Defence boost derails aid boost pledged in manifesto as Dodds dealt major blow

Keir Starmer has announced a boost to defence spending to 2.5% by 2027, with a “clear ambition” to reach 3% in the next Parliament – funded through controversial cuts to the foreign aid budget that risk derailing a manifesto pledge.

Announcing the “biggest sustained increase in defence spending since the end of the Cold War”, the Prime Minister said the move would see an extra £13.4bn spent on defence each year from 2027.

The increase will be funded by a cut in Britain’s foreign aid budget, from 0.5% to 0.3% in 2027.

Labour’s manifesto said the party was “committed to restoring development spending at the level of 0.7% of gross national income as soon as fiscal circumstances allow” – but the cut makes the prospect of that happening any time look increasingly slim.

It also marks a further significant blow for former party chair Anneliese Dodds, first demoted by Starmer as shadow Chancellor and then not given a Cabinet post, though she still attends.

It comes after Labour also notably decided not to re-establish a international development department after coming into power, as Tony Blair did in the 1990s and Harold Wilson in the 1960s.

Starmer said the cut was an announcement he was “not happy to make” but said “at times like this, the defence and security of the British people must always come first”.

He said: “I want to be clear that is not an announcement I am happy to make. I am proud of our record on overseas development, and we will continue to play a key humanitarian role in Sudan, in Ukraine and in Gaza, tackling climate change, supporting multi-national efforts on global health and challenges like vaccination.

“But nonetheless, it remains a cut, and I will not pretend otherwise. We will do everything we can to return to a world where that is not the case and rebuild a capability on development.

“But at times like this, the defence and security of the British people must always come first.”

The announcement came as the Prime Minister prepares to head to the United States to meet President Trump for the first time since he returned to the White House, amid a growing shift from his administration away from the US’ commitment to European defence and security.

For more from LabourList, subscribe to our daily newsletter roundup of all things Labour – and follow us on  Bluesky, WhatsApp, Threads, X or Facebook .

• SHARE: If you have anything to share that we should be looking into or publishing about this story – or any other topic involving Labour– contact us (strictly anonymously if you wish) at [email protected].
• SUBSCRIBE: Sign up to LabourList’s morning email here for the best briefing on everything Labour, every weekday morning.
• DONATE: If you value our work, please chip in a few pounds a week and become one of our supporters, helping sustain and expand our coverage.
• PARTNER: If you or your organisation might be interested in partnering with us on sponsored events or projects, email [email protected].
• ADVERTISE: If your organisation would like to advertise or run sponsored pieces on LabourList‘s daily newsletter or website, contact our exclusive ad partners Total Politics at [email protected].