Plans to increase UK defence spending to 2.5 per cent of GDP by 2030

The prime minister has announced plans to increase defence spending to 2.5 per cent of GDP by 2030.

Rishi Sunak made the announcement on a trip to Poland, alongside NATO secretary-general Jens Stoltenberg.

During his speech the prime minister said the we are at a turning point in European security and called for allies to step up.

According to a government statement, "an axis of autocratic states like Russia, Iran and China are increasingly working together to undermine democracies and reshape the world order".

The announcement means that defence spending will increase immediately and then rise to hit £87 billion at the end of the decade and reach 2.5 per cent of GDP.

There are three areas of focus for the increased defence budget. The first is to fire up the UK defence industrial base, which would involve investing at least an additional £10 billion over the next decade on munitions production.

The second focus is modernising the armed forces by reforming defence procurement and creating a new Defence Innovation Agency to ensure the UK is at the cutting edge of modern warfare technology, with at least 5% of the defence budget to be committed to R&D.

The final focus is backing Ukraine's defence with the government backing an additional £500 million this year for the ammunition, air defence and drones Ukraine needs.

Sunak said: “In a world that is the most dangerous it has been since the end of the Cold War, we cannot be complacent. As our adversaries align, we must do more to defend our country, our interests, and our values.

“That is why today I have announced the biggest strengthening of our national defence for a generation. We will increase defence spending to a new baseline of 2.5% of GDP by 2030 – a plan that delivers an additional £75 billion for defence by the end of the decade and secures our place as by far the largest defence power in Europe.

“Today is a turning point for European security and a landmark moment in the defence of the United Kingdom. It is a generational investment in British security and British prosperity, which makes us safer at home and stronger abroad.”

Defence Secretary Grant Shapps said: “As I argued in my Lancaster House speech earlier this year, we are living in a much more dangerous world. Between Russia’s invasion of Ukraine, Iran and its proxies seeking to escalate deadly conflict, and China flexing its muscles, there can be no doubt that the era of the peace dividend is clearly over.

“The mounting threats we face mean we must invest in defence if we are to continue to defend our values, freedoms and prosperity.

“Today’s announcement marks the single greatest strengthening of our defence since the Cold War, which will support jobs, boost growth, and strengthen our incredible Armed Forces as a modern fighting force.”