The United Kingdom announced today its intention to increase defense spending by £2.9 billion ($3.8 billion) for the upcoming year, as detailed in the newly released budget. Rachel Reeves, the UK Chancellor, shared this increase with lawmakers during a parliamentary address, although she noted that the Labour Party’s manifesto commitment to reach 2.5% of GDP for defense spending would be addressed at a later fiscal event.
Reeves stated, “I am announcing a total increase to the Ministry of Defence’s budget of £2.9 billion next year, ensuring that the UK comfortably exceeds our NATO commitments and providing guaranteed military support to Ukraine of £3 billion per year for as long as it takes.”
For the 2023 to 2024 fiscal year, the UK is projected to spend £54 billion on defense, which represents approximately 2.33% of GDP. To date, the UK has pledged £12.8 billion in military, economic, and humanitarian aid to Ukraine, including a recent announcement of a £2.3 billion loan funded by frozen Russian assets.
The Autumn Budget 2024 document highlights that the new funding will enable the UK armed forces to modernize and sustain their leading role within NATO. This includes strengthening capabilities related to the nuclear deterrent, combat and surveillance aircraft, surface and submarine fleets, forward land forces, Special Forces, and cyber and space operations.
However, experts have raised concerns about whether the UK can effectively meet its NATO commitments, particularly regarding the British Army’s ability to deliver a Strategic Reserve Corps, which is intended to consist of two divisions and additional supporting troops. Jack Watling, a senior research fellow for land warfare at the Royal United Services Institute (RUSI), noted in July that the current British Army is significantly under-equipped, fielding only half of a heavy brigade’s worth of equipment.
Former British Army Chief Patrick Sanders acknowledged that the UK’s warfighting support for Ukraine, which included sending 14 Challenger 2 main battle tanks and 30 AS90 155mm self-propelled guns, would temporarily weaken the Army.
Prior to losing office, the Conservative government had committed to achieving a 2.5% GDP target by the end of the decade, potentially resulting in a defense budget of £87 billion by 2030. However, the Labour government has yet to outline a specific timeline to meet this GDP commitment.
In response to pressing global security threats, the new government has initiated a Strategic Defence Review (SDR), expected to report in mid-2025. This review aims to evaluate national defense priorities and strategies in light of challenges posed by Russia, conflicts in the Middle East, and a rising China in the Indo-Pacific region.
Despite the planned increase in spending, financial challenges loom, exacerbated by a £43 billion deficit in the ten-year spending plan identified by the National Audit Office, putting pressure on future defense capabilities and planning until the SDR is published.