Rishi Sunak announces ‘turning point’ in European security as UK to increase defence spending is biggest since the Cold War

Today, on Tuesday, April 23, Prime Minister Rishi Sunak declared a significant enhancement of the UK’s national defence, the largest in a generation. This includes a fully financed strategy to increase the defence budget to 2.5% of GDP by 2030.

While delivering a speech in Poland alongside NATO Secretary-General Jens Stoltenberg, the Prime Minister emphasized that we are at a pivotal moment in European security and called on allies to intensify their efforts.

Autocratic nations such as Russia, Iran, and China are increasingly collaborating to destabilize democracies and restructure the global order. They are also heavily investing in their militaries, cyber capabilities, and affordable technology, such as the Shahed attack drones Iran launched towards Israel last weekend.

This presents a direct risk to the lives and livelihoods of people in the UK, Europe, and the wider world. The UK government has already pledged a record investment in defence, and the UK armed forces are world-leading. However, the Prime Minister insists that we must take additional action now to counter these escalating threats.

With today’s declaration, UK defence spending will immediately increase and then steadily rise to £87 billion by the end of the decade, reaching 2.5% of GDP by 2030.

The Prime Minister has set out three areas of focus for our bolstered defence budget:

• Firing up the UK defence industrial base: Investing at least an additional £10 billion over the next decade on munitions production, delivering high-quality jobs and investment across the UK and ensuring we have rapid production capacity and stockpiles of next-generation munitions.
• Modernising our Armed Forces: Radically reforming defence procurement and creating a new Defence Innovation Agency to ensure the UK is at the cutting edge of modern warfare technology, with at least 5% of the defence budget to be committed to R&D.
• Backing Ukraine’s defence: Ukraine’s security is our security. As part of this plan, the Government will commit an additional £500 million this year for the ammunition, air defence and drones Ukraine needs; the largest-ever single delivery of military equipment to Ukraine’s frontlines; and a cast-iron commitment to maintain existing levels of support to Ukraine for as long as it Is needed.

Prime Minister Rishi Sunak said:

“In a world that is the most dangerous it has been since the end of the Cold War, we cannot be complacent. As our adversaries align, we must do more to defend our country, our interests, and our values.

“That is why today I have announced the biggest strengthening of our national defence for a generation. We will increase defence spending to a new baseline of 2.5% of GDP by 2030 – a plan that delivers an additional £75 billion for defence by the end of the decade and secures our place as by far the largest defence power in Europe.

“Today is a turning point for European security and a landmark moment in the defence of the United Kingdom. It is a generational investment in British security and British prosperity, which makes us safer at home and stronger abroad.”

This is a fully funded plan to deliver the most significant transformation of our national defence since the Cold War.

Defence spending will immediately increase and rise linearly, with an additional £500 million for Ukraine this year and an overall increase of £3 billion in the next fiscal year. Today’s announcement will result in an additional £75 billion for defence over the next six years, with defence spending expected to reach £87 billion annually by 2030.

This establishes a new benchmark for other major European NATO economies to follow. If all NATO countries committed at least 2.5% of their GDP to defence, our collective budget would increase by more than £140 billion.

Chancellor of the Exchequer Jeremy Hunt said:

“It speaks to Britain’s global role that, with an improving economy, we are able to make this commitment to peace and security in Europe. It also sends the clearest possible message to Putin that as other NATO European countries match this commitment, which they will, he will never be able to outspend countries that believe in freedom and democracy.”

Defence Secretary Grant Shapps said:

“As I argued in my Lancaster House speech earlier this year, we are living in a much more dangerous world. Between Russia’s invasion of Ukraine, Iran and its proxies seeking to escalate deadly conflict, and China flexing its muscles, there can be no doubt that the era of the peace dividend is clearly over. 

“The mounting threats we face mean we must invest in defence if we are to continue to defend our values, freedoms and prosperity. 

“Today’s announcement marks the single greatest strengthening of our defence since the Cold War, which will support jobs, boost growth, and strengthen our incredible Armed Forces as a modern fighting force.”

The war in Ukraine has shown us that battlefield success relies on the ability to surge defence production and maintain ‘always on’ production to replenish key equipment. Therefore, we will invest an additional £10 billion over the next decade, most of which will be spent with British industry, to expand our domestic munitions production pipeline and increase stockpiles.

The investment will concentrate on key high-tech capabilities, including air defence missiles and anti-armour munitions, in addition to continued investment in UK-built 155mm artillery ammunition. Defence already supported more than 400,000 jobs in 2021/22 – the equivalent of 1 in every 70 UK jobs – but today’s announcement will support new high-quality jobs and economic growth across all parts of the UK.

The Prime Minister’s reforms announced today will also ensure we are investing in the right technologies and getting more value for taxpayers’ money in defence.

A newly established Defence Innovation Agency will manage increased investment in R&D, consolidating the fragmented defence innovation landscape into a single responsible organization. This includes R&D in new weapons systems such as Directed Energy Weapons or Hypersonic Missiles, as well as space capabilities and other emerging technologies. We will invest in areas that provide advantage on the modern battlefield and better exploit low-cost solutions, like the inexpensive Unmanned Surface Vehicles seen in Ukraine.

The DragonFire laser weapons system, supported by a £350 million government investment, is capable of targeting any visible airborne object at approximately £10 per shot. Its precision is akin to hitting a pound coin from a distance of one kilometre. The system is set to be installed on Royal Navy vessels well ahead of the projected 2027 timeline.

weapons system, supported by a £350 million government investment, is capable of targeting any visible airborne object at approximately £10 per shot. Its precision is akin to hitting a pound coin from a distance of one kilometre. The system is set to be installed on Royal Navy vessels well ahead of the projected 2027 timeline.

Furthermore, the Prime Minister announced plans today to transform the Ministry of Defence’s Head Office into a fully operational strategic headquarters. This will hold the front line command responsible for delivery, promote better pan-defence prioritisation, and ensure value for money, all under the support of the National Security Council.