10 reported1 unconfirmed
Defence Secretary Wes Streeting stated that increased defence spending would make “an enormous contribution” to economic growth, emphasizing that the military will be a spending priority for Prime Minister Andy Burnham’s government over other departments. Speaking at the Farnborough airshow, Streeting did not make extra financial commitments but promised to give the arms industry “clarity and confidence” in contrast to the row that contributed to the fall of Keir Starmer. He acknowledged that spending more on defence would come at “an opportunity cost across government,” meaning the Ministry of Defence must show it is spending existing resources wisely. Burnham recommitted the UK to lifting defence spending from 2.6% of GDP to the NATO target of 3.5% by 2035, implying a real-terms increase of more than £25bn in less than a decade. Streeting also criticized Israel for having “fallen short” in its conduct during the war in Gaza and in operations in the West Bank. The appointment of former defence secretary John Healey as chancellor suggests strong alignment between No 10 and the Treasury in rebalancing the UK economy towards defence, a shift from traditional Labour priorities of favouring health and education spending.
What’s reported
Wes Streeting said increased defence spending would make “an enormous contribution” to economic growth.
Streeting promised the arms industry “clarity and confidence” in contrast to the row that contributed to the fall of Keir Starmer.
Spending more on defence would come at “an opportunity cost across government,” Streeting said.
Burnham recommitted the UK to lifting defence spending from 2.6% of GDP to 3.5% by 2035, implying a real-terms increase of more than £25bn in less than a decade.
UK defence spending was last at 3.5% of GDP in the early 1990s.
Streeting criticized Israel for having “fallen short” in its conduct during the war in Gaza and in operations in the West Bank.
John Healey was appointed chancellor after quitting Starmer’s government over a row on defence spending.
Healey’s resignation letter said the UK must set “a headmark date for 3% of GDP on defence in 2030.”
Streeting unveiled the first British prototype “loyal wingman” drone, designed by BAE Systems in Warton, Lancashire, costing about £15m.
Critics say military spending is an inefficient way to create jobs relative to other forms of state spending.
Open questions
Whether Labour’s new leadership team wants to hit 3% of GDP on defence by 2030, as Streeting dodged questions on this.
Key figures
Wes Streeting, defence secretary
Andy Burnham, prime minister
John Healey, chancellor
Keir Starmer, former prime minister
Dan Jarvis, former defence secretary who lasted less than six weeks
Peter Mandelson, mentioned in WhatsApp exchange
Sources: The Guardian