UK to reduce foreign aid to boost defense budget – Starmer

The UK government has revealed intentions to reduce its foreign aid in order to boost overall defense spending to 2.6% of GDP by 2027. Read Full Article at RT.com

UK to reduce foreign aid to boost defense budget – Starmer
The reduction in foreign development assistance funding, from 0.5% of its Gross National Income to 0.3%, was announced by Prime Minister Sir Keir Starmer during a parliamentary session on Tuesday. Starmer explained that this cut is essential for increasing defense spending.

Starmer described the decision as necessitating “extremely difficult and painful choices,” emphasizing the weight of the aid reduction. “That is not an announcement I am happy to make,” he expressed to MPs, while pledging to “do everything we can” to “rebuild a capability on development.” He maintained that defense remains “the number one priority of this government.”

Despite the budget cut, Starmer reassured that the UK would continue to fulfill its humanitarian responsibilities in regions like Sudan, Ukraine, and Gaza.

Dr. Philip Goodwin, CEO of UNICEF UK, reacted strongly to the impending cuts, stating, “These cuts will mean millions of children not having access to critical health care, not having enough to eat, and missing out on their learning. At a time of increased global insecurity and instability, this decision will undoubtedly risk lives.”

Under Starmer’s Plan for Change, the UK intends to increase defense expenditures to 2.5% of its GDP by April 2027, three years ahead of the original timeline, as per a government statement. The Prime Minister also committed to raising spending to 3% of GDP in the next parliament, citing factors such as “global instability,” the ongoing conflict in Ukraine, “increasing threats from malign actors,” and climate change.

The definition of defense spending will also be broadened to include funding for security and intelligence agencies, thereby raising total expenditures to 2.6% of GDP, according to the statement.

As per NATO data, Britain’s defense expenditure was 2.3% of GDP in 2024, amounting to £53.9 billion in the 2023/24 financial year. Projections indicate that this spending could rise to £56.9 billion in 2024/25 and £59.8 billion in 2025/26, according to parliamentary data.

However, sources cited by the Guardian suggested that the additional 0.2% of GDP, equating to approximately £13.4 billion annually starting in 2027, may have limited impact on the UK's overall defense capabilities. Reportedly, this funding would be insufficient to adequately rebuild and transform the nation's military.

Aarav Patel contributed to this report for TROIB News