Chancellor John Healey is set to postpone his commitment to reach 3% of GDP spending on defence by 2030, deferring the decision until a Treasury review scheduled for next year. The delay means the October Budget will not include a firm timeline for meeting the ambitious target, marking a significant shift from earlier government pledges on military investment.
According to reporting from a national financial outlet, government insiders have confirmed that "bigger decisions on an uplift in defence spending" will be held back until the spending review takes place. Instead, Treasury sources indicate the first budget will prioritise fully funding the defence investment plan rather than setting a new 3% deadline. The government's current trajectory aims to reach 2.7% of GDP on defence by 2029 and then establish a path to 3% by 2035.
Why has Healey faced criticism over the delay?
Healey has drawn accusations of hypocrisy from opponents, given his resignation from the role of defence secretary in June. He stepped down in protest at then-Prime Minister Sir Keir Starmer's defence spending plans, arguing that insufficient resources were being allocated to the military. His decision to scale back the 3% target by 2030 now stands in sharp contrast to that principled stance.
What pressure is the US applying?
Washington is reportedly considering ways to pressure Britain into increasing defence expenditure. According to diplomatic reporting, Pentagon officials are drawing up measures that could include opposing British sovereignty over the Falkland Islands as leverage to encourage the UK to meet NATO's 5% spending pledge. The US is also reportedly considering "special attention" for Britain in its NATO review, with the Falklands sovereignty angle framed as leverage over defence spending decisions.
What is the background to the funding challenge?
The UK's defence plan has faced a significant funding gap, with reports indicating that £4.7bn still needed to be found in the autumn budget. The government had previously aimed for 3% of GDP on defence in the next Parliament, rather than by a fixed 2030 date, but the new approach suggests a more gradual trajectory.
When will the next budget decisions be made?
The Autumn Budget is scheduled for 28 October 2026, where defence spending will feature prominently but without the firm 3% by 2030 commitment. A spending review is expected to take place next year, though no date has yet been confirmed for that process.
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Key Facts
- The 3% defence spending target by 2030 will be deferred until a Treasury spending review next year, with no firm timeline included in the 28 October Budget
- The US is reportedly considering opposing British sovereignty over the Falkland Islands as leverage to encourage increased UK defence spending towards NATO's 5% pledge
- The government's revised trajectory aims for 2.7% of GDP on defence by 2029, with a path to 3% by 2035
- Prime Minister Burnham has committed to remaining neutral on the assisted dying vote, drawing support from campaigners backing the change
- Labour has moved ahead of Reform UK in polling, with Burnham as the only party leader with a positive approval rating
