UK Chancellor: Plans to Raise Defense Budget to 3.5% to Be Announced Next Year
John Hiley announces plans to raise the defense budget to 3.5% of GDP alongside support packages for families and employees
Translated by Qiyas from كونا — Original source
London, October 28 (KUNA) -- British Chancellor of the Exchequer Rachel Reeves said on Wednesday that her country is committed to raising defense spending to 2.5 percent of GDP, confirming that details on how to achieve this will be unveiled during the security and defense review scheduled for next year. Reeves announced before MPs in the House of Commons (the lower house of Parliament), while presenting the details of the state budget, the launch of a new task force to explore all possible means to ensure increased defense funding and to meet the government’s commitments. She noted that the current defense budget has increased by £14 billion ($18.6 billion) compared to the 2023-2024 fiscal year, adding that the government is also working to boost private investment in defense, including through public-private partnerships.
In parallel, the state budget presented today included a wide range of measures aimed at mitigating the impacts of the cost-of-living crisis and rising prices of essential goods and services, particularly energy and fuel. In this regard, Reeves confirmed that 20 million households will receive a direct payment of £100 (approximately $133) in the coming weeks to help lower energy bills, and that the freeze on car and electricity duty will be maintained until next July.
She indicated that 2.3 million employees will receive a pay increase of approximately 3.9 percent, while pensioners will be exempt from paying tax on any additional income they earn, provided it is equal to or less than the value of their pension. Reeves also pointed to the government’s decision not to reduce the value of tax-free individual savings, keeping it at £20,000 ($26.57 thousand), while raising the minimum threshold for the business rate relief for small enterprises in the retail, hospitality, and leisure sectors from £12,000 (approximately $16,000) to £18,000 (approximately $24,000), thereby exempting around 70,000 small businesses from these charges.
On another note, she revealed the allocation of £430 million ($571.3 million) to tackle homelessness, but warned that the government would have to pay an additional £14 billion ($18.6 billion) in debt interest. (End) M.R.N. / M.A.A.
