Defence spending and overseas aid

[Last updated 01/04/25]

As you will know, in February the Prime Minister announced the largest sustained increase in defence spending since the Cold War to meet the challenges of today’s volatile world. Defence spending will increase to 2.5% of GDP from April 2027, with an ambition to reach 3% in the next parliament.

This decision has been made because Putin’s aggression has not stopped at Ukraine’s border, with Russian spy ships in our waters, Russian planes entering our airspace, and Russian cyber-attacks against our NHS. As the Prime Minister has said, the defence and national security of our country must always be the top priority for the Government.

Increasing investment in defence spending required moving funds from elsewhere. In order to do this quickly, the PM decided to redirect overseas development funding to defence, resulting in the current level of 0.5% of gross national income being reduced to 0.3% in 2027.

Based on current estimates, we will still be spending around £9 billion on overseas development in 2027. With this funding, the Government remains focused on providing humanitarian support to war-torn regions, including Gaza, the Middle East, Sudan, and Ukraine. We will also continue to tackle the effects of climate change around the world, and support multilateral efforts to improve global health, including through vaccinations.

We will do everything we can to rebuild our overseas development capability when the economic and fiscal conditions allow – and investing in the defence sector today, which plays a crucial role in local and regional economies around the UK, will pay dividends in growing our economy to help us to get there sooner.