Labour's Defence Secretary Wes Streeting has acknowledged the party cannot commit to a target of spending 3% of GDP on defense by 2030, citing a lack of clarity on how such an increase would be funded. Streeting declined multiple times to guarantee the commitment would be met by the end of the current parliament.
Streeting emphasized the importance of fiscal discipline, stating that setting spending targets without outlining funding mechanisms can lead to uncertainty, damage market confidence, and increase borrowing costs. "People will know how strongly the Chancellor feels about that. [But] those are conversations for future spending reviews," he told the BBC's Today programme. He added, "Let's say, for argument's sake, I just said 'Yes, we will by 2030 meet 3 per cent.' The inevitable next question is how will you fund it?"
This stance contrasts with earlier indications of prioritizing defense. John Healey, now Chancellor of the Exchequer, previously advocated for a 3% GDP defense spending target by 2030 during his tenure as defense secretary. Streeting had initially welcomed Healey's return to government, suggesting the Armed Forces had a "firm friend" in the Treasury.
The government has announced an £8.4 billion investment to secure the UK's nuclear deterrent, including funding for new Dreadnought-class submarines. The first of these submarines is expected to enter service by the mid-2030s, replacing the current Vanguard-class vessels. Prime Minister emphasized that the production of these submarines in Barrow would protect Britain and support thousands of jobs and apprenticeships.
However, critics have voiced concerns about the party's commitment to overall defense spending. Conservative defense spokesman James Cartlidge noted that the current Defence Investment Plan only projects spending to reach 2.68% of GDP by 2030. Business leaders, including BAE Systems chief executive Charles Woodburn, have called for a clear pathway to meet NATO's spending obligation of 3.5% by 2035. Former head of the Royal Navy, Admiral Lord West, criticized the party's leadership for what he described as "smoke and mirrors" on defense funding, stating that a commitment to 3% by 2030 and meeting the spending requirements for operational costs would be more meaningful.
General Sir Richard Barrons, involved in a previous strategic defense review, accused the Prime Minister of using the submarine announcement as a "smokescreen" to avoid addressing broader defense spending challenges. He warned that increased spending is necessary to credibly deter Russia by 2030, stating that the issue would not disappear by being ignored.
