Conservative leader Kemi Badenoch has proposed significant welfare cuts aimed at bolstering defense spending to three percent of the UK's Gross Domestic Product (GDP) by the end of the decade. This plan, outlined on September 2, 2026, includes a £10 billion package of savings to fund the investment, which Badenoch argues is crucial for national security.
Badenoch's proposal directly challenges current government policy and puts pressure on Chancellor John Healey and others to commit to similar spending levels. Healey himself resigned from a previous role as defense secretary in June over the refusal by then-leader Sir Keir Starmer to commit to the three percent target, which Healey deemed the minimum necessary for national safety. However, neither Healey nor current leader Andy Burnham have definitively stated their willingness to fund such an increase.
The Prime Minister has reportedly avoided direct commitments on increasing defense expenditure, despite escalating threats from Russia and internal pressure from Conservative MPs. Badenoch stated that defense is a government's primary duty and that the Conservatives will prioritize it, citing welfare cuts and the restoration of the two-child benefit cap as funding mechanisms.
"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," Badenoch commented.
This move by Badenoch intensifies scrutiny on the Prime Minister and Healey to allocate funds for accelerated defense spending amidst a backdrop of rising international tensions. Tan Dhesi, Labour chairman of the cross-party Commons defense committee, has criticized Burnham's administration for deferring a decision on defense spending until the next year's comprehensive spending review, accusing him of delaying action.
Dhesi emphasized the need for immediate investment in the armed forces, stating, "Defence is definitely one area where vibes alone just will not be enough. Rather than kicking the can down the road… will the Prime Minister urgently commit to charting a pathway to reaching three per cent of GDP being spent on defence by 2030?"
Burnham responded to Dhesi, asserting a commitment to defense funding, but Downing Street later clarified a more tentative target of 3.5 percent by 2035. This comes as Russia has issued threats to the West, with recent incidents including a reported drone attack on Leipzig airport, allegedly by Russia. Intelligence assessments suggest Russia could pose a threat to a NATO country by 2030.
Britain's defense spending has reportedly declined relative to other NATO members in recent years. Under current Labour plans, spending is projected to increase from 2.6 percent to 2.7 percent by the end of the decade, falling behind countries like Germany and Poland, which are expected to spend 3.5 percent and 4.7 percent respectively by 2030.
Badenoch's proposed savings include at least £4 billion annually from housing benefit reforms, £3.1 billion from reinstating the two-child benefit cap, and £1 billion from ending VAT exemptions for Motability vehicles. Additional funds would reportedly come from scrapping the Chagos Islands agreement and redirecting money from wind farm projects and civil research and development.
The issue of defense funding is emerging as a significant early test for Burnham's administration. Healey's prior resignation in June over the three percent target, when Rachel Reeves was Chancellor, highlights the ongoing debate within the party about defense expenditure commitments.
In response to queries, Burnham stated on September 2, 2026, that he appointed the current Chancellor precisely because of his strong commitment to national defense and that the defense investment plan would be fully funded. Badenoch, however, has urged for a more immediate and serious approach to national defense.