Overview

This bill mandates the UK government to meet the NATO target of spending at least 2% of its Gross Domestic Product (GDP) on defence each year, starting in 2016. It outlines the process for reporting on this spending, including explanations if the target isn't met, and establishes independent verification of the expenditure.

Description

The Defence Expenditure (NATO Target) Bill legally obligates the UK Secretary of State to ensure the country meets NATO's 2% GDP defence spending target annually from 2016 onwards. The bill defines "defence expenditure" according to NATO criteria.

Annual Reporting: The Secretary of State must submit an annual report to Parliament detailing UK defence spending. If the 2% target is missed, a further statement must be presented explaining the shortfall, citing factors like economic circumstances, fiscal constraints (impact on taxation, public spending, borrowing), or external events. If the target is initially met but later found to be unmet due to a report revision, a similar explanatory statement is required.

Accountability and Verification: The bill clarifies that Parliament's accountability mechanisms are limited to reviewing these reports and statements. Non-compliance with the 2% target does not invalidate any government actions. The Secretary of State must arrange for an independent assessment of whether UK defence spending aligns with NATO's criteria, and report on this verification process annually.

Government Spending

The bill doesn't directly specify a sum, but aims to legally bind the government to allocate at least 2% of the UK's GDP towards defence spending annually. This implies potentially significant and ongoing increases in government expenditure, depending on the fluctuation of GDP.

Groups Affected

• UK Government: Legally bound to meet the 2% target and to provide regular reports to Parliament.
• Ministry of Defence: Responsible for managing the increased defence budget and adhering to NATO's expenditure criteria.
• Taxpayers: Potentially impacted by changes to taxation to fund the increased defence spending.
• NATO: Benefits from the increased UK contribution to collective defence.

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