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Nato Plans 3.5% GDP Defence Benchmark, Tightening Pressure on UK

A Nato investment plan at the Hague summit later this month will press Britain to raise its defence budget from 2.5% of GDP toward a core spending target of 3.5%

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NATO Secretary General Mark Rutte speaks during a media conference prior to a meeting of the Ukraine Defense Contact Group at the NATO headquarters in Brussels, Wednesday, June 4, 2025. (AP Photo/Virginia Mayo)
British Defence Secretary John Healey speaks during a joint news conference with Ukrainian Defence Minister Rustem Umerov and German Defence Minister Boris Pistorius (both not pictured), after a meeting of the Ukraine Defense Contact Group, as a part of a NATO Defence Ministers' meeting at the Alliance's headquarters in Brussels, Belgium June 4, 2025. REUTERS/Yves Herman

Overview

  • NATO Secretary General Mark Rutte has proposed core military spending of 3.5% of GDP plus 1.5% for defence-related measures to be agreed at the Hague summit.
  • US ambassador to Nato Matthew Whitaker has demanded that all alliance members commit to 5% of GDP on defence and security starting immediately.
  • The UK government has pledged to lift defence spending to 2.5% of GDP by 2027 with a 3% ambition in the next parliamentary term but has not provided a firm timetable or funding plan.
  • The Strategic Defence Review outlines investments in 12 new attack submarines, six munitions factories and up to 7,000 long-range weapons to achieve war-fighting readiness against growing Russian threats.
  • The Institute for Fiscal Studies warns that meeting a 3.5% defence spending target could add up to £40 billion a year to the budget, likely requiring tax increases or cuts to other public services.