Chancellor Rachel Reeves has ruled out an immediate increase in defence spending despite pressure from military chiefs warning of a £28bn black hole in the Ministry of Defence budget. Speaking Wednesday, Reeves emphasized that any additional funding would have to wait for future spending reviews, with the next scheduled for spring 2027.

Military leaders have repeatedly highlighted the need for rapid rearmament amid fears of potential conflict with Russia. The Treasury has expressed concerns about wasteful defence spending, while the Chancellor highlighted her achievement in securing the biggest uplift in defence spending since the Cold War. £5bn more is being allocated this year compared to the previous Conservative government.

Reeves confirmed plans to increase defence spending to 2.6% of GDP by April 2025, with Prime Minister Keir Starmer setting a target of 2.5% by April 2027 and an ambition to reach 3% after the next election. The government is exploring innovative financing options including international borrowing and a potential new multilateral defence bank. The decision to delay further increases comes despite pressure from Nato allies and warnings about the renewed threat from Moscow, though Treasury sources maintain their commitment to national security.