Defence spending in the UK will increase to 2.5% of GDP by 2027 while the foreign aid budget will be cut, Sir Keir Starmer has said ahead of a meeting with Donald Trump.
Spending would be raised from the current 2.3%, with £13.4bn more on defence each year after 2027, the prime announced in an unexpected statement in parliament.
Sir Keir said he wants defence spending to increase to 3% of GDP in the next parliament, but that would rely on Labour winning the next general election, set for 2029.
The number is much lower than the US president has demanded NATO members spend on defence, with Mr Trump saying they should all be spending 5% – an amount last seen during the Cold War.
Sir Keir also announced the government would cut back on foreign aid to fund the increase, reducing current spending from 0.5% of GDP to 0.3%.
Moments before the announcement, the Foreign Office said it was pausing some aid to Rwanda due to its role in the conflict in neighbouring Congo.
Image: British Army soldiers from the 12th Armoured Brigade Combat Team during NATO exercises in May last year. Pic: Reuters
Foreign secretary David Lammy just two weeks ago criticised Mr Trump’s decision to freeze USAID, saying development remains a “very important soft power tool” and is worried without it, he “would be very worried China and others step into that gap”.
Sir Keir said the reduction in foreign aid is “not a renouncement I’m happy to make”, as charities said the cuts would mean more people in the poorest parts of the world would die.
He reiterated the government’s commitment to NATO, which he described as the “bedrock of our security”, and criticised Russian President Vladimir Putin, saying “tyrants only respond to strength”.
Addressing his upcoming visit to the White House to meet Mr Trump, the prime minister said he wants the UK’s relationship with the US to go from “strength to strength”.
Our defence budget should hit £67.6bn by 2025/26 then another £13.4bn onto that – that takes you to just over £80bn.
My guess is it won’t be spent on the heavy metal, it won’t be lots more tanks, not lots more aircraft or ships.
A lot of it will go, I think, into personnel which are the key elements and the thing we’ve seen degraded and degraded.
So, a lot of the money, I think, will go into transformational warfare, into cyber, into computing, into quantum computing, into being able to create what’s called a kill chain and a kill net, whereby you can see a threat, deal with it immediately, understand what it is immediately, and bring in exactly the right weapon to do something about it.
Even the United States, which is the most sophisticated in the world, you know, is constantly chasing that sort of, Philosopher’s Stone, of the kill.
The Russians aren’t very good at it at all. The Chinese, we don’t know how good they are.
We’re not really certain. But we’ve got to get much, much better at doing that.
So, I suspect a lot of this money will go on things that you won’t see immediately.
But I’m pretty sure also that this sort of money is fundamental to the sort of transformations which I suspect the defence review is going to talk about.
Conservative leader Kemi Badenoch welcomed the defence spending increase and said she had written to him over the weekend to suggest how he could redirect money from the overseas development budget.
“This is absolutely right,” she told the Commons.
“And I look forward to him taking up my other suggestion of looking at what we can do on welfare.”
She urged him to not increase taxes further or to borrow more to fund the rise, but to ensure the economy grows to support it.
Former Conservative defence secretary Ben Wallace said an extra 0.2% was “a staggering desertion of leadership”.
“Tone deaf to dangers of the world and demands of the United States,” he wrote on X.
“Such a weak commitment to our security and nation puts us all at risk.”
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‘Is US a threat to UK interests?’ Sky asks Badenoch
Labour MP Sarah Champion, chair of the international development committee, said cutting the foreign aid budget is “deeply shortsighted and doesn’t make anyone safer”.
“The deep irony is that development money can prevent wars and is used to patch up the consequences of them, cutting this support is counterproductive and I urge the government to rethink,” she wrote on X.
Charities condemned the cut, with ActionAid saying cutting the aid budget to fund the military “only adds insult to injury” and “flies in the face of UN charters”, adding it was a “political choice with devastating consequences”.
Christine Allen, CEO of CAFOD (Catholic Agency for Overseas Development), said the cut means “in some of the most vulnerable places on earth, more people will die and many more will lose their livelihoods”.
She said the cut, coming just after the US froze its aid programme, “is another lifeline being pulled away from those in desperate need”.
Labour promised in their manifesto to increase defence spending to 2.5% of GDP from the current 2.3%, however, ministers had previously refused to set out a timeline.
