Millions of Britons are bracing for further tax rises as the government looks to ramp up defence spending, insiders warn.
The extra cash is earmarked for weapons, cyber defences, and NATO commitments, as global tensions continue to escalate.
Paul Johnson, former director of the Institute for Fiscal Studies, cautioned, “It is very likely taxes will rise again ahead of the next general election to fund defence spending. Households should be prepared for another squeeze.”
A senior government source said, “Our armed forces need sustained investment to meet current and future threats.
“This will require difficult choices, and taxpayers will inevitably contribute more to ensure the UK remains secure.”
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The Prime Minister said, “Over the weekend, I was making the argument at the Munich Security Conference that we, the UK and Europe, need to step up when it comes to defence and security.
“We have a threat of Russian aggression, in a few days time it’s the four-year anniversary of the start of the conflict in Ukraine.
“We want a just and lasting peace, but that will not extinguish the Russian threat, and we need to be alert to that, because that’s going to affect every single person in this room, every single person in this country, so we need to step up.
“That means on defence spending, we need to go faster.”
Economists warn that families and businesses will feel the pinch. One analyst said, “This is a tax hit at a time when people are already struggling with high living costs.”
Opposition MPs blasted the plan as a “blunt approach” that risks punishing ordinary families while leaving defence inefficiencies unchecked.”
A Labour spokesperson added, “Raising taxes to fund weapons is the wrong way to protect the UK. Efficiency in the Ministry of Defence should come first.”
The Treasury has not confirmed which taxes may rise, but experts suggest higher earners and corporations could bear the brunt. With inflation, interest rates, and household costs already high, the plan is likely to spark fierce debate ahead of the next general election.
Johnson insisted that if the government is going to ramp up defence spending to 3% of GDP by 2029, this could mean “really bug cuts” in public spending.
He told Times Radio, “That is clearly not going to happen a year or two before an election,” as the UK has been hit with the largest tax burden since 1948.
Johnson added, “So there are only two ways this can happen.
“One is that they play even faster and looser with their fiscal rules and borrowing more than they otherwise would have done, or they increase taxes.
“We might get lucky, there might be more money knocking around in a couple of years’ time than we currently expect.
“But on current forecasts, I think this probably just means higher taxes than currently planned.”
Defence chiefs say the shift reflects a more dangerous global climate, including the war in Ukraine, growing geopolitical rivalry, and pressure on NATO allies to contribute more. The UK currently spends just above 2% of GDP on defence, but there are calls to raise that figure significantly.
However, critics warn that framing the situation as “preparing for war” risks inflaming public anxiety. Opposition figures argue that any increase in defence spending must be matched with clear fiscal planning and transparency, rather than sudden tax shocks for households already dealing with high living costs.
While ministers insist the UK is not on the brink of conflict, they argue that preparedness is essential in an unstable world. The debate now centres on a key question: how much are voters willing to pay for long-term national security?
