New defence secretary to ‘reprioritise’ UK plan for military spending, say sources | Dan Jarvis
New UK Defence Secretary Dan Jarvis is reviewing the controversial Defence Investment Plan (Dip) following the resignation of John Healey. Multiple government sources report Jarvis may demand more funding from the Treasury to address a major funding gap, with a new proposal due by the Nato summit in Ankara in early July.
Why did John Healey resign as defence secretary?
John Healey resigned on Thursday after refusing a funding settlement that he claimed failed to give armed forces the resources they need. According to Healey, Downing Street offered £13.5bn to fill an £18bn gap in major defence project funding.
Healey accused the Treasury of being unwilling to provide necessary funds amid rising threats. He specifically cited concerns that Prime Minister Keir Starmer was not embracing a Nato target of 3.5% of GDP spending by 2035.
While Starmer offered an extra £2bn to bring spending to 2.68% by 2030, Healey argued the government lacked a credible plan to reach 3% of GDP by 2030.
How will Dan Jarvis handle the funding gap?
Multiple government sources state Jarvis will look to “reprioritise” the Dip, which is now delayed until July. An ally of Jarvis indicated the new secretary has a strong negotiating position with Keir Starmer, stating the Prime Minister cannot easily sack him or allow him to resign.
Some senior sources suggest Jarvis may find funds by axing projects that Healey refused to cut. However, Culture Secretary Lisa Nandy told the BBC on Sunday that discussions are “ongoing” and her department is talking with the Treasury about finding additional sums.
This approach faces internal resistance. Cabinet ministers told the Guardian they are reluctant to reopen spending settlements, with some citing “red lines” regarding capital project investments they will not cut.
What are the international implications of the defence row?
The funding dispute casts a shadow over the G7 summit in France on Monday, where leaders will discuss threats from Russia and Iran. Starmer has already spoken with US President Donald Trump and Nato Secretary General Mark Rutte regarding the situation.
Downing Street confirmed Starmer told Rutte the UK would spend 3% of GDP on defence by the end of 2034. Meanwhile, Japanese Prime Minister Sanae Takaichi visited Downing Street on Sunday to discuss the Gcap next-generation fighter jet project.
Japanese sources indicated a desire for the UK to sign an international contract committing to the project by the end of the month. This comes as the Treasury and No 10 have previously asked for increased spending on drones and autonomous ships.
What happens next for the UK government?
Dan Jarvis must present an alternative investment plan by the Nato summit in Ankara in early July. A source close to Jarvis confirmed “new conversations” with No 10 and the Treasury are continuing.
Domestically, Keir Starmer faces a possible leadership challenge from Andy Burnham. The timing of this challenge may depend on the outcome of Thursday’s Makerfield byelection, potentially making the G7 summit one of Starmer’s final global meetings.
Frequently Asked Questions
Why is the Defence Investment Plan (Dip) delayed?
The plan was delayed until July following the resignation of John Healey due to disagreements over funding levels.
What was the specific funding gap cited by John Healey?
Healey stated there was an £18bn gap in the funding of major defence projects, but Downing Street only offered £13.5bn to plug it.
What is the current target for UK defence spending?
Prime Minister Keir Starmer told Nato Secretary General Mark Rutte that the UK would spend 3% of GDP on defence by the end of 2034.
Do you believe the UK should prioritise autonomous technology over traditional capital projects to bridge the defence funding gap?