At the upcoming NATO summit, the UK could be forced to increase defence spending to 3.5% of gross domestic product (GDP) by 2035 to keep the US President Donald Trump in with the alliance.
Defence sources have said that “without a doubt” the UK will be forced to sign up to this by the NATO chief Mark Rutte.
In real terms this will represent £30 billion increase which will no doubt increase taxes for Brits who are already struggling and trying to come to terms with the Chancellor’s crippling tax hikes.
Yesterday the Institute for Fiscal Studies (IFS) said the defence spending increase will lead to more tax rises and cuts in other areas.
Paul Johnson, the director of the IFS told Times Radio, “It really does seem to me that the only choice that is available, if we’re going to go through all of those things, is some really quite chunky tax increases to pay for it.”
On Monday Sir Keir Starmer agreed to increase defence spending from the current 2.3% to 2.5% by 2027 and then by the next parliament it will rise to 3%.
The Prime Minister told the BBC that he will not agree to a “performative fantasy politics” by picking out a date from thin air as to when the UK will meet the target, but NATO wants Britain to go further.
NATO’s Secretary General wants allies to increase their defence spending to 3.5% of GDP and 1.5% on cyber, military infrastructure and intelligence.
Rutte said last week, “I assume that in The Hague we will agree on a high defence spend target of in total 5%.”
He added, “it will be considerably north” of “3% when it comes to the hard spending.”
The authors of the Strategic Defence Review, Lord Robertson, Fiona Hill and Gen Sir Richard Barrons wrote for The Telegraph saying, “This period of unprecedented instability demands enhanced collective security with allies, especially Nato, to sustain deterrence that prevents opponents from considering inflicting harm.
“The US plays a different role in European security, but a modernised ‘NATO-first’ approach is the only effective, affordable option for the UK.”
The Prime Minister’s official spokesman said, “I’m not going to get into the discussions that are ongoing, in the usual way, ahead of (the) NATO (summit).
“The UK is already the third-highest spender in NATO in cash terms behind the United States and Germany, we are one of 22 allies of the 32 in Nato that already exceed the 2% of GDP NATO target.
“But it isn’t just about cash, it’s about contributions to capability that each NATO ally brings.
“Whether it is our nuclear capability, whether it’s our world-class carriers with fifth-generation combat aircraft, our armed forces who are some of the most advanced in the world, the UK has been a leading contributor to Nato and will remain one.”
