Chancellor John Healey has been told he must resign if he fails to set out how Britain will invest 3% of GDP in defence by 2030 in Wednesday's Budget. The demand comes from the Conservatives, who are urging him to "follow his own principles and resign" if he cannot provide a "credible pathway" to the funding target.
Pressure Mounts on Chancellor
Mr Healey helped bring down Sir Keir Starmer when he quit as Defence Secretary in June in protest at the underfunding of the military. He is now under mounting pressure to ensure the UK can deter the threat from Russia.
Labour MPs, including Andy Burnham and the Chancellor, are also facing pressure. Tan Dhesi, who chairs the defence select committee, last month warned the Prime Minister against "kicking the can down the road" and called for him to "urgently commit" to 3% funding.
On Thursday, the cross-party committee warned of "glaring gaps" in Britain's ability to confront foes in the Arctic, stating that a shortage of warships and submarines left energy supplies and undersea cables exposed.
Conservative Demands
The Tories warn Mr Healey is now "responsible for the very Treasury decisions he previously condemned." This comes days after the Government urged families to "be ready" for disruptions caused by national emergencies, advising households to stockpile three days' worth of food and water.
Conservatives accuse the Government of "completely missing the fact that it is Labour's decisions that have left us unprepared and exposed to crises abroad."
Shadow Chancellor Andrew Griffith said: "By the end of his Budget statement, John Healey must have fully funded 3% defence spending, or resign. We are living in an era of extraordinary threats, and yet the Chancellor is dithering over finding the money to pay the country's insurance premium. No firm would be left unscathed by a serious attack on UK soil. It's time for John Healey to get a grip, because you cannot have a strong economy without a strong defence."
Shadow Defence Secretary James Cartlidge warned that failure to set out a plan for 3% defence funding would be a "dereliction of duty." He said: "In an increasingly uncertain and dangerous world, with threats growing on multiple fronts, we need to get serious about funding defence and make the tough choices needed to protect our national security. That means cutting welfare spending and investing billions into improving our defensive capability. Yet Burnham continues to prioritise a ballooning benefits bill over our national security."
The Conservatives say hitting the target involves finding an extra £10billion a year for defence, achieved through "difficult decisions" including "reforming housing benefit" and "reinstating the two-child benefit cap."
Treasury and Government Response
A Treasury source said that in Mr Healey's first interview as Chancellor he said "the first duty of any government is to keep the country safe and protect our citizens."
Defence Secretary Wes Streeting responded: "The public must be sick and tired of the Tories complaining about things they never did. They owe Britain an apology, not another lecture. Kemi Badenoch's Conservatives shrunk the British Army to its smallest size since the Napoleonic era and left a £17billion hole in the equipment plan. Their fantasy economics won't keep Britain safe – just as their reckless hollowing out of our armed forces didn't when they were in power. Andy Burnham has made it clear that his Labour Government is determined to give our Armed Forces the investment needed to keep us safe. In just two years, Labour has delivered the biggest sustained increase in defence spending since the Cold War, with funding already higher than at any point during 14 years of Conservative government."
Separately, Mr Healey plans to announce a crackdown on tax dodgers who hide their wealth in overseas property in Wednesday's Budget, a move he hopes will raise more than £100million. He wants Britain to sign up to a new international agreement which will see property ownership information automatically shared between 25 jurisdictions including France, Germany and Spain.
A Treasury spokesperson said: "It's simply not fair that honest taxpayers play by the rules while others hide wealth overseas to avoid paying what they owe. The Chancellor is closing the net on tax dodgers and making sure everyone pays their fair share."
