Voters were warned last night to brace for further tax rises after Nato spending demands blew a £40billion hole in Labour's plans.

Voters were warned last night to brace for further tax rises after Nato spending demands blew a £40billion hole in Labour's plans.

Nato secretary-general Mark Rutte warned that the current target of spending 2 per cent of GDP on defence is no longer sustainable after very public criticism from Donald Trump.

Countries such as Germany face finding upwards of $60billion a year more for the military if a mooted increase in the target goes ahead.

Defence Secretary Pete Hegseth delivered the message as he met ministers from the military alliance in Brussels.

Increased spending commitments require higher revenue, economists warn

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’