Key facts
- The Treasury has not analyzed the trade-offs for the UK to meet NATO's 3.5% of GDP defense spending target.
- Chief Secretary Lucy Rigby stated that decisions on funding additional defense spending would be for the next government.
- Meeting the 3.5% target could require an additional £30-40 billion, potentially necessitating a 3-4p increase in income tax.
- The government has an interim target of 3% defense spending for the next parliament.
- An additional £4.7 billion needs to be found in the upcoming autumn budget.
The UK Treasury has not conducted an analysis of the trade-offs required to meet NATO's defense spending target of 3.5% of GDP by 2035, according to Chief Secretary Lucy Rigby. Speaking to a parliamentary committee, Rigby stated that decisions on funding this pledge would be the responsibility of the next government. The current plan allocates an additional £15 billion to the Ministry of Defence over four years, bringing spending to 2.7% of GDP. Rigby acknowledged that an additional £4.7 billion would need to be secured in the upcoming autumn budget. The next spending review is anticipated around mid-2027, at which point the path to the 3% defense spending target for the next parliament will be addressed.