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The Prime Minister has been urged to cut military spending, nuclear weapons and arms trade subsidies as an alternative to cuts in education.
Multinational arms firm BAE Systems were forced to abandon attempts to run a workshop at the University of Manchester last week amidst a series of protests.
Campaigners will attned the Spirit of Summer Fair in London this weekend to highlight the fact that the owners, Clarion Events, are also involved in the arms trade.
The chairman of BAE Systems has said he is happy to continue selling arms to Saudi Arabia, although they have been used to suppress peaceful protests in Bahrain.
The Foreign and Commonwealth Office's Strategic Export Control Reports reveal the UK government continued to licence arms exports to Libya till the end of 2010.
A demonstration outside the Treasury has called for cuts in military spending, including subsidies for the arms trade, at a time when other areas face severe cutbacks.
The Campaign Against Arms Trade have warned that supplying arms to Libyan rebels will have long-term negative consequences.
CAAT has called for an arms embargo on Saudi Arabia, whose forces are using British-made weapons to suppress pro-democracy protests in Bahrain.
The government has been urged to cancel an international arms fair in the wake of public outrage over UK arms sales to the Gaddafi regime in Libya.
Following protests over British arms sales to Libya, the police have warned government departments to be prepared for further demonstrations.