Rachel Reeves has called on European allies to follow the UK’s lead and “step up” on defence after Keir Starmer’s pledge to boost spending to 3 per cent.

In a move to underscore the reasoning behind the controversial budget shift, the chancellor wrote in The Telegraph it was the duty of the government to respond to Russian aggression by increasing defence spending to 2.5 per cent of GDP in the next to years, before going further following the next election.

“This is a generational moment for our Continent. All of us must step up and do more on defence,” Ms Reeves said. “That is why over the coming days I will be talking to European counterparts at the G20 in South Africa about the importance of security and defence for our economies, and how we can work together to bolster them.”

The chancellor said Britain had stepped up at “every moment of history” when the world became less secure, referencing Winston Churchill’s stance against Nazi Germany, the post-war Labour government’s involvement in founding Nato, and the previous Conservative government’s support for Ukraine.

Ms Reeves’ comments come as US president Donald Trump pressures European allies in Nato to boost their own share of the cost of defence as the administration brokers a deal with Russia to end the Ukraine war.

Sir Keir’s announcement to increase defence spending at the cost of foreign aid preceded his trip to Washington DC for his first meeting with the US president.

Following the announcement, the prime minister told a press conference on Tuesday that the decision had been “three years in the making” since the full-scale invasion of Ukraine by Russia, describing his decision as “a generational moment”.

Asked if he would have announced a defence spending boost if Donald Trump were not in the White House, Sir Keir admitted that he agrees with the US president’s stance on defence. "Yes, it's true President Trump thinks we should do more, and I agree with him," Sir Keir told reporters.

"It chimes with my thinking on this. And by more, I mean more capability, I mean more co-ordination, and I mean more spending.”

Labour’s rhetoric also echoes that of French president Emmanuel Macron, and incoming German chancellor Friedrich Merz, who said following his Sunday election victory that the continent needed to shed its reliance on the US.

Ms Reeves said in the Telegraph that the government will publish a new defence industry strategy in the coming months “to deliver British jobs, skills and innovation”, arguing should be making defence equipment to sell to the world.

“It will be about revitalising our heartlands. It is a chance for government, industry and businesses to step up to the challenge and maximise the full potential that is ahead of us – and the opportunities I know Britain can seize,” she said.

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