Rachel Reeves played down the prospects of ramping up defence spending today despite mounting pressure from Donald Trump.
The Chancellor stressed that Labour had only committed to hitting 2.5 per cent of GDP in the current Parliament.
And she suggested the 'ambition' after 2029 remains to reach a level of 3 per cent - even though Nato states are being asked to agree a target of 3.5 per cent at a summit later this month.
The blueprint being pushed by Mr Trump and the military alliance's secretary general Mark Rutte would see countries pledge to hit the higher spending by the early 2030s.
A further 1.5 per cent of GDP would be required for 'defence-related expenditure'. A timetable could be set for gradually increasing their allocations.
