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Increased Defence Spending Will Boost UK Economy, New Secretary Says

July 22, 2026 · The Guardian

Wes Streeting says spending more on the military will create jobs and growth across the country.

The UK's new Defence Secretary, Wes Streeting, gave a speech at the Farnborough airshow and said that spending more money on the military would make a huge difference to the country's economy. He said the military would be the top spending priority for Prime Minister Andy Burnham's new government. Streeting explained that putting more money into defence means less money for other parts of the government. He still believes it is the right choice for the country.

Prime Minister Andy Burnham has promised to raise UK defence spending from 2.6% of the country's total economic output — called GDP — to 3.5% by 2035. That would mean more than £25 billion in extra defence spending over the next ten years. In a video played before Streeting's speech, Burnham said military spending would help bring factories and industry back to the UK. He said the investment would 'transform people's lives.'

The UK last spent 3.5% of its GDP on defence in the early 1990s, shortly after the Cold War ended. Since then, Russia's actions in Europe, concerns about China, and pressure from the United States have pushed NATO countries to spend more on their militaries. NATO is a group of countries, including the UK and the US, that have agreed to defend one another. The UK is now being asked to do more to meet NATO's spending goals.

Burnham made a surprising choice for his Chancellor, the person who manages the country's money. He picked John Healey, a former defence secretary who had quit the previous government because he felt not enough was being spent on defence. Healey's new role suggests that defence spending will be a very high priority for the government's finances. This is a big change for the Labour Party, which has traditionally focused spending on health and education.

Streeting was careful not to make promises about exact future spending numbers. He said it was not his job to write the Chancellor's budget, but that both he and Healey clearly support more defence investment. The government has been cautious with details, but keeps saying defence is a top priority. Streeting told a large crowd at Farnborough, 'What an opportunity we have under this prime minister and this chancellor.'

At the airshow, Streeting unveiled the UK's first 'loyal wingman' drone, built by a company called BAE Systems in Warton, Lancashire. This small jet-like aircraft costs about £15 million and is designed to fly alongside a larger fighter jet called a Typhoon. It helps gather information and increases military strength in the air. It is seen as an important new piece of British military technology.

Not everyone agrees that defence spending is the best way to help the economy. Some experts say that spending on roads or health care creates more jobs for every pound spent. One research group said that cuts to other projects to pay for defence could cost the UK around 10,000 jobs. These arguments mean the government will face tough questions as it decides how to use its money.

Streeting was asked about a private message in which he said Israel was 'committing war crimes before our eyes' in Gaza. He said he stood by those words. He strongly supports Israel's right to defend itself, but believes Israel has gone too far in both Gaza and the West Bank. He said Israel should be held to the same standards as any other ally.

Streeting admitted that waiting to find out if he would get the defence job was very stressful. He said his worry grew every time another politician was called to meet the Prime Minister on Monday. He was finally appointed late that night, just before 11 p.m. He replaced Dan Jarvis, who had only held the role for less than six weeks.

"We are going to honour our commitments on defence and use that investment to transform people's lives."

Comprehension quiz preview

1. Where did Wes Streeting give his speech about defence spending?

  • AThe Houses of Parliament
  • BA NATO summit in Brussels
  • CThe Farnborough airshow
  • D10 Downing Street

2. What does the word 'GDP' mean in this article?

  • AA type of military drone
  • BThe total value of a country's economic output
  • CA government spending plan
  • DA NATO defence agreement

3. Why do you think the government chose John Healey as Chancellor?

  • ABecause he had never been involved in defence before
  • BBecause he wanted to cut defence spending
  • CBecause his strong support for defence spending matched the government's priorities
  • DBecause he was the most experienced economist in the Labour Party

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