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UK Defence Spending May Reach £17.3 Billion by 2029

2/16/2026

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Story summary
  • The Office for Budget Responsibility estimates that 3% of GDP defence spending could cost £17.3 billion annually by 2029-30.
  • The Institute for Fiscal Studies says the figure might be lower, around £13–14 billion.
  • Currently, the UK spends about 2.3% of GDP on defence.
  • In Munich, Sir Keir Starmer, Labour leader, urged higher defence spending to counter Russia.
  • Treasury sources deny resistance to a 3% plan and say funding discussions continue.