The UK military expects Chancellor Healey to commit to raising defense spending
to 3% of GDP by 2030, despite criticism he has backtracked on earlier promises.
Officials said the Treasury informed military leaders weeks ago it could not
include the pledge in the Oct. 28 budget and that a final decision will be taken
at the multi-year spending review in 2027. After discussions with Healey,
sources expect a target date of 2030 to be set. Defense spending currently
equals 2.6% of GDP; the Office for Budget Responsibility estimates a rise to 3%
would cost about £15 billion a year, equivalent to roughly a two
percentage-point increase in the basic income tax rate. How the additional
spending would be funded remains unclear.
