Defence firms surge as PM calls for Europe to step up

DEFENCE shares shot up yesterday morning after Sir Keir Starmer called for Europe to step up spending.

- By SAMUEL NORMAN

Babcock — which plays a key role in the UK’s nuclear submarine fleet as well as naval, land and air operations — jumped nearly 4%.

Aerospace supplier Melrose soared 3.5%, BAE Systems nearly 3% and Rolls-Royce nudged 1%.

The boost came after reports that the PM may accelerate defence spending to 3% of GDP by the end of this parliament in 2029.

Previously, the government set a deadline of the end of the next parliament in 2034.