UK Targets 3% Defense Spending by 2030, Pledges $13.3 Billion for Ukraine

The U.K. set a 2030 deadline to raise defense spending to 3% of gross domestic product and announced $13.3 billion in additional economic and military aid for Ukraine, alongside plans for investment in its defense industry.

Chancellor John Healey announced the target Wednesday. The Ukraine package will use loans and export finance guarantees. Healey also announced urgent military funding for this winter.

“Britain will stand with Ukraine for as long as it takes,” Healey said.

The government reaffirmed its commitment to spend 3.5% of GDP on defense by 2035 under its NATO pledge. A spending review next year will detail how the U.K. plans to meet its defense targets. Healey said the government had begun work on a fiscally sustainable path.

The National Wealth Fund and British Business Bank will deploy funding over the next four years for defense, dual-use technologies and other areas tied to national security. The program is designed to expand domestic defense production, reinforce local supplier networks and draw private capital into security-related projects.

Rolls-Royce will develop next-generation turbine engine technology with the U.K. government in an investment worth £2.5 billion.