𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

Labour needs to find more than £800 billion by 2040 to meet new NATO spending targets pushed by Donald Trump, worrying new analysis shows. The Conservatives have accused Chancellor Rachel Reeves of “prioritising welfare over defence” in last month’s Budget as pressure grows on the Government to boost defence and unveil behind-schedule spending plans.

The UK, along with other NATO allies, has agreed to hike defence spending to 3.5% of GDP by 2035, with a further 1.5% going towards resilience and security. The move, announced in June, followed pressure from Mr Trump and also alliance chief Mark Rutte who warned allies must begin investing or start learning Russian. Assessments from consulting firm EY Parthenon warns several UK defence projects, including the construction of new barracks, munitions factories and spending on naval hubs, are yet to have been allocated funding.

The Government will need to mobilise a cumulative £804 billion by 2040 to pay for the plans while hitting the 5% goal, according to the Financial Times which first reported the story.

Shadow Defence Secretary James Cartlidge said the findings “lay bare the gaping chasm between Labour’s rhetoric on defence spending and the reality”.

He told The Telegraph: “[The] defence investment plan is months late and Rachel Reeves chose to prioritise welfare over defence at the autumn Budget.

“Labour aren’t even able to say what year they will hit 3 per cent on defence – let alone how they’ll pay for it.”

He also accused Sir Keir Starmer’s government of “ducking the big choices and putting rearmament on hold”.

Labour has committed to spending 2.5% of national income on defence by 2027.

The Government has faced calls to go further amid rising fears over the threat posed by Russia.

The report by EY Parthenon is said to be based on analysis of more than 1,000 UK capital projects scheduled to start or be finished by 2040.

A Treasury spokesman told the FT: “At the Budget, the Chancellor protected additional capital spending worth over £120bn compared to the previous government’s spending plans and previously changed the fiscal rules so we can invest in our long-term future, alongside the private sector.

“We have already provided additional funding of £5bn for defence in 2025-26 and our ambition is to spend 3 per cent of GDP on defence next parliament when economic and fiscal conditions allow.”