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UK's Starmer readies order to raise defence spending, Sunday Times reports

Published by Global Banking & Finance Review

Posted on February 16, 2025

2 min read

· Last updated: January 26, 2026

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UK Prime Minister Keir Starmer discusses defence spending amidst US pressure - Global Banking & Finance Review
This image illustrates UK Prime Minister Keir Starmer, who is preparing to raise defence spending to 2.5% of GDP. This decision comes under pressure from the US for increased European security contributions, as reported by the Sunday Times.
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(Reuters) - British Prime Minister Keir Starmer is preparing to overrule his finance minister Rachel Reeves and order more defence spending, after the United States demanded that Europe pays more for

UK's Starmer Plans to Boost Defence Spending Under US Pressure

(Reuters) - British Prime Minister Keir Starmer is preparing to overrule his finance minister Rachel Reeves and order more defence spending, after the United States demanded that Europe pays more for its security, the Sunday Times reported.

Citing sources, the newspaper said Starmer is due to fly to Washington next week to speak with U.S. President Donald Trump, with an announcement due as early as Monday.

Starmer's Labour government has committed to raising defence spending to 2.5% of economic output from around 2.3% now but has not yet set out a timetable.

Reeves, who is preparing a major spending review, already faces a challenge to deliver promises to improve public services and raise economic growth without running afoul of her fiscal rules - which look at risk of being breached.

"In the end, it's the prime minister's decision on national security. This one does sit with the PM," the Sunday Times quoted a Starmer ally as saying.

"We know we have to set out when we're getting to 2.5%. The defence and security review will still do what we needed to do."

The prime minister's office was not immediately available for comment.

Starmer on Saturday said his country would work to ensure the U.S. and Europe remained together and that they should not allow divisions to distract them from "external enemies".

His comments came after Trump's Ukraine envoy told the Munich Security Conference that Europe would not have a seat at the table for Ukraine peace talks.

Asked on Sunday if Reeves would be happy to raise defence spending, business and trade secretary Jonathan Reynolds told Sky News: "(She) knows more than most people the pressures on public services across the board, but defence has to be the cornerstone of our national prosperity as well as our security."

(Reporting by Andy Bruce; Editing by Angus MacSwan)

Key Takeaways

  • UK PM Keir Starmer may overrule finance minister on defence spending.
  • US demands Europe increase security contributions.
  • UK aims to raise defence budget to 2.5% of GDP.
  • Starmer to discuss plans with US President Trump.
  • Labour government faces fiscal challenges with increased spending.

Frequently Asked Questions

What is the main topic?
The article discusses UK Prime Minister Keir Starmer's plan to increase defence spending in response to US demands for greater European security contributions.
Why is the UK increasing defence spending?
The UK is responding to US demands for Europe to pay more for its security and plans to raise defence spending to 2.5% of GDP.
Who is involved in the decision to increase spending?
UK Prime Minister Keir Starmer and finance minister Rachel Reeves are involved, with Starmer potentially overruling Reeves.

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