Starmer will hope defence boost gets breadth of support - at home and in the USpublished at 14:26 Greenwich Mean Time 25 February

14:26 GMT 25 February

Chris Mason
Political editor

This is a statement that matters for its content and its promises but also for its wider pitch.

The shift of budgets from aid to defence will be cheered by some and criticised by others, perhaps particularly some on the left.

And it is rather different from what Labour said in its election manifesto less than a year ago, which said: "Labour is committed to restoring development spending at the level of 0.7% of gross national income as soon as fiscal circumstances allow."

The prime minister did say today he hoped in the future things might change, but acknowledged "it remains a cut, I will not pretend otherwise".

But the bigger picture is this: an argument that says the world has changed, the relatively benign international picture imagined by some in the 1990s after the fall of the Berlin Wall, is gone and more money needs to be spent keeping us safe.

"The historical load is not as light as it once was" is how Keir Starmer put it and so there would be "the biggest sustained increase in defence spending since the end of the Cold War".

In finding the money from cutting international aid the prime minister avoids awkward domestic trade offs - having to tax more or cut things people might notice day to day.

There are those already saying it is a false economy to cut aid spending - the charity Save the Children are saying so, for instance.

But he will hope there is a breadth of political and public support, as a wider debate about how future proposed increases are paid for begins.

It also - crucially - gives him something in his back pocket to take with him to the White House, where increasing defence spending and cutting aid spending are likely to be given a warm reception.

Nato members, including the UK, had previously pledged in 2014 to spend at least 2% of national income - GDP - on defence per year by 2024, but there have been numerous calls for this target to be increased due to conflicts such as the war in Ukraine.

According to Nato estimates, external for last year, Poland was expected to be the top spender for the second year running, allocating 4.1% of its GDP to defence.

Estonia was in second place at 3.4% and the US in third place at 3.4%, which is about the same level as it has been spending for the last decade.

The UK came ninth on the list, with 2.3%. And as we've been reporting today, UK Prime Minister Keir Starmer has announced plans to increase that figure to 2.5% by 2027.

• Read more: How much do Nato members spend on defence?

Will 2.5% impress Trump?published at 13:55 Greenwich Mean Time 25 February

13:55 GMT 25 February

Jonathan Beale
Defence correspondent

The government had been clear that it would set out it’s plans to increase defence spending to 2.5% – after it had completed a Strategic Defence Review – due to be published in the spring. But that sequencing has now been thrown out of the window.

The prime minister clearly wanted to announce something sooner – ahead of his meeting with Donald Trump.

Will 2.5% impress the US president? Well it’s certainly a step in the right direction.

But the Trump administration has also been telling European Nato allies they should be spending something more like 5% on defence.

Even the head of Nato, Mark Rutte, has said allies should be aiming for something “north of 3%” .

• The government is pledging to increase UK defence spending to 2.5% of GDP by 2027, up from 2.3% - this is the biggest increase in defence spending since Cold War, Starmer said

• He also announced that the UK will increase defence spending to 3% of its GDP in the next parliament
• With these new commitments, he says the UK will spend £13.4bn more on defence every year from 2027 onward

• Foreign aid will be cut from 0.5% to 0.3% in 2027 to fund the greater investment into defence, the Labour leader unveiled

• Starmer said he’s not happy about the cuts to foreign aid, but he’s hopeful that the investment into defence will manifest in British growth through jobs, skills and innovation
• The announcement was welcomed by opposition leaders, as the PM said Ukraine will be happy to see "unity in our house"

A straightforward shift of funding from aid to defencepublished at 13:38 Greenwich Mean Time 25 February

13:38 GMT 25 February

Faisal Islam
Economics editor

It is quite the shock that the aid budget has been cut to 0.3% of national income.

It is a straightforward shift of funding from aid to defence. The talk ahead of the election was about a return of this aid budget to 0.7% of national income after it was cut by Rishi Sunak.

Instead it has been cut further. Since 2019, all recipients of UK aid have seen significant cuts.

This will require further tough choices on climate funding, perhaps for institutions such as the World Bank, and for some of the humanitarian funding for the poorest countries in the world.

Bilateral spending has already taken a big hit under the previous government to maintain spend on the multilateral institutions.

The Labour manifesto criticised the Conservative loss of “world leading expertise on international development”.

“Under the Conservatives, this capacity has been degraded, and as a result Britain has lost influence. Labour will turn the page to rebuild Britain’s reputation on international development with a new approach."

