Conservative leader Kemi Badenoch has proposed significant cuts to the welfare bill as a means to increase defense spending to three percent of GDP by the end of the decade. This proposal puts pressure on Prime Minister Andy Burnham and Chancellor John Healey, neither of whom have fully committed to matching this target.
Badenoch outlined a £10 billion package of savings, which she stated is vital for national security. "The first duty of every Government is defence and the Conservatives will always put our defence first," Badenoch said. "That's why we are setting out our plans to reach three per cent on defence spending by the end of this Parliament through further cuts to welfare and restoring the two-child benefit cap."
Badenoch also criticized Chancellor John Healey, who resigned from his previous role as defence secretary in June over what he called Sir Keir Starmer's refusal to commit to the three percent target. "John Healey resigned from Keir Starmer's government saying Labour were not keeping our country safe. Now he is the Chancellor he should adopt our plans and make sure our Armed Forces have the funding they need," she added.
The Prime Minister has repeatedly faced questions on the issue amid rising international threats, including recent warnings from Russia. Badenoch's plan aims to generate substantial savings through welfare reforms. These include at least £4 billion annually from housing benefit reforms and £3.1 billion from restoring the two-child benefit cap, which was previously abolished. An additional £1 billion could be saved by ending VAT exemptions for Motability vehicles.
Further funding would reportedly come from scrapping a Chagos Islands agreement and diverting money from new windfarms and civil research and development projects. The current government's defense spending is projected to increase from 2.6 percent next year to 2.7 percent by the end of the decade. This contrasts with Germany's expectation to spend 3.5 percent by 2030 and Poland's current spending of 4.7 percent.
The issue of defense spending has become a key point of contention, with Labour's chairman of the cross-party Commons defence committee, Tan Dhesi, accusing the Prime Minister of delaying a decision. Dhesi urged for an urgent commitment to a pathway to reach three percent of GDP on defense by 2030.
In response, Burnham stated he had made a clear commitment, but Downing Street later clarified the target is a more flexible 3.5 percent by 2035. The backdrop to these discussions includes escalating tensions with Russia, with recent threats directed at the UK for its support of Ukraine. Intelligence reports suggest that Russian capabilities could pose a threat to NATO countries by 2030.