UK Chancellor Healey plans to shelve the target of defense spending accounting for 3% of GDP, prioritizing filling the equipment funding gap.

(1) According to the Financial Times, Chancellor Healey will temporarily shelve the goal of raising defense spending to 3% of GDP by 2030 in his first budget to be announced in October and defer tough decisions regarding military funding. Healey had previously advocated for the 3% goal as a milestone toward achieving NATO's 3.5% target by 2035, but this stance is now filled with uncertainty. (2) Government insiders stated that Healey's budget will focus on filling the nearly £5 billion defense equipment funding gap left by former Chancellor Starmer rather than driving new spending expansions. (3) The Institute for Fiscal Studies estimates that raising defense spending to 3% of GDP by 2030 would require approximately an additional £10 billion per year at current prices; if it were to be further increased to 3.5%, an extra £25 billion would be needed. According to current plans, by 2030 UK defense spending will reach 2.7% of GDP, still a significant gap from the 3% target.