7 big questions as Britain hikes defense spending

1. Chancellor John Healey is set to announce a significant increase in defense spending in his first budget, despite aiming for the UK to reach 3.5% of GDP on defense by 2035. The current target is 2.7% which will only rise to that point next year, with no significant increase until 2030.

2. Healey, who quit his role as defense secretary amid a funding dispute, now faces pressure to fulfill his previous commitments. However, even securing the £4.7 billion needed for a 2.7% defense budget leaves little room for additional spending required to meet NATO's target.

3. Healey is considering allocating funds from the National Wealth Fund and the British Business Bank to support the defense industry, though it remains unclear if this will count towards defense spending commitments.

4. While the UK has declined to join the Canadian-led Defence, Security, and Resilience Bank, Healey will now focus on developing the government's own Multilateral Defence Mechanism (MDM).

5. The government is reviewing the "Buy British" initiative to determine what qualifies a company as British, which could impact defense industry participation in future contracts.