Rishi Sunak Announces Increase In Defence Spending To 2.5% Of GDP By 2030

Prime Minister Rishi Sunak has announced an increase in defence spending to 2.5 per cent of GDP by 2030, which he called the "biggest strengthening of our national defense for a generation".

The Government currently spends just over 2 per cent on defence, previously saying it would only increase spending to 2.5 per cent when fiscal and economic circumstances allow. The increase to 2.5 per cent would make the UK the fifth-highest spender as a proportion of GDP in NATO.

Sunak travelled to Poland on Tuesday alongside Chancellor Jeremy Hunt and Defence Secretary Grant Shapps to announce the UK will provide an additional £500m to Kyiv, as well as increasing overall defence spending.

He said the increase in defence spending would start today and rise steadily each year over the next six years to 2030.

"We'll invest an additional £75bn in our defence and it will be fully funded with no increase in borrowing or debt," he said.

"So this is not some vague aspiration for the future. We have a clear plan for what will spend, when will spend it and how we pay for it. A plan that makes the United Kingdom by far the largest defence power in Europe, and second largest in NATO."

The announcement also included an increase in defence R&D at a minimum to 5 per cent of the defence budget and invest more in autonomous drones. Sunak also said a new Defence Innovation Agency would be set up so that "decisions about defence innovation will be brought together in a single strategic agency that will be freed from red tape and work with the private sector on emerging new technologies".

Sunak added that the government would ensure defence investment counts towards environmental, social and governance assessments. 

The Prime Minister said that he wanted to