LONDON - The United Kingdom will reduce its foreign aid budget from 0.5% to 0.3% of GDP to help fund an increase in defense spending to 2.5% of GDP by 2027, Prime Minister Keir Starmer announced on February 25, 2025.

The defense spending increase will generate approximately £6 billion ($7.6 billion) in real-terms additional funding by 2027, according to Defense Secretary John Healey [1]. This represents a significant shift in UK fiscal priorities amid growing security concerns.

"Putin's aggression does not stop in Ukraine," Starmer said in his announcement. "Russian spy ships menace our waters. Russian planes enter our airspace. Russian cyber-attacks hit our NHS." [1]

The aid reduction has drawn sharp criticism from humanitarian organizations. Nigel Harris, CEO of Christian aid agency Tearfund, called the decision "appalling" and warned it would impact vulnerable communities worldwide [1].

Foreign Secretary David Lammy indicated that despite the cuts, key humanitarian projects in Ukraine, Gaza and Sudan would be protected [3]. The government maintains it aims to return to higher aid spending levels when "fiscal conditions allow."

The timing of the announcement precedes Starmer's scheduled meeting with U.S. President Donald Trump in Washington DC [2]. While Healey insisted the decision wasn't solely due to U.S. pressure, he acknowledged Trump's recent "direct challenge" regarding European defense spending [3].

The move aligns with similar increases in defense spending being considered by other European nations, including France and Germany, though specific implementation plans remain unclear [2].