Wallace's comments come as the UK continues to ramp up support for Ukraine in the war-torn nation's quest to thwart Russian aggression.
"Conflict is coming by the end of this decade," Wallace said in an interview with The Sun. "Whether it is a cold war or hot, war is coming." He did not go into detail regarding against whom they would be fighting, but at the moment China and Russia are the UK's greatest rivals.
He went on to explain that Britain's best bet when it comes to preventing escalation is being well prepared.
“We just have to recognise that in order to deter you just have to be ready," he said. "You have to be equipped and you have to stand with your friends and your allies."
In order to accomplish that, Wallace argued, parliament would have to cough up even more money than it already does to fund Britain's armed forces.
"The world is more dangerous, more anxious and more insecure," Wallace suggested. "We need a greater proportion of the public spend on defence ... Freedom isn't free."
The defence secretary has been a vocal supporter of the ongoing conflict in Ukraine.
"We are not in for a period, we are in it until you defeat Russia and Ukrainians can go home," he told Ukrainian soldiers training in the UK. "Britain's message to Russia is we are not giving up and we are not going away."
According to a poll conducted by Ipsos, the majority of Britons agree with Wallace, making them more likely than citizens of most other nations to support war efforts.
Eight in ten said that "doing nothing now will encourage Russia to take further military action in Europe and Asia." The majority also said that the UK must support sovereign nations when attacked, mostly with weapons aid and monetary aid.
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