Last month, Prime Minister Keir Starmer said that military spending would rise to 2.5 percent of gross domestic product by 2027, which would be paid for by cutting overseas aid. On Wednesday, Ms. Reeves reiterated recently announced reductions to the benefits system, alongside a few other changes, that would save about £5 billion by 2030. The changes come as President Trump’s economic policies have disrupted the global economy, putting more demands on the British government’s already stretched budget. Like many other European countries, Britain has pledged to spend more on defense to support Ukraine in its war with Russia. At the same time, the threat of a global trade war is lurking and interest rates have increased, pushing up government borrowing costs.

Source: The Times March 26, 2025 17:57 UTC