A strong economy needs a strong national defence. That is why national security is a foundation of our Plan for Change.
At every moment in our national history, when the world has changed to become more dangerous and less secure, Britain has stepped up.
It was the National Government led by Winston Churchill that helped liberate Europe from the Nazis. It was the post-war Labour government that secured the peace by founding Nato. And it was the last Conservative government that stood shoulder-to-shoulder with our allies in response to Russia’s illegal, full-scale invasion of Ukraine.
We are now facing another moment of change. A change that is happening before our eyes. And as the Prime Minister wrote in these pages only last week, the pace of change is such that we are facing a once-in-a-generation moment for the collective security of our Continent.
It is the duty of government – and my duty as Chancellor of the Exchequer – not just to witness change, but to respond to it. To take the right decisions now that are in the national interest: to keep our country safe and to protect working people.
That is why the Prime Minister announced the biggest sustained increase in defence spending since the end of the Cold War. We will deliver on our commitment to spend 2.5 per cent of GDP on defence. And we will go further and faster to meet that commitment, so we reach that level in two years’ time and maintain it for the rest of this Parliament.
This is not just an ambition, but a fully funded commitment paid for by cutting the overseas aid budget. And, subject to economic and fiscal conditions, we will also set a clear ambition for defence spending to rise to 3 per cent of GDP in the next Parliament.
This is a generational moment for our Continent. All of us must step up and do more on defence. That is why over the coming days I will be talking to European counterparts at the G20 in South Africa about the importance of security and defence for our economies, and how we can work together to bolster them.
And it is a generational moment for our economy too. The number one mission of this Government’s Plan for Change is to kickstart economic growth so we can put more pounds in working people’s pockets. That can only come through investment in the jobs, skills and opportunities of the future – including defence.
If we are to protect our borders, then we need to ensure our defence industry is building the equipment and capabilities we need. We need modern capabilities here at home that can also be sold to the world.
So, in the coming months we will publish a new defence industrial strategy to deliver British jobs, skills and innovation. It will be about revitalising our heartlands. It is a chance for government, industry and businesses to step up to the challenge and maximise the full potential that is ahead of us – and the opportunities I know Britain can seize.
The world is changing – but this Labour Government is ready for that change. We are ready to do what it takes to keep our country safe, to show our strength to the world, and to deliver for the British people.
A strong economy needs a strong national defence. That is why national security is a foundation of our Plan for Change.
At every moment in our national history, when the world has changed to become more dangerous and less secure, Britain has stepped up.
It was the National Government led by Winston Churchill that helped liberate Europe from the Nazis. It was the post-war Labour government that secured the peace by founding Nato. And it was the last Conservative government that stood shoulder-to-shoulder with our allies in response to Russia’s illegal, full-scale invasion of Ukraine.
We are now facing another moment of change. A change that is happening before our eyes. And as the Prime Minister wrote in these pages only last week, the pace of change is such that we are facing a once-in-a-generation moment for the collective security of our Continent.
It is the duty of government – and my duty as Chancellor of the Exchequer – not just to witness change, but to respond to it. To take the right decisions now that are in the national interest: to keep our country safe and to protect working people.
That is why the Prime Minister announced the biggest sustained increase in defence spending since the end of the Cold War. We will deliver on our commitment to spend 2.5 per cent of GDP on defence. And we will go further and faster to meet that commitment, so we reach that level in two years’ time and maintain it for the rest of this Parliament.
This is not just an ambition, but a fully funded commitment paid for by cutting the overseas aid budget. And, subject to economic and fiscal conditions, we will also set a clear ambition for defence spending to rise to 3 per cent of GDP in the next Parliament.
This is a generational moment for our Continent. All of us must step up and do more on defence. That is why over the coming days I will be talking to European counterparts at the G20 in South Africa about the importance of security and defence for our economies, and how we can work together to bolster them.
And it is a generational moment for our economy too. The number one mission of this Government’s Plan for Change is to kickstart economic growth so we can put more pounds in working people’s pockets. That can only come through investment in the jobs, skills and opportunities of the future – including defence.
If we are to protect our borders, then we need to ensure our defence industry is building the equipment and capabilities we need. We need modern capabilities here at home that can also be sold to the world.
So, in the coming months we will publish a new defence industrial strategy to deliver British jobs, skills and innovation. It will be about revitalising our heartlands. It is a chance for government, industry and businesses to step up to the challenge and maximise the full potential that is ahead of us – and the opportunities I know Britain can seize.
The world is changing – but this Labour Government is ready for that change. We are ready to do what it takes to keep our country safe, to show our strength to the world, and to deliver for the British people.