Chancellor John Healey has delayed setting a date for the UK to meet the 3% GDP defence spending target, shifting focus to funding the existing defence investment plan (DIP) instead, sources confirm. The move, revealed ahead of his first budget on 28 October, has drawn criticism from opposition parties and defence experts.
The decision to shelve Healey’s previously advocated 3% defence spending target by 2030 marks a significant pivot in the Labour government’s military funding strategy. This shift has intensified political tensions and raised questions about the UK’s long-term defence commitments.
Healey’s Shift from 3% Target
Healey, who had long argued that increasing defence spending to 3% of GDP by 2030 was critical to national security, now faces accusations of hypocrisy. His resignation letter to Starmer in June explicitly stated, As we have regularly discussed, I am certain that a headmark date for 3% of GDP on defence in 2030 is what Britain must set.
However, the government’s latest plans, outlined in multiple sources, indicate that the 3% target will not be addressed in his first budget but instead deferred to a spending review next year.
The first duty of government is to keep its citizens safe. The prime minister and chancellor are committed to fully funding the defence investment plan. At the spending review we will set out a pathway to meet our Nato commitment of 3.5% of GDP on defence by 2035 and will set a target date to hit 3% on that path. A government
Opposition Criticism and Political Fallout
The Conservative Party has condemned the decision, with shadow defence secretary James Cartlidge accusing Healey of backtracking on the very pledge which sealed the fate of the last PM.
Cartlidge argued that Russia’s escalating threats necessitate immediate action, stating, Russia doesn’t work to Treasury timetables, and we can’t wait for a spending review to keep Britain safe.
Lord West, a former First Sea Lord and Labour peer, echoed these concerns, calling Healey’s shift a bit hypocritical.
The Daily Mail highlighted that the Institute for Fiscal Studies think-tank has said raising spending to 3 per cent in 2030 would cost an extra £10 billion a year in today’s terms, a figure the government has yet to address directly.
Current Defence Spending and Future Projections
Defence spending is currently on track to reach 2.7% of GDP by 2030, under the DIP inherited from Starmer. This figure, which Healey had previously criticized as insufficient, remains unchanged in the new plans.
Healey defended his approach in an interview with Sky News, stating, Fiscal discipline has been the bedrock of the government that I was part of for the first couple of years. As a Labour government since July 2024, I was proud to be part of that.
However, he acknowledged global conflicts and security threats as challenges, adding, It’s hard yards, but we’re starting to see from that period investment rising, public services improving and rock-solid fiscal discipline as the foundation.
What Comes Next: The Spending Review
The government’s next major step will be a spending review expected to be held next year, where it plans to outline a pathway to meet the 3.5% NATO commitment by 2035 and set a target date to hit 3% on that path. However, the lack of immediate action has sparked uncertainty about the timeline and feasibility of these goals. With Russia’s recent threats against British military assets and ongoing tensions in the Middle East, the delay has intensified debates over the UK’s strategic priorities.
As the political debate intensifies, the focus will remain on whether the spending review will deliver concrete commitments or further delays. For now, the government’s emphasis on fiscal discipline and the DIP’s funding gap underscores a cautious approach to defence spending, even as critics warn of potential risks to national security.
