Brings forward defense spending target, pledging billions to Ukraine

The UK set a timeline for stepping up defense spending, aiming for 3% of GDP by 2030 while reaffirming the NATO target of 3.5% by 2035. Finance minister John Healey, presenting his first annual budget after resigning as defense minister under the previous government, said the plan sends a “clear message to Moscow.” He announced an additional £10 billion ($13.3 billion) for economic and military support to Ukraine, including £500 million in urgent winter military funding, funded through loans and export finance guarantees. Healey also outlined up to £5 billion for defense and dual-use investments, plus a £2.5 billion partnership with Rolls-Royce to develop next-generation turbine technology. The government will detail the path to meet spending targets in a spending review next year amid strained public finances. U.K. defense officials are also looking to deploy up to £5 billion over four years via the National Wealth Fund and British Business Bank to strengthen the defense industrial base and attract private capital.