The MoD told us that if the government fulfils its commitment to spending 2.5% of Gross Domestic Product (GDP) each year on defence, the Plan could well be affordable.18 The current defence budget is 2.1% of GDP, which increases to 2.25% when the UK’s support for Ukraine is included. The MoD said that the difference between 2.25% and 2.5% of GDP is about £6 billion or £7 billion.19 However, the government will only increase non- Ukraine defence spending to 2.5% of GDP if fiscal and economic c...

The MoD told us that if the government fulfils its commitment to spending 2.5% of Gross Domestic Product (GDP) each year on defence, the Plan could well be affordable.18 The current defence budget is 2.1% of GDP, which increases to 2.25% when the UK’s support for Ukraine is included. The MoD said that the difference between 2.25% and 2.5% of GDP is about £6 billion or £7 billion.19 However, the government will only increase non- Ukraine defence spending to 2.5% of GDP if fiscal and economic circumstances allow, and there is no certainty when or whether this will occur.20 Type: conclusion | Number: 7 | Response status: not_accepted Government response: 1.1 The government disagrees with the Committee’s recommendation. 1.2 The Prime Minister has committed to defence spending reaching 2.5% of GDP in 2030. 1.3 The Ministry of Defence (the department) has already implemented changes to commercial policy to manage inflation and continues to make greater