Defence spending won’t reach 2.5% until after the election, ministers admit

Defence spending will not reach 2.5 per cent of GDP until after the general election, ministers have admitted.

Rishi Sunak and Jeremy Hunt have insisted that funds will reach that target “when economic conditions allow”, despite calls from Conservative MPs and defence experts to increase spending now to cope with growing global threats, including from Russia, China and Iran.

But Chief Secretary to the Treasury, Laura Trott, has revealed that “the path towards 2.5 per cent” will be set out at the government’s next spending review, which is not expected until after the election.

Ms Trott’s comments came in a parliamentary answer to the Tory MP James Heappey, who recently quit as Armed Forces minister after calling for a ramping up of defence spending.

Mr Heappey told i the revelation contradicted comments by Mr Hunt on Wednesday that European countries, including the UK, “have to be prepared to spend more on defence”.

The Chancellor’s comments are likely to anger Conservative defence hawks, who say the threat from hostile states means funding should be increased now to prepare UK Armed Forces for a possible commitment in a prolonged war alongside other Nato troops.

But aides to Mr Hunt insisted there was no contradiction between his comments that Europe needs to spend more on defence and the UK Government position of reaching the 2.5 per cent target when the public finances allow. The UK currently spends around 2.3 per cent on defence.

Last week Sir Keir Starmer revealed in an interview with i that Labour would increase defence spending to 2.5 per cent if elected later this year.

In his Budget in March, the Chancellor refused to set aside any extra funds for defence, and the Treasury’s own Red Book revealed that funds would be cut in real terms in 2024-25.

Mr Hunt told Politico on Wednesday: “It’s very important that European countries recognise that when it comes to America’s role in the world, we are actors, not observers.

“In the end, we have to be prepared to spend more on defence. Donald Trump is someone who’s made that case very loudly, but actually, it’s been made by every American president, while I’ve been in public life.

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“And, you know, that is a reasonable request from the United States that Europe contributes more to its own defence.”

A further fall in UK inflation announced on Wednesday is likely to fuel calls for an increase in money for the Armed Forces.

Mr Heappey told i: “The Chancellor is absolutely right, more money does need to be spent on defence in the UK and across Europe. That means we should move to 2.5 per cent of GDP now, especially given today’s positive economic news.

“But the Chancellor’s welcome position this morning is at odds with his deputy’s more cautious response to my question.

“This can’t wait til after the General Election. Making the commitment now would be a huge statement to all Nato allies and our adversaries ahead of the [Nato] Washington Summit this summer.”

In her written answer to Mr Heappey, Ms Trott said: “The government’s aspiration is to invest 2.5 per cent of GDP on defence, when the fiscal and economic circumstances allow.

“The Prime Minister has been clear that the target and path towards 2.5 per cent will be set out at the next spending review.”

The government had spent £24bn more in cash terms since the last election, the Chief Secretary added.

Mr Trump, who could win the US presidency for a second time in November, has repeated his calls for European countries to spend more on defence.

Earlier this year he alarmed western governments by saying he would “encourage” Russia to “do whatever the hell they want” to Nato countries who did not meet the organisation’s 2 per cent of GDP target. This year only 18 out of 31 Nato members are set to reach that threshold.