UK PM Increases Defense Expenditure Ahead Of Visits To Washington

British Prime Minister Keir Starmer/PHOTO via Instagram @keirstarmer

JAKARTA - Prime Minister Keir Starmer said he would increase annual defense spending to 2.5% of GDP by 2027 and target the 3% last seen in the Cold War.

This is a signal to US President Donald Trump that Britain can help improve European security.

Ahead of his departure to meet Trump in Washington, Starmer told parliament he proposed an increase in defense spending to offer more support to Europe as the US spearheaded peace negotiations with Russia over the war in Ukraine.

With the already stretched public spending in the UK, Starmer said the increase would be paid in full with a 40% cut in international aid.

According to him, this announcement is not pleasing but is needed to offer support to Ukraine and Europe in the "new era".

As Trump appears to be ignoring a more friendly US approach to Ukraine to Russia's war, ignoring much of Europe, Starmer and other European leaders have stepped up diplomatic efforts to demonstrate unity in supporting Kyiv.

"Starting today, I can announce that this government will start increasing its largest sustainable defense spending since the end of the Cold War," Starmer said.

"We still have to go further. I have long argued that all European allies must take action and do more for our own defense," he said.

Britain will set a target to spend 3% of gross domestic product in the next parliament, which will convene after the national elections scheduled for 2029.

The increase will cause the UK to spend 13.4 billion pounds ($17 billion) more on defense every year starting in 2027. The British defense ministry said it spent 53.9 billion pounds in the 2023/24 financial year.

To meet the increase in spending, the international aid budget will be cut from 0.5% gross national revenue to 0.3% by 2027, meaning the loan rate will not change, Starmer said.

Britain last cut its aid budget in November 2020, during an economic crisis caused by COVID, reducing its aid budget to 0.5% from GDP from 0.7% previously, a move criticized by several development groups for reducing the country's global influence.

"This is a short-term and dire step taken by the PM and the Ministry of Finance," said Romilly Greenhill, CEO of Bond, a network of organizations working in the field of international development and humanitarian aid.