Overview
- Labour’s spending review commits the UK to raising defence outlays to 2.5% of GDP by 2027, claiming 2.6% with added intelligence, foreign office and Ukraine war costs.
- Former defence secretary Ben Wallace and Tory sources contend that including 0.16% of GDP in intelligence spending means core military funding will be closer to 2.37%.
- Britain has proposed delaying a NATO 3.5% GDP defence target until 2035, pushing back against US and secretary-general Mark Rutte’s call for a 2032 date and a 5% long-term goal.
- Rachel Reeves describes the review as the largest defence uplift since the Cold War but offers no detailed path to a 3% baseline in the next parliament.
- Canada has declared a 17% defence budget boost to CA$62.7 bn for 2025–26 to reach 2% of GDP by fiscal year-end as NATO considers steeper spending goals.