Starmer’s options in funding a further defence spending rise would be limited

The Guardian - World NewsEN 4 min read 100% complete by Phillip InmanFebruary 16, 2026 at 06:21 PM

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long article 4 min

Keir Starmer has advocated for increased UK defence spending to counter the threat from Russia, potentially reaching 3% of GDP by 2029. This could mean an increase of up to £14bn annually. However, funding this increase presents challenges due to existing Treasury borrowing limits aimed at reducing the national deficit. Chancellor Rachel Reeves has already set tight spending limits until the next general election, relying on economic growth to alleviate pressure. While falling gilt yields offer some potential savings, the Office for Budget Responsibility is taking a cautious approach to forecasting, and Labour backbenchers have other spending priorities such as healthcare. The feasibility of Starmer's plan hinges on navigating these financial constraints and competing demands.