The UK Treasury has confirmed that Chancellor John Healey will not establish a specific timeline for increasing defence spending to 3% of GDP in the upcoming 28 October budget. Instead, the government intends to defer any formal roadmap for this target until a comprehensive spending review, which is expected to take place next year.
This decision marks a shift for Healey, who previously advocated for a 2030 deadline while serving as defence secretary. In his resignation letter to Prime Minister Keir Starmer last June, Healey argued that setting a 2030 target was essential for national security. At that time, he criticized the government for being “unable” and the Treasury for being “unwilling” to “commit the resources that the nation needs to defend the country.”
Since succeeding Rachel Reeves as chancellor following Andy Burnham’s appointment as prime minister, Healey has prioritized fiscal restraint. In a recent interview with Sky News, he emphasized that fiscal discipline remains the “first priority” for his office, describing it as the “bedrock for economic stability.” He cautioned against “maxing out the country’s credit card” to address national challenges.
The immediate focus for the October budget will be the full funding of the existing three-year defence investment plan (DIP). This initiative, one of Starmer’s final major announcements, currently faces a funding gap of approximately £1.2bn annually. Previously, Reeves had suggested that this shortfall would necessitate cuts across other Whitehall departments.
A government spokesperson reaffirmed the administration’s commitment to national security, stating that the prime minister and chancellor are dedicated to funding the defence investment plan. The government intends to establish a pathway toward the NATO commitment of 3.5% of GDP by 2035, with a specific target date for the 3% milestone to be determined during the future spending review.
Current projections indicate that defence spending is on track to reach 2.7% of GDP by 2030, supported in part by Starmer’s earlier decision to reduce international aid spending. Despite these figures, Prime Minister Burnham has consistently declined to commit to the 3% target favored by Healey during his time in the defence role.
As he prepares for the budget, the chancellor is scheduled to travel to North Carolina this weekend. He will participate in a G20 finance ministers meeting hosted by US Treasury Secretary Scott Bessent. Discussions are expected to cover global economic growth, volatile bond markets, high energy costs, and the ongoing trade tensions between the US and Canada. The report also notes that however, since succeeding Rachel Reeves following Andy Burnham’s arrival at No 10, Healey has declined to set a date for meeting the 3% target, which he had previously insisted should be hit by 2030. The report also notes that a government spokesperson said: “The first duty of government is to keep its citizens safe.
Comments