Dame Priti Patel - who was appointed the Conservative's shadow foreign secretary earlier this week - said the government should be aiming to meet the 2.5% target by 2030.
Asked if her party would accept cuts elsewhere in order to meet 2.5%, Dame Priti argued there were "efficiencies" that could be made as well as changes around the "performance of the civil service".
She added that the government "could have done more in that Budget to put the pathway forward for 2.5% of GDP on defence".
She said the increase was "essential" adding: "We are living in very insecure times geopolitically, and we do need to step up."
Sir Tony said it was "crucial" for the government to "balance the ambition of the nation and the prime minister against the resources to match that ambition".
He also said the Army needed "longer-term stability" and "clarity" around spending.