British Prime Minister Keir Starmer announced a significant increase in defense spending to 2.5% of GDP by 2027, funded by cuts to foreign aid, as he prepares for crucial talks with U.S. President Donald Trump this week.

The defense budget will increase by £6 billion annually in real terms from 2027 [1][3], marking the largest sustained rise in military spending since the Cold War. The foreign aid budget will be reduced from 0.5% to 0.3% of GDP to help fund this increase.

'Tyrants like Putin only respond to strength,' Starmer said during a Downing Street press conference [3]. 'I believe we must now change our approach to national security so we are ready to meet the challenges of our volatile world.'

While acknowledging Trump's influence, Starmer insisted the decision was 'three years in the making' since Russia's invasion of Ukraine [4]. U.S. Defense Secretary Pete Hegseth called the move a 'strong step' following discussions with his UK counterpart [3].

Foreign Secretary David Lammy confirmed that despite the aid cuts, vital programs in Ukraine, Gaza, and Sudan would be protected [2]. The government plans to return to higher aid spending levels when 'fiscal conditions allow.'

The announcement comes ahead of Starmer's first meeting with Trump at the White House on Thursday, where European security and NATO commitments are expected to dominate discussions [1]. Following his U.S. visit, Starmer will host talks between European leaders this weekend to discuss regional security coordination [3].