Labour Silent on Defense Spending Target to Avoid Market Volatility, Admits Streeting

Labour is deliberately withholding a specific timeline for increasing defense spending to 3% of GDP to prevent alarming financial markets and driving up borrowing costs, according to Defence Secretary Wes Streeting. He acknowledged that announcing an arbitrary deadline without a concrete plan for funding would inevitably lead to higher borrowing expenses, particularly given the UK's current public debt.

Streeting made these remarks at a Fabian Society event during the Labour Party Conference. He explained that while there is a temptation to demand a fixed date for achieving the 3% defense spending target, his colleague John Healey, the Shadow Chancellor, has a dual responsibility to national security and to managing public finances responsibly. "If tomorrow he were to set out a specific date and deadline without showing how we would pay for it, the only consequence would be that the cost of borrowing goes up," Streeting stated. He added that such a move would set the country back further, given its existing public debt liability.

Details on the timing and funding for increased defense spending are expected to be revealed in the upcoming Budget and subsequent spending review. The UK has committed to a NATO pledge of allocating 3.5% of national income to defense by 2035. The current government has budgeted to raise defense spending to 2.7% by 2027-28, but the timeline for reaching 3% by 2030 remains unspecified.

There is growing pressure from former military leaders and opposition figures for the government to outline its strategy for increasing investment in the UK's armed forces. Earlier in September, Andy Burnham rejected proposals to reallocate funds from benefits, asserting that national security should not come at the expense of social security.

In related comments, Streeting appeared to dismiss the possibility of a future bid for Labour leadership, stating that "that ship has sailed." He expressed no regrets about his resignation from Sir Keir Starmer's Cabinet, viewing it as a necessary action that has been vindicated by subsequent events. He described his current position as liberating, as he is no longer pursuing the leadership for the first time since his teenage years. Streeting also denied any agreement with Burnham regarding his defense portfolio, emphasizing that he did not seek or lobby for a specific job.