John Healey to duck meeting UK defence spending target in budget

John Healey, former UK defence secretary, will skip outlining when the country will hit the 3% of GDP budget for defence during his upcoming budget on October 28th. The Treasury has confirmed that the focus will be on fully funding the defence investment plan, which was one of Labour leader Keir Starmer's final announcements. The £1.2bn annual figure left unaccounted for by former defence secretary Rachel Reeves would have to be sourced through cuts in other Whitehall departments.

The government promises to set a pathway to meet the NATO commitment of 3.5% of GDP on defence by 2035 and a target date for 3% on that path at the upcoming spending review in the following year. Defence spending is projected to reach 2.7% of GDP by 2030, partly due to Starmer's decision to reduce the UK's aid spending. Healey had previously emphasized that this 3% figure should be met urgently due to the escalating global conflicts and security risks.

He resigned from his role in June, accusing Starmer's government of being "unable" and the Treasury "unwilling" to provide the necessary resources to protect the nation. The prime minister and Burnham have not committed to the 3% target yet. Healey, in a Sky News interview, stated that fiscal discipline is the top priority for any chancellor, essential for economic stability.

The chancellor will attend a G20 finance ministers meeting in North Carolina this weekend, discussing global growth prospects amidst high energy prices, volatile government bond markets, and the US-Canada trade war.