UK to set out path to NATO target in Wednesday's budget, PM says

UK Government to Outline Pathway to NATO Defence Spending Target in Budget

British Government's Defence Spending Plans and NATO Commitments

Prime Minister's Statement on Defence Funding

LONDON, Oct 26 (Reuters) - British Prime Minister Andy Burnham said on Monday his finance minister John Healey would set out this week a plan to fully fund the government's existing defence commitments alongside a pathway to hitting a 2035 NATO spending pledge.

Healey is due to deliver his first budget on Wednesday, with the defence industry looking for reassurance the government has a plan to step up defence spending.

Challenges in Meeting Defence Investment

Burnham told ITV's Good Morning Britain the first challenge his government had to meet was to fully fund the already announced defence investment plan.

"We've been working hard to do that," he said. "It's crucial that we have a funded plan that we can then implement, and we will set out more details on Wednesday as to how we've done that."

Commitment to NATO Spending Targets

Asked if the pathway set out on Wednesday would include a commitment to lift spending to 3% of GDP on defence by 2030 and 3.5% by 2035, he said: "It is, and we will set out a plan as to how we think is the right way to do that."

"We will meet our NATO commitments."

Current and Future Defence Spending Levels

Britain currently spends around 2.6% of its GDP on defence and had said it would hit the 3% target in the next parliament, with an election due at the latest in mid-2029.

NATO Members' Agreed Targets

Last year, NATO members agreed to spend 3.5% of GDP on core defence requirements by 2035, with an additional 1.5% of GDP on broader defence and security measures.

Industry Perspective on Defence Funding

In order to have credibility with allies and investors, the defence industry wants Britain to set out a steady increase in defence spending, rather than pushing it back to beyond 2030.

(Reporting by Sam Tabahriti; Editing by Kate Holton and Elizabeth Piper)