UNITED KINGDOM

Competing domestic priorities, Treasury borrowing limits and already nervous lenders are among the many obstaclesKeir Starmer has few options if he wants to increase annual defence spending by up to £14bn before the end of this parliament.In last summer’s spending review, the government set out plans to increase defence spending from 2.3% of national income, or gross domestic product (GDP), in 2024-25 – about £66bn, to 2.6% in 2028-29. Continue reading... Source link : https://www.theguardian.com/politics/2026/feb/16/keir-starmer-limited-options-further-defence-spending-rise Author : Phillip Inman Publish date : 2026-02-16 17:21:00 Copyright for syndicated content belongs to the linked Source.

The government was warned by its lawyers that such a move could be illegalIn his Q&A with journalists, Keir Starmer was also asked to respond to a report by the BBC’s James Landale saying he is looking at plans to raise defence spending to 3% of GDP by the end of this parliament. In the past Starmer has just said that he would like to do this at some point in the next parliament.In his reply, Starmer said that at the Munich Security Conference over the weekend he was arguing that the UK, and Europe as a whole, needs to

Rolling coverage of the latest economic and financial news, as Japan misses growth forecasts for the final three months of 2025UK consumer sentiment continued to sink this month, as households grow more worried about debt levels.A poll of consumer confidence from data firm S&P Global has found that morale continued to drop in February, although not as quickly as in January.Consumers signal stronger rise in debt alongside a quicker deterioration in loan availabilityAppetite for major spending recedes to weakest in ten monthsSentiment regarding labour market conditions at lowest since last June“The mood among UK households matches the dismal weather seen