UK Tax Hike Warning: Kier Starmer Admits ‘Difficult Decisions’ Ahead After Defence Pledge

Britons might have to pay higher taxes to support the government’s plans to increase defence spending, according to analysts. Prime Minister Sir Keir Starmer has announced plans to raise defence spending from 2.3% to 2.5% of GDP by 2027, with a goal of reaching 3% by the end of the current Parliament. To fund this, the government has decided to cut the foreign aid budget. However, experts warn that these cuts alone won’t be enough to cover the costs, and taxpayers may end up footing the bill.

The Institute for Fiscal Studies (IFS) has pointed out that the actual increase in defence spending would be around £6 billion, not the £13.4 billion figure mentioned by the Prime Minister. Ben Zaranko from the IFS explained that if defence spending needs to rise to 3% of GDP, the government will face tough choices—either raising taxes or cutting spending in other areas. He also noted that the £13.4 billion figure seems exaggerated and doesn’t align with the actual increase in spending.

During a discussion in Parliament, Starmer assured that taxes would not need to rise to fund the initial increase to 2.5% of GDP. He explained that the government has already outlined how it will pay for this increase, primarily by cutting the foreign aid budget. However, he admitted that this was a difficult decision and not one he was happy to make.

Despite this, analysts remain concerned about how the government will fund the larger goal of reaching 3% of GDP for defence spending. Lieutenant Stuart Crawford, speaking to GB News, praised the government’s decision to cut the aid budget but warned that raising taxes, including income tax, might be unavoidable in the long term. He acknowledged that such measures would likely be unpopular with voters.

Chancellor Rachel Reeves has already faced criticism for her tax decisions in last year’s Autumn Budget, particularly from farmers and business leaders. Meanwhile, Cabinet minister Pat McFadden has emphasized that there is “no easy way” to find the money needed to boost defence spending. He acknowledged that people will have different opinions on how to fund it, whether through taxes, borrowing, or other means, but stressed that tough decisions are necessary.

In summary, while the government has found a short-term solution by cutting foreign aid, the long-term funding for increased defence spending remains unclear, and higher taxes could be on the horizon for Britons.