Keir Starmer has announced that Britain will fight for peace in Europe with a generational increase in defence spending paid for by slashing the foreign aid budget.
The move, just two days before the prime minister is due to meet Donald Trump, raised immediate concerns that he was pandering to the US president, and fury from aid groups that say it could cost lives in countries that rely on UK support.
Britain will fight for peace in Europe
In a surprise announcement, Starmer announced the biggest increase in defence spending since the end of the cold war, with the budget rising to 2.5% of GDP by 2027 – three years earlier than planned – and an ambition to reach 3%.
Cabinet ministers are among those who voiced concern over plans to cut aid spending by 40%, after Trump’s own drastic cuts to the US aid budget. Several warned in a cabinet meeting of the risk of unintended consequences.
David Lammy, the foreign secretary, said earlier this month that the US plan could be a “big strategic mistake” that would allow China to step into the gap and extend its global influence.
Sometimes these politicians make you think, how audicaious can you be, that you rest your entire negotiation on words and empty threats.
The government said it hoped savings could be made from the third of the development budget that goes on hotel accommodation for asylum seekers.
Starmer also said the decision to cut aid had been an “extremely difficult and painful” one, but said it was necessary to increase defence spending because “a generational challenge requires a generational response” as Britain will fight for peace in Europe, implying it would do it without the US.
Decision to cut aid
Writing in the Guardian, Lammy said the decision to cut aid was an “extremely difficult one” but added: “We are a government of pragmatists not ideologues – and we have had to balance the compassion of our internationalism with the necessity of our national security.”
At a Downing Street press conference, he told reporters: “I’ve taken a difficult choice today because I believe in overseas development, and I know the impact of the decision that I’ve had to take today, and I do not take it lightly.
“It is not a decision that I, as a British Labour prime minister, would have wanted to take, but a decision that I must make in order to secure the security and defence of our country.”
European leaders have been shocked by Trump’s hostile approach towards Ukraine in recent weeks, including falsely accusing Volodymyr Zelenskyy of being a dictator and aligning the US with Russia despite its brutal invasion.
The UK prime minister, who is travelling to Washington for what is likely to be a diplomatically fraught visit to the White House on Thursday, denied that he had been “bounced into” increasing defence spending by Trump.
“I think in our heart of hearts, we’ve all known that this decision has been coming for three years since the beginning of the conflict in Ukraine. The last few weeks have accelerated my thinking on when we needed to make this announcement,” he said.
Trump has repeatedly put pressure on European countries to take more responsibility for their own defence, after years of relying on the US. Pete Hegseth, the US defence secretary, described the increase as “a strong step from an enduring partner” after a call with his British counterpart.
The defence spending is the equivalent of £6bn a year extra from 2027, rather than the £13.4bn claimed by Starmer, as the higher figure is dependent on the defence budget being frozen until that point, creating an artificially low baseline.
Downing Street insiders believe that decision to cut aid could be popular with the type of voters inclined to back Reform UK that Labour needs to retain. However, they acknowledge there is a risk they could lose support over the policy to the Liberal Democrats and Green party.
The prime minister discussed the move with his cabinet before announcing it, officials said, and secured “agreement” before going ahead – though Downing Street would not say what the tone of the conversation had been.
However, cabinet sources said that while there had been unity over increasing defence spending, several ministers had warned about the “unintended consequences” of the decision on Britain’s international reputation and influence.
One source described the move as a “necessary evil”, while a second said: “It feels like a moment for the UK to really step up on defence but we’ve taken a risk internationally.
Underspending on climate finance
Underspending on climate finance by the previous Tory government has meant the pledge – of £11.6bn in the five years to 2025-26 – will be harder to meet, with analysis last year suggesting that £3.8bn would need to be spent, taking up a large slice of the official development assistance (ODA) budget.
David Miliband, a former Labour foreign secretary who now leads the International Rescue Committee, said: “The UK government’s decision to cut aid by £6bn in order to fund defence spending is a blow to Britain’s proud reputation as a global humanitarian and development leader.”
Sarah Champion, the Labour chair of the international development committee, said: “Aid and defence are linked, but they build upon each other to keep everyone safe. Cutting one to fund the other will have dire consequences for us all as it will make the world less stable.”
The Tory MP Andrew Mitchell, a former international development secretary, criticised Starmer’s plan as “shortsighted and damaging”.
He said: “Balancing the books on the backs of the poorest people in the world isn’t just wrong, it also makes the UK weaker and less secure. In taking this decision, the government risks cutting off its nose to spite its face.
“While there is an unanswerable case for increasing defence spending, the evidence shows that doing this at the expense of international aid increases health and security risks to the UK in the long run.”
Romilly Greenhill, the chief executive of Bond, which represents British aid organisations, described the development cuts as “a shortsighted and appalling move” that would undermine the UK’s global commitments and credibility, but also weaken British national security.
Starmer’s visit to the White House, the second time he has met Trump, will take place days after the third anniversary of Russia’s full-scale invasion of Ukraine, amid tensions after a UN vote and during a turbulent period in transatlantic relations.
It will be the biggest test yet of his diplomatic and negotiating skills, as he tries to balance the UK’s security and economic interests with retaining good relations with the unpredictable US president.
As part of a continued Europe-wide push on security, defence ministers from across the continent are expected to meet in London on Sunday for a hastily arranged summit. Donald Tusk, the Polish prime minister, hinted at the plan earlier on Tuesday, which was then confirmed by UK sources.
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