Military spending will be a top priority for Andy Burnham's government, according to Defence Secretary Wes Streeting, who argued that increased defence investment makes an enormous contribution to economic growth. Speaking at the Farnborough airshow, Streeting promised clarity for the arms industry while acknowledging tough choices ahead for other departments.
Defence as an Economic Driver
Streeting emphasised that spending more on defence comes at an opportunity cost across government, meaning the Ministry of Defence must demonstrate it is using existing resources wisely. However, he firmly backed the prime minister's commitment to lift UK defence spending from 2.6% of GDP to the NATO target of 3.5% by 2035. This implies a real-terms increase of more than £25 billion in less than a decade.
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In a video address preceding Streeting's speech, Burnham said military spending would help reindustrialise the UK. “We are going to honour our commitments on defence and use that investment to transform people’s lives,” he added. The last time UK defence spending reached 3.5% of GDP was in the early 1990s, after the Cold War.
Geopolitical Context and Priorities
Renewed Russian aggression, concerns about China, and pressure from the US on European NATO allies have driven the strategic rethink. Expectations that the UK would meet spending obligations originally demanded by Donald Trump have been reinforced by Burnham’s appointment of former defence secretary John Healey as chancellor. This signals strong alignment between No 10, the Treasury, and the MoD.
Comparison of Defence Spending Targets
| Year | UK Defence Spending (% of GDP) | NATO Target |
|---|---|---|
| 2025 (current) | 2.6% | 2% minimum |
| 2035 (planned) | 3.5% | 3.5% (recommended) |
The increase would reposition the UK among the top NATO spenders, but Streeting cautioned that the military must prove it can allocate resources efficiently.
Streeting's Stance on Israel
In a separate remark, Streeting criticised Israel for having “fallen short” in its conduct during the war in Gaza and operations in the West Bank. He said defence was the portfolio he wanted after resigning as health secretary in May, underscoring his focus on military reform and international obligations. The background to this story is set out in Defence Spending Debate: Two Diners Clash Over Waste and Taxes.
Key Takeaways
- Defence spending prioritised over other government departments to drive economic growth.
- UK aims to reach 3.5% of GDP by 2035, a £25 billion real-terms increase.
- Geopolitical threats from Russia and China, plus US pressure, fuel the shift.
- John Healey as chancellor ensures Treasury-MoD alignment.
- Streeting calls for efficient spending and criticises Israel's conduct.
FAQ
Why is the Burnham government prioritising military spending?
The government believes increased defence investment will fuel economic growth and reindustrialisation, while addressing heightened threats from Russia, China, and NATO expectations.
How much will UK defence spending increase?
The UK plans to raise defence spending from 2.6% to 3.5% of GDP by 2035, representing a real-terms increase of over £25 billion compared to current levels.
What does this mean for other government departments?
Streeting acknowledged an opportunity cost, meaning other areas like health and education may face tighter budgets as defence becomes a top spending priority.
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