UK finance minister to outline plan for higher defence spending

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British finance minister John Healey announced that the government would define a clear path toward increasing defense spending to 3% of GDP during the upcoming spring spending review. Healey, who assumed his role in July, stated that this plan would also establish a target to reach the NATO commitment of 3.5% of GDP by 2035. This initiative follows his previous advocacy for a 3% target by 2030, a goal he was unable to secure while serving as defense minister in the prior government.

Consequences

To implement these targets, the government must address a £4.7 billion funding gap in the existing Defence Investment Plan and account for the substantial costs associated with raising defense expenditure, which the Office for Budget Responsibility previously estimated at £17.3 billion to reach 3% by 2030. Healey is scheduled to present his first budget on October 28 while maintaining the borrowing rules inherited from his predecessor, Rachel Reeves.

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