Prime Minister Keir Starmer said on Tuesday he would increase defence spending to 2.5% of GDP every year by 2027, rising to 3% after 2029, a clear signal to U.S. President Donald Trump that Britain will step up its efforts to boost Europe's security.

Sir Keir Starmer has announced a major boost to defence spending as he cut foreign aid. The Prime Minister said the Government would hit its target of 2.5% of national income on defence spending by 2027. But he said the UK's overseas aid budget would be reduced from 0.5% of gross national income to 0.3% in 2027 to fund the policy.

Keir Starmer has announced the UK will aim to spend 2.5% of GDP on defence every year from 2027 and 3% in the next parliament. The Prime Minister pledged to hit the figure ahead of last year’s election, but has previously declined to place a firm timescale on it before the Strategic Defence Review is published later this year.