Labour avoids setting a date for 3% defence spend target to keep borrowing costs down

Speaking at a Fabian Society event at the Labour Party Conference, defence secretary Wes Streeting said Labour will not set a specific date for achieving a 3% of GDP defence spending target, as doing so without a clear financing route could increase the cost of borrowing. The party has already budgeted to raise defence spending to 2.7% by 2027-28 and pledged a 3.5% share of national income by 2035, aligning with NATO expectations.

However, it has not confirmed whether the intermediate 3% goal by 2030 will be reached, amid soaring gilt yields and recent IMF advice to curb debt. Streeting highlighted the need to balance national security with fiscal responsibility, noting that Finance Secretary John Healey must manage public finances prudently. Former mayor Andy Burnham has rejected proposals to divert welfare spending to defence, emphasizing that security cannot come at the expense of social benefits. The issue remains under review until the next budget and spending review.