Treasury yet to do due diligence on finding extra money for UK’s Nato spend
Summary
The UK Treasury has not yet studied how to fund the plan to increase defence spending to 3.5% of GDP as promised to NATO. Officials said decisions on funding will be made by the next prime minister, and the government currently targets 3% defence spending by the next parliament.Key Facts
- The UK promised NATO to spend 3.5% of GDP on defence by 2035.
- The Treasury has done no detailed analysis on how to pay for this increase.
- Funding decisions and trade-offs will be left to the next prime minister and future government.
- The government aims to reach 3% defence spending in the next parliament.
- Recent defence secretary John Healey resigned partly due to unclear future defence funding plans.
- Additional billions will need to come from budget cuts or new taxes, possibly requiring public agreement.
- The Defence Investment Plan adds £15 billion over four years, raising spending to 2.7% of GDP.
- Treasury and Ministry of Defence officials said their working relationship has improved recently.
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