Defence Spending Explained
What do we mean by defence spending?
Defence spending refers to the financial resources allocated by a nation to support its military and all the services needed to defend the country (weapons production, research and development)
Why is it in the news now?
On 11th June, the defence secretary, John Healey, resigned because he felt the government had made promises on defence spending that hadn’t been delivered. In a letter that was a pivotal moment leading up to Starmer’s resignation, Healey accused the government of failing to ‘commit the resources that the nation needs to defend the country at this time of rising threats’.
So what are the UK spending on defence and how does it compare?
In 2025, The UK spent 2.31% of its GDP on defence- so for every £100 generated by the UK economy, £2.31 of that goes on defence. Now that may sound like quite a lot considering we are not directly involved in any wars, but with increasing global tensions, many countries are choosing to ramp up their defence spending rapidly. In 2025, the UK ranked 26th out of 32 NATO countries on how much they had increased their defence spending compared to the previous year. Healey’s resignation, alongside the resignation of Al Carns (former Armed forces Minister) put increasing pressure on new Prime minster Andy Burnham to address concerns.
What’s going to happen with it going forward?
Following Keir Starmer’s resignation, his successor, Andy Burnham, faced some difficult questions. Former Defence Secretary John Healey’s appointment as chancellor is likely a positive sign for those who want to see defence spending increased. Finding the funds, however, may possible tax increases or welfare cuts, meaning Burnham’s honeymoon period in Downing Street may not last long.
22 July, 2026
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