Rutte was speaking hours after Russia launched its largest-ever drone attack against Ukraine, triggering Nato to scramble jets in Poland.
“We see in Ukraine how Russia delivers terror from above, so we will strengthen the shield that protects our skies,” Rutte said.
He added that Nato needs “a 400% increase in air and missile defence” to maintain credible deterrence and defence.
“The fact is, we need a quantum leap in our collective defence,” he said.
He said “we are all on the eastern flank”, referring to the border with Russia, adding that the distance between European capitals is “only a few minutes” for Russian missiles.
Last week, as part of the Strategic Defence Review, the Prime Minister pledged to spend 3% of GDP on defence by the end of the next Parliament.
However, less than 24 hours later, Nato said the figure would have to rise to a minimum of 3.5%, which Starmer has agreed to without confirming how this will be achieved.
Starmer will be under renewed pressure to explain how this uplift will be funded before the Chancellor’s spending review on Thursday NZT.
Defence Secretary John Healey has previously refused to rule out tax rises to fund an increase in defence spending.
One of the central messages from Rutte’s speech in London was that alliance members had to boost capabilities. He argued that Nato armies needed “thousands more armoured vehicles and tanks”.
“Russia produces in three months what the whole of Nato produces in a year,” he said.
That was followed by another stark warning: “Russia could be using military force against Nato in five years”.
‘Devastating consequences’
But Rutte also conceded that Putin knows an attack on Nato would carry “devastating consequences”.
“We are deadly serious that if anyone tries to attack us, the consequences of that attack would be devastating, be it Russia or anyone else,” he said.
“This is not only about money and weaponry but mentality. We do realise there is a lot at stake here. The people trying to act against us must understand that.”
Rutte warned that China is developing its military power at breakneck speed.
“The main long-term threat against Nato is Russia. There’s no doubt. But there is more than Russia. Nato was never established only to fight the Soviet Union,” he said.
“It was about protecting Nato from anyone who wants to attack us. What you see in China is an enormous build up of their military.”
Taking questions after his speech, Rutte insisted that the US remained committed to Nato.
However, he also admitted that the US had carried “too much of the burden” in propping up the alliance as he urged Europe and Canada to spend more on defence.
“American allies have broad shoulders. Europe and Canada will do more for our shared security. That will be backed by America’s rock-solid commitment to Nato,” he told the audience at Chatham House.
As Rutte was speaking, Canada announced it would pour extra billions into its armed forces and hit Nato’s spending target five years earlier than promised.
Canada has been under pressure from the US and other Nato allies for years to increase military funding. Canada currently spends about 1.4% of GDP on defence.
“Now is the time to act with urgency, force, and determination,” Mark Carney, the Canadian Prime Minister, said in a speech in Toronto, reiterating promises to work more closely with Europe’s defence industry.