The Lib Dems have set out plans 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.

Liberal Democrat Defence Spokesperson Helen Maguire has joined leader Ed Davey in urging 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 Defence Spokesperson and MP for Epsom & Ewell, Helen Maguire, commented: 

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

“To ensure the UK is protected against Russia and can provide the leadership our continent needs, 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 here. Politicians should get around the table and create a consensus on how to go further - including spending 3% of GDP on defence.

“We should set up a European Rearmament Bank, led by the UK and other like-minded European NATO allies, so we can collectively increase defence spending further and faster by raising additional capital.

“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.”