The Treasury's stance on funding the government's long-term pledge to spend 3.5% of GDP on defence by 2035 has left Defence Secretary John Healey questioning whether the nation's security is being taken seriously enough. Chief Secretary Lucy Rigby's assurance that this significant decision will be made by the next Prime Minister and Treasury after the 2027 spending review raises questions about the current government's commitment to national security.
Ms Rigby was responding to criticisms of the recently published Defence Investment Plan (DIP), which has been marred by controversy. The strategy, designed to boost defence spending, led to the high-profile resignations of Mr Healey and junior minister Al Cairns over concerns that it failed to address current threats adequately. Former Nato chief Lord Robertson also expressed disappointment with the plan, suggesting it did not do enough to tackle pressing security challenges.
The commitment to increase defence spending to 3.5% of GDP is estimated to require an additional £40 billion annually, equivalent to a four pence rise in income tax. Yet, Ms Rigby confirmed that the Treasury has not evaluated how this long-term pledge will be funded, deferring the decision until the next spending review. She also downplayed a £5 billion shortfall within the current defence plan, stating it was not unusual for governments to address such shortfalls during budget reviews.
The Labour Party had previously highlighted its commitment to boosting defence spending as part of its leadership campaign. Prime Minister Keir Starmer promised an additional £15 billion for the armed forces over four years, but the recently launched DIP omitted any clear blueprint for funding the longer-term 3.5% commitment. This omission has intensified scrutiny over the government's fiscal strategy for national security.
Andy Burnham, widely regarded as a potential future Prime Minister, has expressed his intention to take the responsibilities of funding the defence investment plan seriously if elected. His approach will be crucial in determining how the UK navigates its defence commitments and broader economic pressures in the years ahead.