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

Bank of England holds rates at 3.75% as it waits for 'cloudy' data to clear

Bank of England holds rates at 3.75% as it waits for 'cloudy' data to clear

'Wait and see approach'

Michael Nelson
clock 05 February 2026 • 2 min read
Kevin Warsh's surprise pick for Fed chair forces investors to rethink 'dollar debasement'

Kevin Warsh's surprise pick for Fed chair forces investors to rethink 'dollar debasement'

'Catalyst' for rapid repricing

Alex Sebastian
clock 04 February 2026 • 4 min read
Partner Insight: A new VCT landscape - what advisers need to know after the Budget

Partner Insight: A new VCT landscape - what advisers need to know after the Budget

For professional advisers and paraplanners only. Not to be relied upon by retail clients.

Toyin Oyeneyin, Tax Product Specialist, Octopus Investments
clock 19 January 2026 • 5 min read