PM’s Washington trip clear impetus for abrupt news of budget switch to meet defence commitment by 2027

Before Keir Starmer’s meeting with Donald Trump on Thursday, the prime minister thought it necessary to offer the president a gift. Britain’s defence spending will increase by 0.17 percentage points to 2.5% of GDP by April 2027, he told MPs in a hastily arranged Commons statement. The money, he added, would be taken directly from the overseas aid budget, whose level will be cut by nearly half to 0.3%.

The last measure is a remarkable turn for a Labour government. Uncomfortably, it comes at a time when Donald Trump wants to shut down perhaps the entire $40bn US aid budget – and at a stroke eliminates a signature commitment from the Blair-Brown years. It was back in 2004, when Tony Blair was prime minister, that Labour first committed to increasing aid spending to 0.7% of GDP.

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