UK vows defense spending will hit 3% of GDP by 2030

Key Points:

• The U.K. government has set a target to increase defense spending to 3% of GDP by 2030, with a commitment to reach 3.5% by 2035 as part of its NATO obligations.
• Finance Minister John Healey announced an additional £10 billion ($13.3 billion) in economic and military aid for Ukraine, including £500 million in urgent winter military funding, signaling strong support against Russia.
• Details on how the defense spending targets will be met will be provided in next year’s spending review, with a focus on fiscal sustainability amid strained public finances and rising borrowing costs.
• The National Wealth Fund and British Business Bank plan to invest up to £5 billion over four years to bolster the UK defense industrial base, dual-use technologies, and national security sectors.
• Rolls-Royce will receive £2.5 billion in government-backed investment to develop next-generation turbine engine technology, supporting the UK’s defense industry and technological innovation.