Starmer Unveils Post-WWII Defense Revitalization Plan, Boosting Budget to 3% GDP by 2027

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Thursday, May 8, 2025 8:08 am ET1min read

British Prime Minister Keir Starmer has announced an ambitious plan to initiate the most significant era of defense revitalization since World War II. This declaration comes as part of an effort to convince disgruntled voters of the economic benefits of increased defense spending.

In a speech commemorating the 80th anniversary of the end of the war, Starmer addressed military personnel and defense companies in London. He emphasized that the government is set to implement the most ambitious defense and rebuilding plan since 1945. Over the coming weeks, ministers will release a strategic defense assessment report outlining areas where Britain aims to bolster its military capabilities and detailing new plans for national security and the defense industry.

This announcement is set against a backdrop of growing skepticism about the U.S. support for European security under the leadership of Donald Trump, as well as perceived threats from Russia, which Starmer described as a challenge for a generation. The Labour government has previously announced plans to increase the defense budget to 3% of GDP by 2027, up from the current 2.3% and reaching 2.5% by 2027.

Starmer also mentioned that he would provide updates on the latest developments in trade negotiations with the U.S. earlier in the day. This follows Trump's earlier statement about an impending trade agreement with a major nation, which sources indicated was Britain.

In his address, Starmer underscored that national security is intrinsically linked to economic security. He argued that enhancing defense capabilities would create jobs, wealth, and opportunities across the nation, thereby ensuring Britain's security. "There has been much discussion about the end of the peace dividend. Our task now is to seize the defense dividend, making it directly felt in the pockets of working people and creating jobs for the future," he stated.

To support this initiative, Starmer announced a £563 million (approximately $749 million) contract with Rolls-Royce Holdings to maintain Britain's Typhoon fighter jet fleet. This contract is part of a broader strategy to position the British defense industry as a key driver of national revitalization.

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