The decision reflects a new global reality, a significant change of strategy for the government.

It also reflects the desire of the chancellor to ensure this new injection into defence spending is fully funded, without the need for tax rises or risking spooking markets.

This would pretty much take the proportion of the economy spent on international aid back to levels inherited by Tony Blair and Gordon Brown, before the major Make Poverty History and Live 8 campaigns on the 0.7% target.

But the UK’s efforts to set an example on aid for the rest of the world will be hit hard at a time when the US is also significantly cutting the USAID budget.

A boost to the British militarypublished at 13:34 Greenwich Mean Time 25 February

13:34 GMT 25 February

Jonathan Beale
Defence correspondent

Image source, Reuters

An increase in spending 2.5% of GDP on UK defence will certainly help Britain’s Armed Forces – which have experienced severe cuts since the end of the Cold War.

But it will not get them everything they want - or completely reverse the “hollowing out” of the UK’s military capabilities.

Even before this extra cash injection, the Ministry of Defence was facing a black hole in its equipment budget of around £17bn over the next decade – according to the National Audit Office.

The MoD is still having to fund big ticket items such as renewing the UK’s nuclear deterrent as well as developing a new fighter jet programme – alongside Italy and Japan.

Costs of such ambitious programmes tend to rise and no one can be sure of the final bill. The war in Ukraine has highlighted the need for Britain to address its shortage of long-range artillery and ground based air defence systems and also the need for more drones.

The RAF wants to buy more F-35 jets. A fleet of new frigates is already being built for the Royal Navy, but it also wants new multi role assault ships for the Royal Marines and new fleet solid support ships to sustain its two aircraft carriers on deployment.

The rise to 2.5% will not fund all that.

The session in the House of Commons is shortly coming to an end, but stick with us and we'll catch you up on the key takeaways from the prime minister's announcement.

We'll also bring you some analysis on what the increase in defence spending means for Britain's position in Europe - and whether Donald Trump will be satisfied with Starmer's plans ahead of the pair's Washington meeting later this week.

And, as the prime minister wraps up his statement now, we'll keep an ear across Parliament - you'll hear any further news lines as they happen.

A bit earlier, Davey asked Starmer if he would convene European leaders to "begin the seizure of Russian assets so we can support Ukraine no matter what America does".

The Lib Dems leader also asked the prime minister if he will try to persuade US President Donald Trump to do the same and "make Russia pay".

Should that not work, he asked if the PM would make it clear that if absolutely necessary, the UK will stand with Ukraine and European allies, not Putin and Trump.

Starmer replied by saying he agrees the UK needs to take a leading role in Europe.

"We do need to step up and lead in Europe...but we need to do that together with the US because what is needed more than anything is a lasting peace," he said, adding security guarantees are also needed.

On Davey's questions about seized Russian assets, Starmer says the £3bn of interest on those assets have already been committed to Ukraine.

A blow to recipients of overseas aid - but a reprieve for other departmentspublished at 13:21 Greenwich Mean Time 25 February

13:21 GMT 25 February

Dharshini David
Chief economics correspondent

The prime minister's intention to increase defence spending to 2.5% of the nation's income, or GDP, will be funded by a reduction in the overseas aid budget by billions of pounds to 0.3% of national income.

This is a blow to recipients of such aid and those who had pinned their hopes on a previous government pledge that that budget would be increased to 0.7% of national income when "fiscal circumstances allow".

But it's a reprieve for other departments - covering areas such as justice and higher education - whose budgets are already under pressure and may not keep up with inflation in the second half of the Parliament .

However, it may be temporary relief. It's widely expected that, in order to meet her own rules on the public finances, the chancellor will unveil less ambitious spending plans next months, which could leave such departments even more stretched.

And there could further challenges in store to meet the longer-term ambition to raise defence spending to 3% of GDP, if we don't see an improvement in growth.

Starmer to carry defence spending increase with him to Washingtonpublished at 13:12 Greenwich Mean Time 25 February

13:12 GMT 25 February

James Landale
Diplomatic correspondent

Keir Starmer’s promise to increase defence spending comes after many months of US pressure urging Europe to take more responsibility for its own security.

And it comes only days before he heads to Washington to see Donald Trump.

This means the prime minister can go to the White House with a firm commitment that should earn him diplomatic credit with the US president.

His task will be to use that credit to try to persuade Trump to maintain America’s support for Ukraine and ensure US involvement in any post-war security guarantees.

