Healey to 'drop 3% defence spending target in his first Budget'

John Healey will reportedly shelve a commitment to raise defence spending to 3 per cent of GDP by 2030 – a target he previously called on the Government to set – when he presents his first Budget as Chancellor in October.

Healey resigned as Sir Keir Starmer’s defence secretary earlier this year amid a long-running row over spending proposals included in the Government’s Defence Investment Plan (DIP).

But after being appointed as Chancellor by Andy Burnham last month, Healey is understood to be grappling with his own financial constraints, forcing him to delay any decision on the Government’s overall defence investment targets until the Treasury carries out a spending review next year.

According to the Financial Times, the Budget will focus on filling a defence equipment funding gap of nearly £5bn left behind by Starmer, amounting to about £1.2bn a year.

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