UK to Announce Roadmap for Achieving Higher Defence Spending by 2035
British Finance Minister Outlines Defence Spending Plans
LONDON, Sept 1 (Reuters) - British finance minister John Healey told The Times newspaper he would set out a "clear path" to higher defence spending at the government's spring spending review, amid speculation over when the country will reach NATO targets.
Commitment to NATO Defence Spending Targets
"For the first time at the spending review, we will set out a clear path about how we will meet that NATO commitment in 2035, of 3.5% of GDP," he told the newspaper at the G20 summit in North Carolina.
Setting the 3% GDP Target Date
"And as part of setting out that clear path, we will set that target date for 3%."
Background on John Healey's Role and Previous Targets
Healey, in post as finance minister since July, quit his previous role as defence minister in the last government after he failed to secure funding for defence spending to reach 3% by 2030, a target he said Britain "must set" given the "dangerous time".
Upcoming Budget and Fiscal Commitments
He will hold his first budget on October 28 and has pledged to stick to the borrowing rules he inherited from his predecessor Rachel Reeves.
Financial Implications and Funding Gaps
Defence will be "central to the spending review" next year, Healey said in the Times interview on Tuesday.
Projected Costs and Budgetary Requirements
According to Britain's Office for Budget Responsibility, reaching 3% by 2030 would cost the government an additional £17.3 billion ($23.4 billion). To meet the requirements of the existing Defence Investment Plan, Healey needs to fill a £4.7 billion funding gap.
Exchange Rate Information
($1 = 0.7386 pounds)
(Reporting by Sarah Young, Editing by Paul Sandle)