This decision will also give the PM credit among European allies and might go some way to convince other leaders to follow suit.

In times past, foreign dignitaries visiting emperors used to come bearing gifts and tributes.

The promise to increase defence spending is what Starmer will carry with him to Washington. The key question now is whether it will be enough to satisfy the president.

Liberal Democrats leader Ed Davey rises, and says: "We may be watching the betrayal of our Ukrainian allies by America and with it, the potential betrayal of Europe and of Britain, too."

It is up to the UK to lead in Europe, he says, and voices his party's support for the government's proposals on Ukraine and the rise in defence spending.

He says its preferable that seized Russian assets are used to pay for extra defence support for Ukraine.

Image source, House of Commons

Starmer is now thanking Badenoch for the support she and her Tory colleagues have shown on Ukraine and on today's announcement.

He says Ukraine will want to see "unity in our house", something he hopes will continue.

He addresses a question from Badenoch about whether there will be increases in taxing and borrowing to pay for the rise in defence spending.

"The answer to that is no," Starmer says, adding that is why he has set out precisely how the government will pay "pound for pound" for the increase.

This has meant "a very difficult decision on overseas development," he adds.

Image source, House of Commons

A big moment comes for the Starmer ahead of Trump meetingpublished at 13:05 Greenwich Mean Time 25 February

13:05 GMT 25 February

Vicki Young
Deputy Political Editor

This is a huge moment for Starmer which will certainly help smooth relations with US President Trump when they meet later this week.

Increasing defence spending and using a chunk of the aid budget to pay for it will be welcomed by most Conservatives, but watch out for unease among Labour MPs.

He’s framing it as a “generational” response, almost a war effort to protect the UK’s security.

The PM will hope that he’s praised for showing leadership on the world stage and that this announcement will give him influence in the discussions to come over Ukraine.

Image source, US Gov

Badenoch says that national interests "should always come first" and that everyone on the opposition's side of the House welcomes the increase in defence spending to 2.5% by 2027.

She also personally welcomes the move to redirect money from the overseas aid budget.

The Tory leader asks Starmer if he can say that the 2.5% figure by 2027 is sufficient, adding that he must not raise taxes, nor borrow more.

"We all know that he must make difficult decisions on spending - he has our support to do that," she says.

Image source, House of Commons

Conservative leader Kemi Badenoch is now speaking.

While she welcomes Starmer's commitment to helping Ukraine, the West "hasn't done enough to support Ukraine".

She says she is "proud" of how her party has previously supported Ukraine, says the West needs to be "intensely robust" in the face of Putin's aggression.

In the last 20 years, she says, we've learned this about Putin: "He only comes back for more."

Badenoch, however, notes: "It is up to them [Ukraine] to decide their future."

She also reiterates the need for Ukraine to be present at the negotiating table.

Image source, House of Commons

Starmer continues his address in the Commons by again stressing that the defence and security of British people must come first.

"Our whole approach to national security must now change," he says, adding that they will ask British industry, businesses, universities, and British people to play a bigger part.

The first test of our defence policy is if it keeps our country safe, Starmer says, adding that the second test should be to see if it improves the conditions of British people.

"We'll use this investment as an opportunity, we'll translate defence spending into British growth, jobs, skills, innovation. We will use the full powers of the Procurement Act to rebuild our industrial base," he says.

The cut in the government's spending in development assistance "is not an announcement I am happy to make," Starmer says.

He says he is proud of the UK's record and it will continue to play a key humanitarian role in Sudan, Ukraine and in Gaza, tackling climate change, supporting global health and vaccinations, he says.

He adds that as the asylum seeker backlog is cleared, there are efficiencies that will reduce the need to cut spending on overseas programmes.

• For context: Here's what the Labour's manifesto said on its commitment to international aid: "Labour is committed to restoring development spending at the level of 0.7% of gross national income as soon as fiscal circumstances allow"

The government will cut spending on development assistance from 0.5% to 0.3% in 2027 to fund the greater investment in defence, Starmer says.

Starmer says it will spend £13.4bn more on defence every year from 2027.

He adds that the UK also faces further threats such as cyber attacks, sabotage and assassinations.

Our intelligence services are becoming more and more important so we will recognise their service by spending 2.6% of our national income after 2027.

Starmer pledges to reach defence spending to 3% of GDP in the next parliament.

He says Europe has to "do more".

Image source, House of Commons

UK Prime Minister Keir Starmer announces that the UK will raise defence spending to 2.5% of GDP by 2027.