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Fiscal Policy: Defence Spending

That is precisely the reason why the Prime Minister commissioned the strategic defence review within two weeks of coming to office, to assess the changing context that we are facing but also the changing capabilities that we need, as a nation, to keep us safe. That includes retiring old capabilities, especially capabilities that were never planned to go to sea again—a decision made under the last Government. We have already increased defence spending in the Budget—it is up by £2.9 billion—and we will set out a path towards spending 2.5% of GDP on defence in the spring.