John Healey Delays 3 % Defence-Spending Target Until Next Year’s Review

Chancellor John Healey has announced that the government will not set a date for reaching the 3 % of GDP defence-spending target by 2030. Instead, the focus of his first budget on 28 October will be to fully fund the Defence Investment Plan (DIP), which contains an annual shortfall of about £1.2 billion. A Treasury review scheduled for next year will determine a pathway to the NATO-mandated 3.5 % target by 2035. Current projections place defence spending at 2.7 % of GDP by 2030.

The Guardian

Healey resigned as defence secretary in June 2024, accusing Prime Minister Keir Starmer of being “unable” and the Treasury “unwilling” to allocate the resources needed for national security. After Andy Burnham replaced Starmer as Labour leader, Healey was appointed chancellor, raising expectations that the 3 % goal would be met. Treasury insiders now say the government must first address a £5 billion equipment-funding gap left by the previous administration.

The London Economic

A government spokesperson said:

The Guardian

• “The first duty of government is to keep its citizens safe. The prime minister and chancellor are committed to fully funding the defence investment plan. At the spending review we will set out a pathway to meet our NATO commitment of 3.5 % of GDP on defence by 2035 and will set a target date to hit 3 % on that path.” “The first duty of government is to keep its citizens safe. The prime minister and chancellor are committed to fully funding the defence investment plan. At the spending review we will set out a pathway to meet our Nato commitment of 3.5% of GDP on defence by 2035 and will set a target date to hit 3% on that path.” — government spokesperson

The GuardianThe London EconomicJohn Healey U-turns on defence spending

He added that the Treasury’s constraints make it “not easy” to raise spending despite “global conflict, increasing dangers.”

The London Economic

• “The first duty of government is to keep its citizens safe. The prime minister and chancellor are committed to fully funding the defence investment plan. At the spending review we will set out a pathway to meet our Nato commitment of 3.5% of GDP on defence by 2035 and will set a target date to hit 3% on that path.” — government spokesperson

The Guardian