Politics · United Kingdom · 2 hrs ago
IMF urges UK to cut spending to fund higher defence budget
The IMF urged the UK to cut other spending rather than rely on higher taxes or borrowing to pay for defence.
The advice concerns Prime Minister Andy Burnham’s government and its plans for the country’s armed forces.
The UK currently spends 2.7% of its gross domestic product on defence, and has committed to reach 3.5% by 2035.
The IMF says the government faces difficult choices between defence and social spending, while raising more tax may be difficult and borrowing cannot fund defence indefinitely.
IMF chief Kristalina Georgieva also said investors are sensitive to UK borrowing costs and urged the country to keep reducing its debt.
The issue matters because the UK must increase defence investment by tens of billions annually to meet the target and satisfy security partners, including the United States.
Ministers have pledged to set out a path to the target in a spending review next year.
The International Monetary Fund has urged the UK to cut spending rather than rely on higher taxes or borrowing to fund increased defence spending.
The IMF said the government faces difficult trade-offs between social spending and defence.
The UK is spending 2.7 per cent of GDP on defence this year and is committed to reaching NATO’s 3.5 per cent target by 2035.
Prime Minister Andy Burnham has said national security cannot come at the expense of social security.
The government has pledged to set out a path towards the target as part of a spending review next year.
- Who
- The International Monetary Fund urged the UK to reduce spending. Prime Minister Andy Burnham is among those facing the funding choices.
- What
- The IMF called for spending cuts to help fund higher defence spending and cautioned against relying on more taxes or borrowing.
- When
- The article was published on 15 October 2026. The UK’s defence spending target is for 2035.
- Where
- The United Kingdom.
- Why
- The UK is committed to raising defence spending to 3.5 per cent of GDP, while the IMF says the government faces difficult trade-offs and persistent debt pressures.
International Monetary Fund
Andy Burnham
Funding higher defence spending
International Monetary Fund
The IMF said less spending would have to be part of the response to new pressures and warned against borrowing more.
Andy Burnham
Burnham has said national security cannot come at the expense of social security.
Labour returned to office, and UK defence spending was 2.3 per cent of GDP.
UK defence spending is 2.7 per cent of GDP.
Labour ministers have pledged to set out a path towards 3.5 per cent as part of a spending review.
The UK is committed to reaching NATO’s defence spending target of 3.5 per cent of GDP.
- UK defence spending this year
- 2.7 per cent of GDP
- NATO defence spending target
- 3.5 per cent of GDP by 2035
- UK defence spending in 2024
- 2.3 per cent of GDP
- Spending review
- Planned for next year
What people are saying
The space for a lot more revenues is not easy. Less spending [will be] part of the new pressures that you will have from different sources.
stay the course
can't come at the expense of social security