Sir Keir Starmer has insisted that a key defence funding plan 'will provide the resources our military needs to keep us safe', following the resignation of John Healey as defence secretary. Mr Healey accused the Prime Minister of failing to provide adequate funding for the Defence Investment Plan (Dip).
Healey's Resignation
Mr Healey resigned on Thursday afternoon, stating that the Prime Minister had been 'unable, and the Treasury has been unwilling', to provide sufficient funding for the Dip. The plan, originally called for by the Strategic Defence Review a year ago, has been delayed due to funding disputes.
Starmer's Response
In his reply, Sir Keir acknowledged the need to 'go further' on defence funding but emphasised that the Dip delivers 'an unprecedented increase in defence spending in a sustainable way'. He added: 'It will provide the resources our military needs to keep us safe and the clarity the British defence industry needs to plan.'
The Prime Minister also highlighted that the plan would enable strategic investments, support modernisation, and ensure spending is used wisely to back jobs and growth. He warned that extra defence spending would require 'significant reallocations of funding from across Government departments'.
Healey's Concerns
Mr Healey stated he received a financial settlement for the Dip on Monday that 'falls well short of what is required', with extra support coming after 2030 when the need for readiness is most urgent in the first two years. He said: 'After explaining to you that I would not be able to accept a Dip settlement that does not give our forces the resources they need, I am now left with no other option than to submit my resignation.'
Sources indicate the Government intended to publish the Dip on Thursday with a £13.5 billion uplift, but military chiefs deemed it insufficient. While the Government has committed to spending 3.5% of GDP on defence by 2035, Mr Healey noted the plan moves too slowly, with defence spending rising to just 2.68% in 2030 after 2.6% next year.
Impact on Readiness
Mr Healey warned that without a Dip that 'meets the moment', he would be 'forced to make decisions that would reduce the readiness of our forces and increase the risk to personnel on operations, and could make our country less safe'. Sources add that the Treasury's deal did not set a date for reaching 3% spending, attempting to push the MoD to plan for 2034/35.
An ally of Mr Healey described him as 'one of the most loyal Labour men for over 30 years' who 'only ever wanted a successful Labour government'.