They had insisted a “path” to get to 2.5% would be set out after a defence spending review is published this spring.
Sir Keir Starmer has announced the UK has officially recognised Palestine as a state.
“Today, to revive the hope of peace for the Palestinians and Israelis, and a two state solution, the United Kingdom formally recognises the State of Palestine,” the prime minister said on X, alongside a longer video statement.
“In the face of the growing horror in the Middle East, we are acting to keep alive the possibility of peace and a two-state solution.
“That means a safe and secure Israel alongside a viable Palestinian state. At the moment, we have neither.”
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Canada and Australia also officially recognised Palestinian statehood on Sunday, ahead of a conference of the UN General Assembly in New York this week.
It is a significant moment in the history of Britain’s involvement in the region, and comes as the death toll from the Israeli war on Gaza continues to rise and conditions for the people trapped become even more desperate.
Image: An updated map of the region the Foreign, Commonwealth & Development Office website
In recognising Palestine as a state, the UK does so based on 1967 borders to be finalised as part of future negotiations. It would be led by a “reformed Palestinian Authority”.
The UK also acknowledges “all legal rights and obligations of statehood” for Palestine.
An updated map on the UK’s Foreign, Commonwealth & Development Office website now has the West Bank and Gaza labelled as ‘Palestine’ rather than the ‘Occupied Palestinian Territories’. This change has been rolled out across the website.
Image: Protesters in Tel Aviv calling for the release of hostages. Pic: AP
Sir Keir calls on Hamas to release the hostages
The prime minister repeated his calls for the the Israeli hostages – held in captivity since the brutal attacks on Israel on 7 October, 2023 – to be released by Hamas.
“I have met British families of the hostages. I see the torture that they endure each and every day. Pain that strikes deep in people’s hearts across Israel and here in the United Kingdom.
“The hostages must be released immediately and we will keep fighting to bring them home.”
Sir Keir was also clear to emphasise that recognition of Palestine was “not a reward for Hamas”, saying that the terror group “can have no future, no role in government, no role in security” in a future state.
“I have directed work to sanction other Hamas figures in the coming weeks,” he added.
Image: Huge amounts of Gaza have been razed to the ground. Pic: Reuters
Starmer calls on Israel to end Gaza offensives
Sir Keir also repeated his criticism of Israel, which for nearly two years has waged a brutal war on the densely-populated Gaza Strip.
“The Israeli government’s relentless and increasing bombardment of Gaza, the offensive of recent weeks, the starvation and devastation are utterly intolerable.”
The death toll in Gaza since the IDF launched its offensive following the 7 October attacks has now risen above 65,000 people, according to Hamas-run health authorities.
“This death and destruction horrifies all of us. It must end,” he said.
Image: A pro-Palestinian march in London earlier this year. Pic: PA
British people ‘desperately want to see’ peace
Sir Keir also said: “Ordinary people, Israeli and Palestinian, deserve to live in peace. To try to rebuild their lives free from violence and suffering.
“That’s what the British people desperately want to see.”
But he warned that the possibility of a Palestinian state was in danger of vanishing forever.
“With the actions of Hamas, the Israeli government escalating the conflict, and settlement building being accelerated in the West Bank, the hope of a two-state solution is fading, but we cannot let that light go out.
“That is why we are building consensus with leaders in the region and beyond, around our framework for peace.”
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What changed in UK’s Gaza policy?
Sir Keir said this is a “practical plan” to bring people together behind a “common vision” that moves from a ceasefire in Gaza to negotiations on a two-state solution.
Today, Sir Keir Starmer will deliver on his pledge to recognise a Palestinian state – after setting out a series of conditions in July which there was little prospect Israel could meet, including agreeing a ceasefire with Hamas.
The prime minister will say it recognises the “inalienable right” of the Palestinian people and what he feels is a moral responsibility to keep a two-state solution alive, amid the devastation of the war and concern about settlement expansion in the West Bank.
This will be formally put forward by the British government at a conference of the UN General Assembly in New York this week, after a diplomatic push led by Emmanuel Macron. Canada and Australia are also expected to recognise it, although may call for Hamas to disarm.
But Labour has always said it’s a move they would make as part of a peace process, which looks further away than ever.
What does it mean?
The move has been heavily criticised and leaves a number of questions not only about what it will achieve – but about whether it will have the opposite effect on the conflict.
