Financial Times reports Chancellor John Healey will use his October budget to
pause the pledge to raise defense spending to 3% of GDP by 2030 and defer
difficult funding decisions for the armed forces. Healey had argued 3% by 2030
as a milestone toward NATO's 3.5% target by 2035; that aim is now uncertain. The
budget will prioritize closing an almost £5bn defense equipment funding gap left
by former prime minister Starmer, government sources said. Institute for Fiscal
Studies researcher Bee Boileau estimates lifting to 3% by 2030 would require
roughly an extra £10bn a year at current prices; reaching 3.5% would need about
£25bn. Under current plans UK defense spending is projected at 2.7% of GDP by
2030.
