Good morning.
On Tuesday, Keir Starmer confirmed that the government will increase defence spending to 2.5% of GDP by 2027, with plans to raise it further to 3% during the next parliament. The announcement marks the biggest increase in defence spending since the end of the cold war, but the even bigger surprise came with the announcement that the additional funding would come directly from the overseas aid budget, which will fall from 0.5% to 0.3% of GDP – a cut of around £6bn.
