Ed Davey backs rapid boost to defence spending after Trump "betrayal" of Ukraine

EMBARGO: Immediate Release

• Lib Dems set out plan for UK defence spending to hit 2.5% of GDP as soon as possible - and propose cross-party talks on further increases, including looking at 3% of GDP
• The Lib Dems have long called for the 10,000 troop cut under the Conservatives to be reversed.

Liberal Democrat Leader Ed Davey has urged the Prime Minister to rapidly increase defence spending, aiming to hit 2.5% of GDP on defence as soon as possible, following what he called Donald Trump's "betrayal" of Ukraine, the UK and its allies.

Ed Davey called on the Prime Minister to adopt the party’s plans, and hold talks to establish a consensus across the political divide on how to further increase defence spending beyond 2.5% of GDP. 

The Liberal Democrats have pointed to raising the Digital Services Tax on tech giants as a potential source for the required revenue. The Lib Dems have also suggested one of the ways to increase funds for defence could be to establish a Rearmament Bank, led by the UK and other like-minded European NATO allies, to allow them to increase defence spending further and faster by raising additional private capital.

The party has also been calling on the Government to provide Ukraine with a significant boost in support by seizing frozen Russian assets and repurposing them to Ukraine. Combined together, Russian assets frozen by UK and European countries could provide Ukraine with a rescue package of over £40 billion worth of support.

The intervention comes following the conclusion of US-Russia initial talks on Ukraine in Saudi Arabia, and ahead of Keir Starmer’s visit to Washington next week. 

Liberal Democrat Leader Ed Davey commented: 

“Donald Trump's stitch-up with Putin amounts to a betrayal of Ukraine, the UK and all our allies. It is clear: we are living in a new and dangerous world. We must respond.

“To ensure that Great Britain is protected against Russia and able to provide the leadership which our continent needs in the absence of the US, we must increase defence spending to 2.5% of GDP as soon as possible.

“But given the severity of the threats we now face, we should not stop there. Politicians should get around the table and create a consensus on how to go further.

“We simply cannot afford not to do this. Our national security is at stake. The question is not whether we take this step now: it is what happens if we do not. 

“The UK needs to make a clear stand for allies in Ukraine and across Eastern Europe, for democracy and for our security - against an emboldened Vladimir Putin.”

ENDS

Notes to Editors:

The Liberal Democrats have proposed increasing defence spending by increasing the rate of Digital Services Tax from 2% to 10%. This would provide an extra £3.3 billion for defence spending in 2025-26, rising to £4.5 billion a year by 2029-30.

The idea of a rearmament bank was floated in mid-January by Britain's former defence chief General Nick Carter, former European Bank for Reconstruction and Development Executive Committee member Guy de Selliers, and Senior Adviser at the Center for European Policy Analysis in Washington Edward Lucas. Such a bank would be modelled on the European Bank for Reconstruction and Development with initial financing provided by governments, allowing them to then raise more private capital for investment in military hardware.