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Chancellor Delays 3% Defence Target Date to Next Review

8/30/2026

18 2 Full Breakdown

Summary

Story summary

Chancellor John Healey delays setting a date for meeting the 3% defence-spending target until next year’s spending review.
Healey’s first budget on 28 October will fully fund the defence investment plan.
The defence investment plan leaves a nearly £5 billion equipment funding gap from former Prime Minister Keir Starmer’s budget.
Treasury says the spending review will set a path to meet NATO’s 3.5% defence target by 2035.

History

Historical Context

The 2010 Strategic Defence Review set a 2 % of GDP defence-spending goal, but NAO reports later flagged unaffordable equipment plans, noting a £4.3 billion Navy shortfall in 2021 and a £5 billion gap projected for 2020. Labour’s 2025 review now targets 2.5 % by 2027 and 3 % in the next parliament, yet Treasury warnings suggest the UK may still miss NATO’s 3.5 % aim by 2035.

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Story summary

Chancellor John Healey delays setting a date for meeting the 3% defence-spending target until next year’s spending review.
Healey’s first budget on 28 October will fully fund the defence investment plan.
The defence investment plan leaves a nearly £5 billion equipment funding gap from former Prime Minister Keir Starmer’s budget.
Treasury says the spending review will set a path to meet NATO’s 3.5% defence target by 2035.

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