Chancellor Healey postpones UK defence spending target to next year's review

John Healey, appointed chancellor after succeeding Rachel Reeves, has told the Treasury that his upcoming budget will concentrate on fully funding the three-year defence investment plan, leaving the timing for meeting the 3% of GDP defence spending target to the next spending review. Although he once argued the target should be met by 2030, the Treasury says no specific date will be provided in the budget. A government spokesperson said the prime minister and chancellor remain committed to the NATO pledge of 3.5% of GDP by 2035 and will set a pathway to the 3% mark at the review.

Current forecasts show defence spending reaching 2.7% of GDP by 2030, partly due to reductions in aid spending. Healey, who resigned as defence secretary in June, emphasized fiscal discipline as a priority. He is scheduled to attend a G20 finance ministers meeting in North Carolina, where global growth and energy price issues will be discussed.