UK could face up to £30bn of tax rises to fund defence spending boost, economist says

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Sir Keir Starmer has vowed to boost defence spending to 2.7 per cent of GDP by 2027, as Nato allies push for ‘dramatic increase’

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Rachel Reeves could be forced to raise up to £30bn through tax rises or funding cuts as the chancellor seeks to meet Labour’s pledge to boost defence spending, an economist has claimed.

The government has promised to increase defence spending to 2.5 per cent of GDP by 2027, and has an “ambition” – but no firm commitment – to raise it to 3 per cent in the next parliament, after 2029.