John Healey 'unveiling billions in defence spending at Budget'
The Conservatives have demanded the Chancellor resign unless his Budget has 'fully funded 3 per cent defence spending'
TL;DR
- John Healey plans to announce billions in defence spending in the Budget.
- The investment will be directed to the National Wealth Fund and British Business Bank, which will then invest in British defence companies.
- Funding will come from long-term borrowing but is expected to generate returns, aligning with Labour's fiscal rules.
- This announcement addresses pressure for the UK to increase defence spending to three per cent of GDP by 2030.
- Current UK defence spending is around 2.6 per cent of GDP.
- The Conservatives have demanded Healey's resignation if the Budget does not fully fund the 3% defence spending target.
- Conservatives proposed funding defence by cutting benefits.
- The investment in public financial institutions (PuFins) will not count against certain Treasury metrics.
- The Conservative Shadow Defence Secretary welcomed the plan, calling it a copy of their own policy and urging investment in uncrewed and AI-driven military transformation.
- Defence Secretary Wes Streeting defended the government's approach and criticized past Conservative governments for underfunding defence.