Rachel Reeves may have to hit Brits with a £12billion tax bill to hike defence spending to 2.5% of GDP, as the US steps back from defending Europe.

To ensure no Government department is cut, the Chancellor would need to ask the taxpayer to fork out, if the UK wants to reach the defence spending goal by 2030. However, military chiefs are reportedly demanding Labour pumps even more money into Britain’s defences – and faster.

This comes against the backdrop of Donald Trump demanding NATO members splurge 5% of GDP on defence, while NATO’s General Secretary Mark Rutte has asked for 3%. Britain spent 2.3% of GDP on defence in 2024, according to NATO figures.

As the US and Russia thrashes out a deal in Saudi Arabia as part of attempts to end the war in Ukraine, European leaders are desperately trying to work out their own security agreement. The panic in London, Paris, Berlin, and across the continent, comes after US President JD Vance demanded European leaders “step up” to defend their own continent, as America “focuses on areas of the world that are in great danger”.

On Monday, Sir Keir Starmer travelled to the French capital to meet with Emmanuel Macron, German Chancellor Olaf Scholz and the continent’s other major leaders to discuss the future of European security. Prior to the meeting, the Prime Minister said the UK would deploy troops to Ukra ine, to guarantee peace, in the wake of a deal to end the war with Russia.

Writing in The Telegraph, Sir Keir said: “The UK is ready to play a leading role in accelerating work on security guarantees for Ukraine.

“This includes further support for Ukraine’s military, where the UK has already committed £3 billion a year until at least 2030.

“But it also means being ready and willing to contribute to security guarantees to Ukraine by putting our own troops on the ground if necessary.”

He added: “I do not say that lightly. I feel very deeply the responsibility that comes with potentially putting British servicemen and women in harm’s way.

“But any role in helping to guarantee Ukraine’s security is helping to guarantee the security of our continent, and the security of this country.”