UK to increase defence spending to 2.5% of GDP by 2027 with ‘ambition’ of raising it to 3% by 2029
Bankinter | The Prime Minister (Keir Starmer) announced that he will increase defence spending to 2.5% of GDP by 2027 with the ‘ambition’ of raising it to 3% by 2029 (vs. the current 2.3%). According to Starmer, the increased defence spending will not be financed by tax rises or increased debt, but rather by cutting ‘expenditure on overseas development’. Opinion of the Bankinter analysis team: Good news for the defence…