a society founded on “contribution” in her speech at Labour‘s annual conference in Liverpool today.

She is expected to confirm plans for every young person who has received universal credit (UC) for 18 months without “earning or learning” to be guaranteed an offer of paid work.

Labour conference in Liverpool – follow live updates

Those who refuse to take up jobs without a “reasonable excuse” will face sanctions such as losing their benefits, it is understood.

The guarantee, which will be overseen by Work and Pensions Secretary Pat McFadden, forms part of a pledge of “nothing less than the abolition of long-term youth unemployment“.

Ms Reeves is expected to say: “I believe in a Britain founded on contribution – where we do our duty for each other, and where hard work is matched by fair reward.

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“I believe in a Britain based on opportunity – where ordinary kids can flourish, unhindered by their background.

“And I believe that Britain’s real wealth is found not only in the success of the fortunate few, but in the talents of all our people, in every part of our great country.”

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Trevor’s Takeaway at Labour Party Conference

It comes in the wake of concerns among some Labour members that the government needs to offer voters a clearer vision of its agenda.

Sir Keir Starmer has previously avoided using buzzwords to define his politics, but thinktank Labour Together published a paper last week in which it argued the concept of contribution should be put at the heart of policymaking.

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Ms Reeves is expected to add: “We won’t leave a generation of young people to languish without prospects – denied the dignity, the security and the ladders of opportunity that good work provides.

“Just as the last Labour government, with its new deal for young people, abolished long-term youth unemployment I can commit this government to nothing less than the abolition of long-term youth unemployment.

“We’ve done it before and we’ll do it again.”

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Sir Mel Stride, the shadow chancellor, accused Labour of “contradictions” within their policies.

He said: “Rachel Reeves says she wants to abolish youth unemployment – yet in her very first budget, she introduced a £25bn jobs tax that made it more expensive for businesses to hire, especially young people.

“That’s the contradiction at the heart of Labour’s plan: they talk about opportunity, but their policies kill jobs.

“Since Labour came to power, unemployment is up. Business confidence is down. And now Reeves is trying to fix a problem she created – while pointing the finger of blame, as she so often does, at everyone else.”

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