Defence: Finance
The question
To ask the Chancellor of the Exchequer, with reference to the Government press release entitled Government and business put forward "Team UK" approach to unleash defence sector's potential, published on 7 July 2025, how much in cash terms of the stated increase of defence spending to 2.6% is accounted for by (a) reductions in Official Development Assistance spend and (b) the addition of the single intelligence account to the defence budget.
Answered by Darren Jones
The Chancellor’s Spring Statement 2025, table 2.1, outlines the changes to defence and Official Development Assistance (ODA) spending that will see NATO qualifying core defence spending increase to 2.5% GDP by 2027.
CP1298 – Spring Statement 2025
The Single Intelligence Account (SIA) budget is not being added to the Ministry of Defence (MOD) budget, but, in line with our allies, will be considered fully NATO qualifying defence spending by 2027. The inclusion of SIA will increase defence spending by around 0.1% in 2027, meaning that NATO qualifying defence expenditure will reach 2.6% GDP in 2027. Full details of the SIA budget over the Spending Review period can be found here:
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