- Chancellor, Rachel Reeves, touches down in South Africa for the G20 Finance Ministers and Central Bank Governors meeting today, 26 February.
- At the meeting Rachel Reeves will make clear that a strong defence is the “bedrock of economic growth” and make the case for “free and fair trade.”
- Follows the PM’s commitment to boost the UK’s defence spending by £13.4 billion to 2.5% of GDP by 2027 and the British Government’s steadfast support for the people of Ukraine.
Following the PM’s announcement yesterday, the Chancellor will state that in a dangerous world the UK will not shy away from bolstering defence spending and will set out our ambition to raise UK defence spending further to 3% by the next parliament, subject to economic and fiscal conditions.
Protecting national security to protect the economy will also be a key message that the Chancellor will set out on the global stage today as she attends the G20 Finance Ministers and Central Bank Governors meeting in Cape Town, South Africa.
The UK is already the third largest defence spender in NATO in cash terms, and this government has already boosted defence spending by almost £3 billion at the Autumn Budget.
The Chancellor will also reaffirm our commitment to European defence and encourage other European allies at the G20 to boost their defence spending in line with the UK in response to the security threats we face.
She will also discuss the possibilities for like-minded countries to mobilise private finance to maximise our financial resources for defence.
The government’s commitment to invest in defence will protect UK citizens from threats at home but will also create a secure and stable environment in which businesses can thrive, supporting the Government’s number one mission to deliver economic growth.
Chancellor of the Exchequer, Rachel Reeves said:
It’s clear we are facing a more dangerous world, and I will not hide from this reality. This is the moment for us all to step up – and together with our European partners we will go further and faster on defence.
National security will always be the first responsibility of this government and is the bedrock economic growth. Through intelligent investment, relentless reform, and free and fair trade – the most reliable driver of global growth – we can deliver sustainable growth that puts more money into the pockets of working people.
The Chancellor is also expected to set out that she is a champion of free and fair-trade and, will continue to make the case for openness in a series of bilateral meetings with G20 finance ministers.
While in Cape Town the Chancellor will engage with best-in-class British firms in South Africa and visit Cape Town’s historic V&A Waterfront. The Chancellor is expected to welcome British companies including consultancy Turner & Townsend and engineering firm Arup winning new contracts to play a role in the site’s expansion, showcasing UK expertise in designing, planning, and building infrastructure around the world.
The Chancellor will also meet influential businesses and investors in South Africa, such as representatives from Old Mutual Limited, the Foschini Group, and Absa, at a private reception at the High Commissioner’s residence, where she will deliver a keynote speech highlighting growth and investment opportunities in the UK.
