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NATO’s new defence spending target of 3.5% of GDP
Rt Hon Tobias EllwoodJun 10, 20251 min read

NATO Summit & The UK’s Defence Challenge: A Closer Look

The Strategic Defence Review (SDR) has finally been released—and it doesn’t mince words. It tells the British people what many of us have seen coming: our world is fragmenting, the global order is in decline, and the character of conflict is changing rapidly.

From a digital perspective, the threats we face are no longer distant; they’re already at our gates. Growing and intensifying, these challenges are right here in Britain and just off our shores. There is a lot of work ahead if we are to stay safe.

However, what the SDR doesn’t do—because it wasn’t tasked to—is explain the how. Specifically:

  • How will the 62 key recommendations actually be paid for?

  • How will they be implemented in practice?

  • How do we create a tactical nuclear deterrent?
  • How do we build two fully operational Army divisions?
  • How do we make our Navy and Air Force more autonomous?

These crucial details are expected in the forthcoming Spending Review and the Ministry of Defence’s Equipment Plan, anticipated this autumn.

But before that, there’s an important moment next week: NATO members will gather in The Hague for a pivotal summit. Mark Rutte, the NATO Secretary General, will challenge all members to raise defence spending to 5% of GDP—3.5% for core defence spending, plus 1.5% for broader security infrastructure.

He will make it clear that NATO must ramp up readiness and capability within the next 5–10 years to meet the challenge posed by Russia’s military resurgence.

At present, the UK has committed to increasing defence spending to 2.5% by 2027, and to 3% at some point in the next Parliament. These are significant steps, but they still fall short of the new NATO target.

This is a difficult circle to square. The UK and NATO’s independently produced SDR are saying the same thing: threats are growing, and our defence posture must evolve. But this evolution requires funding. If the Government doesn’t find the money, and our vulnerabilities are exploited, the impact on our economy—and all areas of government spending—will be severe.

It’s time to start the move towards NATO’s new defence spending target of 3.5% of GDP. Let’s see if the Government does the right thing.

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