UK ups defence spending to 2.6% of GDP by 2027 as billions pledged

Chancellor delivered Spending Review

Sorin Dojan
clock • 4 min read

Chancellor Rachel Reeves has pledged to invest billions into Britain’s military, health and social security as part of the government's Spending Review.

Addressing the House of Commons today (11 June), Reeves said defence spending is now set to rise to 2.6% of GDP by 2027, which will be funded by a cut in the overseas aid budget. The boost in defence spending will provide the Ministry of Defence with a £11bn increase in military spending and a "£600m uplift for our security and intelligence agencies". The Labour government's Spending Review comes as Prime Minister Keir Starmer has already embarked on bolstering the country's defence capabilities by promising in February to ramp up military spending to 2.5% of the UK GDP by 2027 and 3%...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Chancellor Khalaf has a plan to make our economy boom

Chancellor Khalaf has a plan to make our economy boom

'So, Sir Keir, if you're reading, I do genuinely hope Rachel is doing okay. And my number's still the same. So, you know, call me'

Laith Khalaf
clock 25 July 2025 • 5 min read
UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

Speaking at IA annual conference

Sorin Dojan
clock 26 June 2025 • 2 min read
Trust in ONS data 'very low' as financial services shifts to alternative sources

Trust in ONS data 'very low' as financial services shifts to alternative sources

Follows latest inflation blunder

Sorin Dojan
clock 24 June 2025 • 4 min read