Chancellor Healey will be under pressure to deliver for armed forces
BBC News 2026-07-20 19:36:51
Context: As Chancellor, John Healey faces pressure to fulfill his previous commitment to increase military spending, particularly after criticizing the Treasury for underfunding the Defence Investment Plan (DIP) during his tenure as Defence Secretary. Healey had resigned from his position, citing the Treasury's reluctance to provide adequate funding, and now, as Chancellor, he must navigate competing demands to allocate sufficient funds for the armed forces. The UK's defence budget currently stands at over £63 billion per year, but Healey had argued that it needs to rise to around £90 billion by 2030 to meet the 3% of GDP target.
Key Facts
- John Healey, as Defence Secretary, had accused the Treasury of being "unwilling" to properly fund the Defence Investment Plan (DIP), which aimed to modernize the military and reverse the "hollowing out" of the armed forces.
- Healey was offered an extra £13.5 billion, which he claimed was only a 0.08% increase in the defence budget, and in reality, amounted to only £10 billion, with the rest being "Treasury Trickery".
- According to calculations by the Office for Budget Responsibility (OBR), reaching the 3% threshold will demand an additional £17.3 billion per year by 2029-30, requiring the overall defence budget to rise from over £63 billion to closer to £90 billion by 2030.
- A revised DIP published following Healey's resignation still had a £5 billion black hole, with key plans to transform the military with drones, uncrewed warships, and aircraft remaining underfunded.
- Healey, as Chancellor, will have the opportunity to set out a plan to increase defence spending to 3% of GDP, which, if fulfilled, would provide positive news for his successor as Defence Secretary.