UK announces biggest defense spending since the Cold War

According to a statement from the Labor Prime Minister’s government, the Defense Investment Plan will have an investment of 298 billion pounds (US$394 billion) over the next four years, including 15 billion pounds (almost US$20 billion) in additional spending to that foreseen in last year’s Spending Review.

These investments will bring UK defense spending to 2.7% of GDP by the end of 2029, still well short of the target of 5% by 2035 set by NATO members last year.

“I’ve taken defense spending to its highest level since the Cold War – and today’s Defense Investment Plan goes even further, committing almost £300 billion over this term to transform our Armed Forces. It’s more resources, spent more efficiently, to keep the country safe and support UK industry, jobs and growth,” said Chancellor of the Exchequer Rachel Reeves.

At the beginning of the month, the United Kingdom’s Defense Secretary, John Healey, resigned from his position, worsening the crisis in Starmer’s government, who later also announced his departure from the British Executive.

In a letter to the Prime Minister, Healey stated that the reason for his departure was insufficient funding for the Defense Investment Plan, which, according to him, falls “far short of what is needed for defense and for the country at this dangerous time”.

The Swedish think tank Stockholm International Peace Research Institute’s (Sipri) annual study on military spending around the world, whose 2025 report was released in April, indicated that the United Kingdom went against its allies and made fewer investments in defense last year.

According to the data, the United Kingdom fell from fourth to sixth place among the countries that spend the most on defense, directing US$89 billion to this area in 2025, a reduction of 2% compared to 2024. British defense investments represented 2.4% of the country’s GDP last year.