Response to Keir Starmer's defence spending announcement

This week, in light of a shifting global context, UK Prime Minister Keir Starmer announced that defence spending will rise to 2.5% of GDP by 2027. “We will use this investment as an opportunity,” Starmer said. “We will translate defence spending into British growth, British jobs, British skills, British innovation.”

This will mean an additional £13.4bn in annual spending from 2027, with budgets reassessed across the government’s portfolio. There is also an increased focus on the role of the UK’s security services in protecting the country, which will push total spending to 2.6% from 2027. This, along with new measures to boost small businesses benefitting from UK’s defence investment.

The announcement signals a re-evaluation of what it takes to stay ahead in an increasingly risky landscape, amidst threats from hostile states.

The Public Digital view

An increase in spending brings an opportunity to do things differently. As our CEO Ben Terrett said, “The test-and-learn approach, endorsed by Pat McFadden last year, must be implemented to turn around the multi-million-pound change programmes that are currently not delivering.”

Billions have been wasted on large-scale defence programmes rather than services that work for the people who rely on them. Take Ajax, the Army’s much-criticised £5bn armoured fighting vehicle programme, or the persistent issues around the poor quality of much military housing. What’s needed is radical transformation – designed and implemented with both consideration and momentum. This means services over programmes. Intent over endless iteration. Digital transformation that isn’t merely software-led.

We look forward to seeing how the Strategic Defence Review in May will address this increased spending – how it plans to operationalise its recommendations and manage the wider impact across government, particularly on international aid.