UK defence leadership declines to back 3% spending target by 2030

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Highlights

Defence minister Streeting declines to commit to raising UK military spending to 3% of GDP by 2030, reaffirming only the 3.5% target by 2035.
The UK government will review joining the Defence, Security and Resilience Bank financing scheme as a complement to the Multilateral Defence Mechanism partnered with Finland and the Netherlands.
BAE Systems unveiled a full-scale model of the Brontanax fighter drone at Farnborough, aiming for a first flight in 2027 and potential service entry by 2030.

Spending stance and financing priorities

As reported by Financial Times, Streeting says he will not commit the UK to raising defence spending to 3% of national income by 2030, arguing that setting the chancellor’s budget is not his role. Speaking at the Farnborough International Airshow on Wednesday, he says he does not want defence to operate "on the cheap" and will make the strongest possible case to the Treasury for greater investment.

He reiterates the government’s commitment to increase military spending to 3.5% of economic output by 2035 in line with Nato targets. The debate has intensified after John Healey, now chancellor, resigned as defence secretary in the previous government after warning that the existing plan, which takes spending to 2.7% of GDP by 2030, was not enough to keep the country safe.

Streeting also identifies an early priority in reviewing whether the UK should join the Defence, Security and Resilience Bank financing scheme. He says that initiative could be complementary to the Multilateral Defence Mechanism, a rival lender previously backed by the former government alongside Finland and the Netherlands.

Industrial strategy, Gaza remarks and drone programme

Streeting says he was chosen to lead the Ministry of Defence because of his record as a moderniser and reformer, and he stresses that additional defence money must be spent more effectively. He says the government needs to show it is using existing resources wisely, improving productivity and procurement, and generating returns alongside the proceeds of growth.

He also criticises Israel’s conduct in Gaza, saying the country has fallen short of the military standards Britain applies to itself and its allies, while still backing Israel’s right to defend itself. Asked whether Britain should buy Israeli weapons, he says such decisions are not his alone.

At the airshow, Streeting unveils a full-scale model of BAE Systems' fighter drone, Brontanax, describing it as a significant moment for UK defence and re-industrialisation. The drone is set to become the UK’s operational concept demonstrator and is due to fly in 2027, while BAE Systems says the aircraft, developed with the Royal Air Force and already assembled at Warton in north-west England, could enter service by 2030.

In our earlier article on Germany’s plan to boost state backing for defence technology start-ups, we covered proposals for direct investment via development bank KfW and a new investment vehicle to help scale military and dual-use innovation. We also noted a wider policy package aimed at speeding up procurement access, export-licence reviews and business formation, as Berlin ties rearmament spending to long-term domestic industrial capacity and growth.

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