Defence Secretary urges Burnham to commit to 3.5% spending target | PiQ Markets
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Defence Secretary urges Burnham to commit to 3.5% spending target
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IN SHORT
Defence Secretary Dan Jarvis is urging potential Prime Minister Andy Burnham to commit to increasing UK defence spending to 3.5% of GDP by 2030. This would necessitate an additional £25 billion annually. Meanwhile, Deputy Labour leader Lucy Powell defends Burnham's 'No 10 North' plan, which seeks to decentralize government power from Whitehall to foster regional growth. Separately, former Treasury adviser Nicholas Stern recommends Burnham appoint Ed Miliband as chancellor, praising Miliband's economic vision.
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Key Numbers
3.5%UK defence spending target as % of GDP
2030Year for defence spending target
£25 billionAdditional annual spending required for defence
Likely next prime minister being lobbied on spending and government plans
Lucy Powell
Deputy Labour leader defending 'No 10 North' plan
Nicholas Stern
Former chief economic adviser to the Treasury recommending a chancellor
Ed Miliband
Recommended to be appointed chancellor
Key facts
Defence Secretary Dan Jarvis urges Andy Burnham to commit to 3.5% of GDP defense spending by 2030.
This defense spending target would require an additional £25 billion annually.
Jarvis is lobbying Burnham for this commitment in the upcoming spending review.
Deputy Labour leader Lucy Powell defends Andy Burnham's 'No 10 North' plan.
The 'No 10 North' plan aims to shift government power from Whitehall to drive regional growth.
Former Treasury adviser Nicholas Stern urges Andy Burnham to name Ed Miliband as chancellor.
Stern cited Miliband's 'bold' vision for economic revival and investment.
Defence Secretary Dan Jarvis is pressing Andy Burnham, the presumptive next prime minister, to commit to a defense spending target of 3.5% of GDP by the year 2030. Achieving this goal would require an annual increase of approximately £25 billion in defense expenditure. Jarvis is actively lobbying Burnham to include this commitment in the forthcoming spending review.
In parallel, Deputy Labour leader Lucy Powell has voiced support for Andy Burnham's 'No 10 North' initiative. This plan proposes a substantial reorganization of governmental functions, with the objective of relocating significant power away from the central administration in Whitehall. The stated aim of this decentralization is to stimulate economic development and growth in the UK's regions.
Furthermore, Nicholas Stern, who previously served as a chief economic adviser to the Treasury, has advised Andy Burnham to select Ed Miliband for the position of chancellor. Stern specifically cited Miliband's "bold" approach and his vision for revitalizing the economy through increased investment as reasons for this recommendation.
↳ Why This Matters
Defence Secretary Dan Jarvis is pressing Andy Burnham, the presumptive next prime minister, to commit to a defense spending target of 3.5% of GDP by the year 2030. Achieving this goal would require an annual increase of approximately £25 billion in defense expenditure. Jarvis is actively lobbying Burnham to include this commitment in the forthcoming spending review.
Frequently asked questions
The DIP is a plan announced by outgoing Prime Minister Keir Starmer that committed an extra £15 billion for Britain's armed forces, including funds for autonomous systems like drones.
The DIP left a shortfall of £4.7 billion to be found in the upcoming budget, with an additional £10.3 billion needing to be raised through Whitehall cuts and asset sales.
Burnham is examining a tax rise on specific businesses like warehouses and major developments, while also proposing to cut business rates for pubs and other high street establishments.
No, Burnham has stated he will stick to Labour's 2024 manifesto pledge not to raise these three main taxes.
What Happens Next
01Burnham is expected to become prime minister on July 20.
02The next UK budget is anticipated in October or November.
03Burnham will announce his choice for finance minister.
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