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Prime Minister Keir Starmer needs to find money to increase defense spending, but where will it come from? Labour is known for supporting foreign aid, and party members usually want to increase it. Yet, Starmer has just cut it from 0.5% to 0.3% of GDP. Surprisingly, Labour has accepted this without much resistance.
Even Foreign Secretary David Lammy, who is known for promoting humanitarian values, has gone along with it, saying, “We must deal with the world as it is.” That must have been tough for him to admit. Labour MPs don’t usually come into politics to cut foreign aid or spend more on military equipment like guns, missiles, and drones. But that’s exactly what Starmer has done.
If Starmer can make such a drastic change without backlash, then no spending commitment is safe. The economy is already struggling—partly because of the mess left by the Conservatives, who spent public money recklessly for 14 years, and partly because of Chancellor Rachel Reeves, who is struggling to fix it. She is now trying to balance the budget, but her financial plans aren’t adding up.
This means that when she presents her Spring Statement on March 26, there will likely be major spending cuts and possibly tax increases. Reeves was already having a hard time managing the economy before Starmer promised to raise defense spending to 2.5% of GDP by 2027. Now, her job has become even harder.
To find the money, Reeves will have to carefully examine every area of government spending, including welfare. This won’t just affect people who rely on benefits—it could also impact pensioners.
Last week, I pointed out that former U.S. President Donald Trump’s policies could put the UK’s state pension triple lock at risk. Many in the Treasury already oppose it, and now they may feel more confident in challenging it.
Meanwhile, Trump’s recent praise of Russian President Vladimir Putin and criticism of Ukrainian leader Volodymyr Zelenskyy have caused shock around the world. This move has created a clear divide between the U.S. and Europe, leaving many worried about what’s next. Europe and the UK have long assumed the U.S. would always provide military support, but that assumption may no longer be true.
After the fall of the Berlin Wall in 1989, Europe cut defense spending, relying on the U.S. to handle global security. At the same time, the UK government wasted billions on failed projects like HS2 and faulty Covid Test & Trace apps, leaving behind huge debt. Now, Labour would likely spend money just as freely, but they can’t afford to.
Even spending 2.5% of GDP on defense won’t be enough. Some argue that even 3% or 3.5% wouldn’t cover everything needed. However, Labour is still committed to spending billions on projects like the Chagos Islands dispute, Ed Miliband’s Great British Energy project, and costly carbon capture technology.
At the same time, the UK is spending almost £5 billion a year on asylum seekers and refugees. Every part of the budget will now be under review. Starmer has been creative with numbers when talking about defense spending, but world leaders like Trump and Putin will see right through that.
If the UK is serious about supporting Ukraine with troops, then those troops need proper training, salaries, and equipment. That requires real money, not just promises.
Finding the funds won’t be easy. Labour supporters will resist cuts to working-age benefits and changes to the Personal Independence Payment system. But if Starmer can’t cut waste in other areas, he may be forced to look at things like free bus passes, NHS prescriptions for those over 60, and even the state pension triple lock.
Over the past week, more people have started questioning whether the triple lock should continue. If Starmer doesn’t find other ways to save money, these benefits could be at risk. The Daily Express has always supported protecting pensions, and we may have to fight for them again.