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Healey Orders 1% Capital Cuts to Cover £4.7bn Gap

By Drooid · Oct 28, 2026 · How we work

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UK Chancellor John Healey ordered departments to cut 1% of capital budgets to cover a £4.7 bn defence funding gap.
The cuts will raise £3 bn from 2027-28 to 2029-30 and £1.7 bn from the Treasury’s capital reserve.
Healey said Britain will target 3% of GDP on defence by 2030 and 3.5% by 2035.
Healey launched an Innovative Defence Finance Taskforce to attract private-sector defence investment.

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UK Chancellor John Healey ordered departments to cut 1% of capital budgets to cover a £4.7 bn defence funding gap.
The cuts will raise £3 bn from 2027-28 to 2029-30 and £1.7 bn from the Treasury’s capital reserve.
Healey said Britain will target 3% of GDP on defence by 2030 and 3.5% by 2035.
Healey launched an Innovative Defence Finance Taskforce to attract private-sector defence investment.