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Defence: Finance

Asked by Ms Diane AbbottLabourTreasuryTabled Answered 10 June 2025UIN 56144

The question

To ask the Chancellor of the Exchequer, how much funding has been transferred from the international aid to the defence budget in cash terms.

Answered by Darren Jones

In February this year, the Prime Minister announced that NATO qualifying defence spending will increase to 2.5% GDP by 2027-28. It will be fully funded by reducing Official Development Assistance (ODA) from 0.5% to 0.3% GNI by the same year. Further details of cash terms savings from reducing ODA can be found in the Spring Statement 2025 document here:

CP1298 – Spring Statement 2025

Individual departmental budgets will be confirmed at the conclusion of the spending review on 11 June.

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