Key facts
- John Healey resigned as Defence Secretary due to insufficient defence funding.
- Healey's resignation letter challenged Keir Starmer's authority over the Treasury.
- The dispute involved a defence investment plan, with the final agreement at £13.5bn.
- The UK's defence spending is projected to increase to 2.5% of GDP by next year.
- Nato allies are being urged to meet 3.5% of GDP spending targets by 2035.
John Healey's resignation as Defence Secretary has brought renewed attention to the relationship between Prime Minister Keir Starmer and Chancellor Rachel Reeves. Healey's resignation letter accused the prime minister of lacking the authority to secure necessary resources for national defence amidst rising threats, a criticism previously leveled at Starmer for being too easily influenced by Reeves.
Allies of Starmer indicated that the prime minister had anticipated a confrontation with Reeves over defence spending, not Healey. The close working relationship between Starmer and Reeves has been a significant factor in Labour's political trajectory, often presenting a united front. Reeves is reportedly the only cabinet minister guaranteed to remain in her post until the election.
Recent reports suggest a deterioration in the Starmer-Reeves relationship, with Starmer reportedly irritated by perceived attempts by Reeves to position herself for a future role in a potential Andy Burnham government. A major point of contention was the ongoing dispute over the defence investment plan (Dip). The Ministry of Defence initially sought £28bn over four years, later reduced to £18bn, while the Treasury countered with £12bn. Ultimately, an investment of £13.5bn was agreed, with £10bn of new funding sourced from cuts to other departments. Starmer presented the final plan to Healey, expecting resistance from Reeves, who was reportedly unhappy about scaling back growth-boosting programs. To Starmer's surprise, Healey opposed the plan, leading to his resignation and a challenge to Starmer's authority.
The world is described as more dangerous and uncertain, with warfare changing focus to drones, cyber, space, and technology, necessitating mass production of projectiles over long-term investment in large platforms. The United States has indicated it will no longer subsidize European defence, demanding allies meet Nato spending targets. The UK spent 2.3% of GDP on defence last year, with Labour promising to increase this to 2.5% by next year and further to 3.5% by 2035, alongside other Nato allies.