Chancellor John Hiley used his first budget to plug a £5 bln shortfall in the UK defence investment plan by reprioritising capital spending across government departments. He did not commit to raising defence spending to 3% of GDP by 2030. Hiley resigned as defence secretary in June after then-PM Keir Starmer declined to make that 3% pledge; the shortfall was inherited by Hiley and incumbent PM Andy Burnham.

2026-10-28

Chancellor John Hiley used his first budget to plug a £5 bln shortfall in the UK defence investment plan by reprioritising capital spending across government departments. He did not commit to raising defence spending to 3% of GDP by 2030. Hiley resigned as defence secretary in June after then-PM Keir Starmer declined to make that 3% pledge; the shortfall was inherited by Hiley and incumbent PM Andy Burnham.