Starmer calls for ‘moment to unite’ as Nato agrees defence pledge
Keir Starmer said the latest Nato summit represented a “moment to unite” as 32 member countries committed to ramp up spending on defence to 3.5 per cent by 2035, with a further 1.5 per cent allocated towards security and infrastructure.
The Prime Minister said investment will go towards cyber security and protecting key infrastructure while the UK’s nuclear weapons would be upgraded to strengthen its defence capabilities.
In his speech in the Hague, Starmer confirmed the government would purchase 12 fighter jets capable of dropping nuclear bombs, each costing about £80m.
It will be the first time in 27 years since the UK owned aircraft carrying nuclear warheads, with purchases from the US to be made in the next procurement batch.
The government said on Tuesday night that the jets would be based at an RAF base in Norfolk, with each aircraft able to carry B61 bombs.
A statement by the Ministry of Defence last night revealed defence firms would play a “vital role” in the supply of weapons.
Major defence companies including BAE Systems, Honeywell, Rolls Royce, QinetiQ and Leonardo UK were highlighted as potential contributors to the UK’s military upgrade.
Starmer also confirmed some 350 air defence missiles would be delivered to Ukraine, funded by £70m of interest raised on frozen Russian assets.
Defence spending divisions
A Nato statement published after the summit appeared to avoid referring to Russia as an aggressor in its full-scale invasion of Ukraine as it said the country would continue to receive support from allies.
“Allies reaffirm their enduring sovereign commitments to provide support to Ukraine, whose security contributes to ours, and, to this end, will include direct contributions towards Ukraine’s defence and its defence industry when calculating Allies’ defence spending,” the statement read.
Starmer said the summit declaration sent a “decisive message to aggressors”, adding that there remained a desire for Ukraine and Russia to agree to an “unconditional ceasefire”.
Nato secretary general Mark Rutte claimed President Putin remained untrustworthy and called for member countries to “not be naive” about Russia, adding that Ukraine were on an “irreversible” path to joining Nato.
“We know that there is this Russia threat, short term, long term, whatever, but the Russia threat is there, and we have to make sure that we can defend ourselves, and that is why we are doing this.”
Earlier in the day, Rutte referred to President Trump as “daddy” as he thanked the US president for urging Nato allies to spend more on defence.
“He is a good friend, and when he is doing stuff, which is forcing us… when it comes to making more investments, would that have been the result of this summit if he would have not been re-elected president?” Rutte said.
Defence watchers were worried Spanish Prime Minister Pedro Sanchez would push against Nato’s new collective spending pledge, claiming that its current expenditure reaching two per cent of total GDP was “sufficient” and “compatible with the welfare state”.
His position appears to contrast that of German Chancellor Olaf Scholz, who has rewritten fiscal rules to allow defence spending to surge to 2.8 per cent of its GDP in 2026, up from 2.1 per cent in 2024.
Details on Germany’s budgets for the next two years are set to be finalised by the end of 2026.
City analysts are closely watching how Germany’s fiscal package might move the Bund yield, which can have knock-on effects for the UK’s long-term gilts and increase the cost of borrowing for Chancellor Reeves.
Capital Economics’ Andrew Kenningham separately warned that Nato’s new commitment could put several countries’ public debt at risk of deteriorating.
“If it is implemented in full and funded through borrowing, the target for NATO members to raise defence spending to 3.5 per cent of GDP by 2035 could push debt burdens up by 10 per cent of GDP or more over the next decade,” Kenningham said.
“So far only one country – Germany – has set out a clear and credible plan to reach 3.5 per cent.
“Its draft budget, which the cabinet agreed yesterday, envisages defence spending rising from 2.1 per cent last year to 3.5 per cent by 2029.
“In contrast, France was struggling to agree a budget for 2026 even before taking account of the new defence spending goals. And although Italy has committed to reach 2 per cent of GDP this year, its government has sounded equivocal about the 3.5 per cent figure.”