UK Defence Spending to Reach 3% of GDP in Next Parliament

Homeland December 19, 2025

The UK government has committed to increasing defence spending to 3% of Gross Domestic Product (GDP) during the next Parliament, according to Defence Secretary John Healey. Speaking in the House of Commons, Mr. Healey confirmed that the UK, along with its NATO allies, has agreed to a new defence spending benchmark of 5% of GDP by 2035. This long-term target is underpinned by a significant short-term funding injection and a clear upward trajectory for the defence budget, signalling substantial opportunities for the UK defence supply chain.

In response to parliamentary questioning, the Defence Secretary outlined the government’s spending plan, which he described as the “largest sustained increase in defence spending since the end of the Cold War.” He confirmed that total defence spending is set to rise from just under £54 billion to over £65 billion this year and next, with an additional £5 billion allocated in the first year of the current government. This accelerated investment will see the UK’s defence spending as a percentage of GDP reach 2.6% by 2027, an earlier date than previously projected.

While no specific financial year was provided for achieving the 3% target, Mr. Healey reiterated that it is a firm ambition for the next Parliament. This commitment provides industry with a clear indication of future government investment priorities, allowing prime contractors and sub-contractors to plan for growth and capability development. The increased funding is directly linked to major policy initiatives, including the Strategic Defence Review and the Defence Industrial Strategy, which together outline the capabilities and industrial capacity the Ministry of Defence seeks to procure and sustain.

The discussion also highlighted the government’s focus on broader security, with references to NATO’s Article 3 obligations concerning national resilience and civil preparedness. This suggests that future procurement opportunities may extend beyond traditional military hardware to include areas critical to national infrastructure and security. The sustained financial commitments and strategic policy direction provide a strong foundation for businesses operating within, or seeking to enter, the UK defence sector, indicating a period of planned growth and heightened demand for industrial partners.

If you would like to join our community and read more articles like this then please click here