Armed Forces get £11bn boost as Reeves announces defence spending plans
Defence spending will rise to 2.6% of GDP by April 2027, the Chancellor has revealed as she announced the Government's spending review.
Rachel Reeves said the increase would see the defence budget increase by £11bn, which will be partly funded by cutting the overseas aid budget.
She also outlined investment in the defence industry, including the building of new attack submarines for the Royal Navy and the production of munitions for the military.
It comes a week after plans for military spending were outlined in the Strategic Defence Review in response to what Prime Minister Sir Keir Starmer called "a new era of threat".
Investment in growing the size and lethality of the Army, boosting the UK's air power and investment in military accommodation were also mentioned in the SDR.
Speaking in the Commons, Ms Reeves said: "As the Prime Minister said earlier this month, a new era in the threats that we face demands a new era for defence and security.
"That's why we took the decision to prioritise our defence spending by reducing overseas development aid so that defence spending will now rise to 2.6% of GDP by April 2027.
"That uplift provides funding for my right honourable friend the Defence Secretary, with a £11bn increase in defence spending and a £600m uplift for our security and intelligence agencies."
The Chancellor said growing and developing military supply chains would help create jobs in communities across the country.
She added: "That investment will deliver not only security but also renewal in Aldermarston and Lincoln, in Portsmouth and Filton, on the Clyde and in Rosyth.
"As we invest in our Armed Forces, our military technology and our supply chains, that also brings huge opportunities.
"£4.5bn of investment in munitions made in factories from Glasgow to Glascoed, Stevenage to Radway Green and over £6bn to upgrade our nuclear submarine production, supporting thousands of jobs across Barrow, Derby and Sheffield.
"We will make Britain a defence industrial superpower with the jobs, the skills, and the pride that come with it."
Shadow chancellor Mel Stride criticised the plans and pointed to a lack of commitment on when 3% of GDP being spent on defence would be reached.
He said: "We will always welcome any additional investment in our Armed Forces and capabilities.
"Though I note that nothing was said about when 3% will be achieved.
"All we heard was that in the intelligence service, spending was to be included in defence spending to flatter the numbers.
"We left the party opposite a fully funded plan which they dithered over for a year, but now what we get is the Chancellor's own black hole on defence spending, the lack of a timeline on when we will achieve the 3%.
"Instead, we get a £30bn bill for the Chagos surrender – money which should go to our brave Armed Forces rather than, as is being reported, funding lower taxation in Mauritius."
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