British Prime Minister touts push for defense spending and previews US trade talks

England It boosts defence spending to strengthen European security and play its part in negotiating a new trade agreement between the two long-standing allies.

British Prime Minister Rachel Reeves told FOX Business that the UK government’s plan to increase Defense expenditure It is coming as part of an effort to boost the economy and industrialize the regions of the marginalized countries.

“Strong defense and a strong economy are closely linked. I believe it very much. That’s the industrial policy we are pursuing as a government,” Reeves said. “The UK has now had the biggest increase in defence spending since the end of the Cold War.”

The UK government’s plan will spend £2.2 billion on defense between 2025 and 2026, with the GDP ratio increasing to 2.5% by 2025. According to the government’s plan, that figure will increase by 3% in the next assembly. In 2024, the UK spent an estimated 2.33% of its GDP on defense, according to NATO data.

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To gain more value on UK defence spending, Reeves added, the government will “invest in new, innovative, particularly technology-based solutions to improve military equipment using a portion of our defence budget.” She added that the UK is encouraging other European countries to follow suits by strengthening their own defence spending.

“It is absolutely essential for European countries to increase their defense spending and do more to keep the European continent safe in the face of increasing Attack from Russiaand that’s what many countries in Europe do now,” Reeves said. We step up, spend more on defense, use that money to activate, and deny some of the UK that has been left behind for too long. ”

Last year, NATO data showed that 23 of the 32 member states, including Finland and Sweden, the two most recent members of the alliance, met their 2% defence spending commitments. This is the maximum number of NATO members since its inception in 2014 that have met or exceeded that threshold. NATO will release new data on the subject ahead of the annual summit scheduled for late June.

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Reeves will meet with various Trump administration officials this week, including Treasury Secretary Scott Bescent, to negotiate a new trade deal between the two countries following the president. Donald Trump’s Impact customs duties on trading partners, including the UK

The US and the UK began debate over trade agreements in May 2020 months after Britain left the European Union during Trump’s first term, but the deal did not come true at the time or during the former president. Joe Bidens management.

“Trade contracts have been delayed for a long time,” Reeves said. “While there is no closer partnership between the UK and the US, we absolutely recognize and understand concerns about countries operating a sustainable, large trade surplus with the US. The UK is not one of these countries.”

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She said a considerable number of Americans and British citizens work for businesses headquartered in opposition countries, leading to tough economic ties that the prime minister believes will help promote trade transactions.

“One million British people work for American companies and are very proud to do so, and one million Americans work for British companies, so our economy is very closely intertwined. Trade barriers Both methods between our countries are good for the job, good for the industry and ultimately for the consumer,” Reeves said.

“We continue to advance in that area. We are not in a hurry to deal. Of course, as a UK government, we only sign contracts if they are in the interests of our country,” she said. “But I think a transaction should be made.”

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The Prime Minister added, aside from dealing with it. Tariffs and other trade barriersshe sees opportunities for closer technical partnerships between the two countries.

“There’s already a very close defense and security partnership between the UK and the US, so let’s take that to the next stage,” Reeves said. ” Scientific companies It’s absolutely immeasurable in either country, so let’s see how technical partnerships can be created on the same basis as having a security and defense partnership. ”