Labour Silent on Defence Spending Target to Avoid Market Instability, Admits Secretary

Labour is intentionally withholding a specific date for when defense spending will reach its 3% of GDP target to prevent unsettling financial markets and driving up borrowing costs, according to Defence Secretary Wes Streeting.

Streeting explained that announcing an arbitrary deadline without a concrete plan for funding the increase would inevitably raise the cost of government borrowing, which is already at elevated levels. He noted that the UK has committed to the NATO target of spending 3.5% of national income on defense by 2035. While the government has allocated funds to increase defense spending to 2.7% by 2027-28, specific targets for 2030 have not been detailed.

Speaking at a Fabian Society event during the Labour Party Conference, Streeting addressed the pressure to commit to a specific date. "I understand the temptation to say 'why won't you set out 3 per cent by a date now?'" he stated. He emphasized that while John Healey, who has responsibilities beyond national security including fiscal management, must balance the books, setting a premature deadline without a payment strategy would lead to increased borrowing costs. "When you have a public debt liability that we have in this country you just set yourself back," Streeting added.

Further details on the timeline for increased defense spending are expected to be revealed in the upcoming Budget and spending review. There has been growing public and political pressure from former military leaders and opposition figures for the government to outline its strategy for boosting the UK's Armed Forces.

In related comments, Streeting also appeared to rule out any future bid for Labour leadership, stating that "that ship has sailed." He expressed no regrets about his previous resignation from Sir Keir Starmer's Cabinet, suggesting it was a necessary action that has been vindicated by subsequent events. He clarified that his decision was not a matter of "for now," but a definitive stance. Streeting also refuted claims that he secured his current defense position through any agreement with Andy Burnham, stating he did not lobby for or make a deal for the job.