Defence: 2.5% GDP Spending Commitment

Baroness Smith of Newnham Excerpts

Tuesday 17th December 2024 Lords Chamber

[Lord Coaker (Lab)]

I thank the noble Baroness for her Question. Of course, I always discuss with the Treasury questions asked by noble Lords and Baronesses. The position remains exactly the same. The defence review will be published, it will lay out the threats we face, and at a future fiscal event the Government will then determine the pathway to spending 2.5%. This is our real commitment.

[Baroness Smith of Newnham (LD)]

My Lords, there is a suggestion that NATO, at its summit in The Hague next June, is going to look at a 3% target. Are His Majesty’s Government willing to think about this? If not, are they going to reject what might seem a very necessary change in the light of the global situation?

[Lord Coaker (Lab)]

I thank the noble Baroness for her question. We have been very clear about NATO. Irrespective of the outcome of the American presidential election, European countries would have had to spend more on defence. As a first step towards that, all NATO countries need to meet the 2% target, which 23 out of 32 currently do. Our next step is to reach 2.5% and to set a pathway towards that. That will result in billions of pounds of this country’s money, as well as multi-billions of pounds across Europe, being spent on defence. That is the first step we need to take.