Defence secretary: Nato members need to raise their game
Defence Secretary Michael Fallon has said other Nato members need to "raise their game" in terms of meeting the spending target.
Speaking at a press conference after meeting with US Defence Secretary James Mattis, Mr Fallon said too few of the 28 members were meeting Nato's annual 2% defence spending target.
He added that Nato should "modernise and streamline its military structures to ensure faster decision making" in the face of global terror.
Calling for "fairer burden sharing" by Nato members, Sir Michael said: "Secretary Mattis and I have agreed that others must now raise their game and those failing to meet the 2% commitment so far should at least agree to year-on-year real-terms increases.
"And increased burden-sharing is not on its own enough.
"We've also agreed that Nato must modernise and streamline its military structures to ensure faster decision-making and take a 360-degree view of all the security threats that face us.
"Nato has the experience and resources to combat international terror."
Sir Michael also announced a £90 million contract for UK-based BAE Systems to support the upkeep of US F-35 fighter jets.
Mattis said Britain's global leadership role is as needed today as any time in history.
He added that article 5 - the principle of collective defence - will remain the "absolute bedrock of the Nato alliance".
Mattis also said "what Russia is up to in Afghanistan with the Taliban gives us concern".
The US is reviewing the recommendation for more troops in Afghanistan, he added.
Mr Fallon's Nato comments come after he refused to rule out cuts amid claims of a funding shortfall in the armed forces.
The Ministry of Defence is facing a £10 billion funding shortfall over the next decade, according to the Times.
Speaking to ITV News, he said the defence budget was the fifth biggest in the world but like any other big organisation "we're always having to look at efficiencies".