Key facts
- Former Defence Secretary John Healey resigned over the draft Defence Investment Plan (DIP).
- Healey criticized Chancellor Rachel Reeves for not fully funding the DIP.
- The draft DIP does not include a commitment to raise defense spending to 3% of GDP by 2030.
- Healey warned that the UK risks falling behind NATO allies.
- Sir Keir Starmer expressed concerns about "irresponsible borrowing" related to defense spending.
- Chancellor Reeves indicated that increased defense spending should be funded by cuts elsewhere, not tax rises or borrowing.
John Healey, the former Defence Secretary, has launched a strong criticism against Chancellor Rachel Reeves and Sir Keir Starmer regarding the UK's defense spending. In his resignation speech, Healey expressed concern that the draft Defence Investment Plan (DIP) lacks a firm commitment to increase defense spending from its current 2.6% of GDP to the NATO-aligned target of 3% by 2030. He warned that the UK risks falling behind its allies if it does not adequately fund its armed forces, stating that adversaries do not operate on Treasury-imposed schedules.
Healey's comments suggest a willingness to deviate from strict fiscal rules to ensure sufficient defense funding, potentially through international cooperation or shared defense banks. However, Sir Keir Starmer has previously criticized Healey's proposals, citing risks to public finances from "irresponsible borrowing." Chancellor Reeves echoed concerns about increasing public debt, suggesting that any additional defense spending should be financed by cutbacks in other areas rather than through increased borrowing or tax rises.
Former armed forces minister Al Carns also resigned over the £13 billion offer within the DIP, criticizing the plan for focusing on outdated military strategies rather than future threats. The government faces a deadline of July 7, coinciding with the next NATO summit, for the publication of the DIP. Reports indicate that the Treasury is unwilling to allocate further funds to the Ministry of Defence, leading to ongoing negotiations between Downing Street and the MoD.
Chief of Defence Staff Air Chief Marshal Sir Richard Knighton has indicated that the armed forces may need to reduce training and operational activities if resource funding does not increase. He also highlighted the impact of rising inflation, particularly jet fuel costs, on current budgets.