Reeves ‘absolutely committed’ to spending 2.5% of GDP on defence

Chancellor Rachel Reeves said an increase in spending in line with what Labour promised in its manifesto will be done ‘in the proper way’.

The Chancellor has said she is “absolutely committed” to spending 2.5% of gross domestic product (GDP) on defence, as Nato countries come under pressure to increase their spending amid fears the US could reduce its financial backing for European security.

Rachel Reeves said that an increase in spending in line with what Labour promised in its manifesto will be done “in the proper way”.

It comes as the US has been demanding Europe do more to pay and provide for its own security, while initiating talks with Russia that could broker peace in Ukraine.

Chancellor Rachel Reeves with House Of The Dragon executive producer Kevin de la Noy during a visit to Warner Brothers Studios Leavesden, Watford (Stefan Rousseau/PA)

Speaking to broadcasters at Warner Bros studios near Watford on Thursday, Ms Reeves said: “I am absolutely committed to spending 2.5% of GDP on defence.

“I’m really clear that a strong economy depends on strong defences and our national security being protected, so we will set out that pathway to 2.5% of GDP.

“We will do it in the proper way, but no-one should be in any doubt about my commitment to spend 2.5% of GDP on defence.”

The UK currently spends around 2.3% of GDP on defence, but the Government has committed to setting out a “pathway” to 2.5%.

In a press conference ahead of his inauguration in January, US President Donald Trump called on Nato allies to spend 5% of their GDP on defence.

Last week US and Russian officials met for the first time in Riyadh, Saudi Arabia, to begin talks aimed at brokering a peace deal in Ukraine.

Defence Secretary John Healey reasserted the pledge that Nato countries will “do more”, while on a visit to Norway.

Defence Secretary John Healey in Norway — Defence Secretary John Healey (second right) and Norwegian defence secretary Tore Sandvik (second left) on board the British Royal Fleet Auxiliary ship Proteus, docked in the town of Bodo, Norway (PA Video)

Speaking at a press conference alongside his Norwegian counterpart Tore Sandvik he said that Russian leader Vladimir Putin wants to “divide Nato”.

He added: “In the last year, the non-US nations of Nato increased defence spending by 20%, so we are stepping up on European security.

“We recognised in the discussions that I chaired earlier this week in Nato that we must do more, and we will.

“That isn’t just about how much you spend. It’s about how you spend it.

“And Nato also needs nations like Norway, like the UK, ready to set new standards of how we work together, we plan together, we deter together and if necessary, we will fight together.”