David Lammy as foreign secretary conceded when the pledge was announced that “it will not change the position on the ground” which can only come through negotiations.
After all, 147 of the 193 member states of the United Nations recognise it already. Palestine has permanent observer status at the UN – speaking rights, but not voting rights – where it’s represented by the Palestinian Authority. Any move to full status would have to be agreed by the Security Council where the US has a veto.
Sir Keir has made clear he doesn’t accept Hamas – which he calls a “brutal terrorist organisation” – as a government in Gaza. The borders of such a state, wrangled over for decades during multiple rounds of negotiations between Israel and the Palestinians, are also not agreed.
Recognition is opposed by the Trump administration, as the US president made clear in London last week. US secretary of state Marco Rubio has said it would “embolden Hamas” and be symbolic only.
In Britain there is cynicism too. Kemi Badenoch, the Conservative leader, has accused the prime minister of a “desperate and insincere attempt to placate his backbenchers”. He heads to the party’s conference in Liverpool next week with a further slump in his approval ratings to -42%, around where Rishi Sunak’s was after his D-Day blunder.
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Could recognition of Palestine change the West Bank?
Other Labour MPs oppose the recognition move. The Labour Friends of Israel group has said: “It is important to recognise that Israel is not the only party to this conflict… Hamas could end this conflict tomorrow by releasing the hostages and laying down its arms.”
The move is also opposed by the families of the hostages in Gaza, of which 20 are believed to be alive – for not imposing their release as a condition on Hamas.
Ilay David, the brother of Evyatar David, who recently appeared emaciated in a Hamas video, said: “We want to meet with Starmer but he refuses to meet with us… Giving this recognition is like saying to Hamas: ‘It is OK you can keep starving the hostages, you can keep using them as human shields’. This kind of recognition gives Hamas power to be stubborn in negotiations. That is the last thing we need right now.”
Sir Ephraim Mirvis, the UK’s Chief Rabbi has said the “unconditional” recognition of the state “is not contingent upon a functioning or democratic Palestinian government, nor even upon the most basic commitment to a peaceful future”.
Image: Sir Keir Starmer welcomed Mahmoud Abbas, president of the Palestinian Authority, to 10 Downing Street earlier this month
What happens next?
Sir Keir met 89-year-old Mahmoud Abbas, the president of the Palestinian Authority, in London this month and they agreed Hamas should not be involved in the governance of Gaza.
Efforts to set up a transitional government have been discussed between the US and Gulf states. But Mike Huckabee, the US ambassador to Israel, said last week there was nothing “ready for signature”.
The UK government is expected to announce further sanctions on Hamas figures this week. But the Israeli government has already responded with fury to the prospect of recognition and it’s reported that retaliation could include further annexations in the West Bank.
The UK government sees this as an important diplomatic move with allies, when nothing else is moving the dial. But it can only be made once, and even supporters in government acknowledge that on the ground in Gaza it won’t immediately change very much.
Image: One of three Russian MiG-31 fighter jets in images shared by Sweden’s armed forces. Pic: Swedish Armed Forces
The three incursions into NATO airspace fuelled concerns about the potential expansion of Russia‘s three-year war in Ukraine and have been seen as an attempt by Moscow to test the military alliance’s response.
The incident over Poland prompted its prime minister, Donald Tusk, to warn that his country was the closest to “open conflict” it had been since the Second World War, while the UK announced it would provide Warsaw with extra air cover.
Two RAF Typhoons, supported by an RAF Voyager air-to-air refuelling plane, took off from RAF Coningsby, in Lincolnshire, on Friday night to defend Poland’s skies before returning safely early on Saturday morning.
Image: A Gerbera drone landed in a field in the Olesno region of Poland
Defence Secretary John Healey said the mission sends a clear signal that “NATO airspace will be defended”.
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“I’m proud of the outstanding British pilots and air crew who took part in this successful operation to defend our allies from reckless Russian aggression.”
He said the mission was “especially poignant” coming as the UK marks the 85th anniversary of the Battle of Britain – when Polish pilots came to the aid of the UK – this weekend.
The head of the RAF, Air Chief Marshal Harv Smyth, said: “This sortie marks the RAF’s first operational mission on Eastern Sentry, reinforcing the UK’s steadfast commitment to NATO and its allies.
“We remain agile, integrated, and ready to project airpower at range.”