Defence Secretary John Healey resigned on Thursday after months of tense negotiations with Downing Street over defence funding, leaving Prime Minister Keir Starmer without a strategy less than a month before a critical Nato summit. Healey’s departure comes amid an unresolved row with Donald Trump over defence spending and as the US threatens renewed strikes on Iran.
At the heart of the dispute was Starmer’s offer of just £2 billion extra for the Ministry of Defence by 2030, equivalent to 0.08% of GDP. Healey had pressed for a settlement consistent with the prime minister’s earlier commitments to Nato allies, including a pledge to lift UK defence spending from 2.6% of GDP in 2027 to 3.5% by 2035. In his resignation letter, Healey described the offer as falling “well short of what is required for defence and the country,” warning it would breach the Nato commitment made a year ago.
The spending row has also cast doubt on major programmes including the £41 billion Dreadnought submarine replacement for Trident and the Aukus nuclear-powered submarine project with Australia and the US. Australian officials visiting Portsmouth naval base on Thursday saw their planned media event cancelled after Healey’s resignation became public, further straining an already delicate alliance. A former Australian foreign minister told an inquiry that the UK’s defence-industrial base is under “extraordinary stress,” questioning its ability to meet project timelines.
Starmer, who in February said Britain “needs to go faster” on defence, had also promised to lead peacekeeping deployments in Ukraine and secure the Strait of Hormuz if a ceasefire holds. Defence sources said the Treasury wanted the MoD to plan for only 3% of GDP, not the 3.5% promised to allies. Downing Street had attempted to force Healey to publish the defence investment plan on Thursday, but he refused, opting instead to resign. The prime minister now faces a Nato summit with no defence secretary and unresolved questions about Britain’s commitment to spending targets.
