Chancellor John Healey will delay setting out when the UK will meet the target of spending 3% of GDP on defence until next year’s spending review, the Treasury has confirmed. This decision means the upcoming budget on 28 October will not include further details on the timeline for reaching the target.
Treasury sources indicated that the focus of Healey's first budget will instead be on fully funding the defence investment plan (DIP). The three-year DIP was a final announcement by former Prime Minister Keir Starmer, with approximately £1.2bn a year previously unaccounted for.
Healey had previously resigned as defence secretary in June under Keir Starmer's leadership, accusing the then prime minister of being "unable" and the Treasury "unwilling" to "commit the resources that the nation needs to defend the country." He had insisted the 3% target should be met by 2030, citing rising global conflicts and security risks.
However, since becoming Chancellor, Healey has declined to set a date for the target. Speaking to Sky News on Friday, he stated that fiscal discipline was the "first priority" for any chancellor, describing it as the "bedrock for economic stability."
A government spokesperson said the prime minister and chancellor are committed to fully funding the defence investment plan. They added that a pathway to meet the Nato commitment of 3.5% of GDP on defence by 2035 will be set out at the spending review, along with a target date to hit 3% on that path. Defence spending is expected to reach 2.7% of GDP by 2030.