Target of 3% of GDP on defence spending will not be met until next decade, says Govt

The target of 3% of GDP on defence spending will not be met until after 2030, the Chief Secretary of the Treasury has said.

Darren Jones said the Government is working to grow the economy to ensure that more funds can be invested into the Armed Forces.

It comes after Chancellor of the Exchequer Rachel Reeves announced that 2.6% of GDP will be spent on defence in the spending review.

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Mr Jones said: "Our commitment is to increase defence spending to 2.6% of GDP by 2027 – that's been met and is fully funded in the spending review announced by the Chancellor this week.

"The next step of our policy is to get to 3% of GDP, which we will do in the next parliament, and that will be considered in the next spending review in 2027.

"The spending review we announced this week in Parliament takes spending to 2028-29 and 29-30 for capital spending.

"When we get to the next spending review in 2027, that's when we will set out the budgets for 2030-2031 onwards, and that's when our commitment of 3% of GDP on defence spending comes into effect.

"So, the decision will be taken in 2027 about when we get to 3% of GDP on defence spending."

The Secretary of State was speaking during a visit to the Leonardo factory in Edinburgh, where £204.6m is being invested to develop the new radar for the Eurofighter Typhoon.

The ECRS Mk2 will allow the aircraft to simultaneously detect, identify, and track multiple targets in the air and on the ground.

The system is being developed and manufactured in the Scottish capital as well as Luton and will be integrated in Lancashire.

Plans to create a UK-wide "defence industry powerhouse" were announced during the spending review in the Commons earlier this week.

A spokesperson from Leonardo said: "With modern conflict demonstrating the importance of electronic warfare to combat operations, we are proud that the UK's onshore combat air industry is the first in Europe to offer a radar with embedded wideband Suppression of Enemy Air Defence electronic warfare capabilities through a multi-functional array.

"Development is running several years ahead of other international efforts, and we expect to have the radar in service with the UK RAF before the end of the decade."