UK to boost defence spending by £36bn yearly by 2035, risking tax hikes or public service cuts.

The UK faces a £36 billion annual increase in defence spending to meet NATO’s 3.5% GDP target by 2035, according to the IFS, requiring either major tax hikes or deep cuts to public services like policing, courts, and prisons. This shift ends decades of declining military spending and reflects growing global threats, though the UK’s 10-year timeline lags behind countries like Poland. The move could raise income tax by 3-4p or VAT to 24%, with Chancellor Rachel Reeves needing to find £30bn in the November Budget amid rising costs and falling fuel duty revenue. Defence advocates say national security demands tough choices, noting the sector supports one in 60 UK jobs and contributes over £31bn annually to the economy.