Treasury sees defence as a drain not a driver for growth, says Healey
Summary
Former defence secretary John Healey said the UK Treasury does not see defence spending as a way to boost economic growth. Healey resigned over disagreements about the country's military spending plans, especially the target to spend 3% of GDP on core defence by 2030.Key Facts
- The UK Treasury views defence spending as a cost, not a driver of economic growth.
- John Healey quit his cabinet role because he wanted higher defence spending than planned.
- The current Defence Investment Plan (DIP) is £15 billion, but £4.7 billion is not yet funded.
- The UK pledged to spend 3.5% of GDP on Nato-qualifying defence by 2035 and 3% by 2030, according to Healey’s view.
- The government’s current plan aims for about 2.7% of GDP on defence by 2030, below Healey’s target.
- Healey believes defence spending can help create jobs and support new technology industries.
- Opposition leader Sir Keir Starmer announced increased defence funding, but Conservatives criticized unfunded parts of the plan.
- Former PM Gordon Brown’s cabinet colleague Andy Burnham is expected to prioritize defence spending and reindustrialization.
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