"We need to step up to the challenge of securing our own country, but also securing Europe as well," Finance Minister Rachel Reeves said in a speech to manufacturers gathered in London.

The government has promised a review of defence contract rules "to incentivise faster delivery" of equipment from ships to munitions, drawing lessons from Britain's rapid arms mobilisation for Ukraine during its three-year war with Russia.

"The US has supported Ukraine more than any other country in the world. It is important now that Europe steps up," Reeves added, in light of Washington suspending aid to Ukraine.

It comes after British Prime Minister Keir Starmer last week pledged to boost UK defence spending to 2.5 percent of the nation's economy by 2027 -- which the Labour government sees as helping also to grow stagnant gross domestic product.

European chief Ursula von der Leyen meanwhile on Tuesday presented a five-part plan to mobilise some 800 billion euros ($833 billion) for Europe's defence -- and help provide "immediate" military support for Ukraine.

While the UK is no longer a member of the European Union, Starmer is making diplomatic efforts to bridge differences between Europe and the US over Russia's war in Ukraine.

The UK, home to defence giant BAE Systems and Rolls-Royce -- which makes engines for military planes and submarines -- added Tuesday that it plans to ensure small and medium-sized enterprises have better access to supply chains across the defence sector.

Trade organisation ADS, representing 1,300 SMEs, described the announcement as "hugely welcome", telling AFP also that such companies "are a vital part of the UK's defence sector".

Reeves also said Tuesday that "there's every reason to be hopeful about coming to some sort of trade deal" between the UK and the US.

"But it shouldn't be about choosing between the US and our nearest neighbours and trading partners in Europe," she added.