Starmer Open to Tax Increases to Support Defence Spending Commitment

Sir Keir Starmer has indicated a willingness to consider raising taxes after the next election in order to finance Labour's plan to raise defence spending to 5% of the country's gross domestic product (GDP) by 2035. In contrast, the Prime Minister has reaffirmed Labour's commitment to their manifesto, which explicitly states that they will not impose tax increases on "working people." However, this increase in defence spending won't take place until 2035, and a new manifesto is expected to be unveiled before the general election, which is required by 2029.

When asked about the potential need for tax increases to cover the heightened defence spending, Starmer clarified that every proposal for defence budget increases they have made previously, such as the aim to reach 2.5% in 2027/28, has been accompanied by a detailed financing plan that did not include tax hikes. He reiterated Labour's manifesto commitments regarding tax policies, asserting that they would adhere to those pledges. During the upcoming NATO summit in The Hague, the Prime Minister is expected to announce plans to escalate spending on defence and security to 5% of GDP by 2035.

This increase represents a notable rise from the current 2% target set for NATO members, and it surpasses Labour's previous goal of 2.5% by 2027 and 3% thereafter. The decision comes amidst pressure from U.S. President Donald Trump, who has been vocal about the need for NATO allies to enhance their contributions toward European defence. In anticipation of his visit to the Netherlands, Starmer described this updated spending target as a chance to reinforce the UK's commitment to NATO and to encourage more investment in the country's security and resilience. He emphasized the importance of responding adeptly to the current era of uncertainty to ensure the safety and security of working people.