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Story summary
- Chancellor John Healey postponed the 2030 deadline for defence spending to reach 3% of GDP.
- Treasury officials said higher interest rates erased about half of the £24 bn fiscal headroom left by Reeves.
- IFS director Helen Miller warned that meeting the 3% defence target would require freezing NHS and other departments.
- Resolution Foundation said achieving a 3.5% defence target by 2035 would likely need tax hikes on middle-earners.
