Overview
- Chancellor John Healey will not enshrine a 3% of GDP defence target in the October 28 Budget and says the government will set a clear spending pathway at next year's spending review.
- The Treasury says an immediate shortfall of about £5 billion in the Defence Investment Plan must be filled first, a step Healey warns could force difficult decisions in the October Budget.
- Official projections under current plans put defence spending at roughly 2.7% of GDP by 2030, leaving a gap to the previously pledged 3% target.
- Allies, notably US officials pressing a 'Nato 3.0' approach, and defence industry figures warn that deferring a timetable could disrupt procurement, readiness and partnerships such as AUKUS.
- Critics and opinion pieces have accused Healey of reversing the stance that prompted his resignation as defence secretary in June while government statements stress a continued commitment to meet NATO's 3.5% goal by 2035.