Prime Minister Keir Starmer has defended the UK's participation in the European Union's £78bn loan scheme for Ukraine, arguing that the benefits outweigh the costs and that the move will also create jobs at home. Speaking at the European Political Community summit in Armenia, Starmer acknowledged heightened tensions between the US and Europe under President Donald Trump, particularly over defence issues.
Starmer confirmed that negotiations have begun for the UK to join the recovery loan plan, which would allow British defence firms to supply equipment to Kyiv in exchange for a financial contribution of up to £400m from existing funds ringfenced for Ukraine. He emphasised the need for Europe to accelerate its defence efforts, noting that some traditional alliances are under strain.
The Prime Minister used the summit to push for closer UK-EU ties on defence, security, and the economy, ahead of difficult local elections. He stated that Brexit had damaged the UK economy and that the national interest lies in being at the heart of a stronger Europe. The EU has called for a permanent mechanism for an “appropriate financial contribution” from the UK for greater market access, with discussions ongoing about participation in EU innovation funds and energy markets.
Cabinet Office Minister Nick Thomas-Symonds confirmed the UK's willingness to make a financial contribution but dismissed reports of a £1bn annual fee as incorrect. The Cabinet Office is auditing sectors that could benefit most from further integration, including cars, chemicals, and pharmaceuticals. European leaders have agreed that the UK would need to pay into structural and investment funds for the first time since Brexit if it wants to join the EU's single market for electricity.
