Wes Streeting, the United Kingdom’s defence secretary, underlined the government’s commitment to prioritising increased defence spending as part of a broader economic strategy at the Farnborough International Airshow on July 26. Speaking in a keynote address, Streeting promised to provide the arms industry with “clarity and confidence,” signalling a shift from the internal disputes that previously unsettled Labour's leadership under Keir Starmer.

Although Streeting refrained from announcing specific new financial allocations, he emphasised that any rise in defence budgets would come with “an opportunity cost across government,” highlighting the necessity for the Ministry of Defence (MoD) to demonstrate effective use of existing funds. The defence secretary described his portfolio as one he sought upon returning to government after resigning as health secretary in May, marking a clear prioritisation of defence within the current administration.

The commitment to boost defence spending was initially outlined by Prime Minister Andy Burnham in his first speech as PM, where he pledged to increase defence expenditure from the current 2.6% of gross domestic product (GDP) to meet the NATO target of 3.5% by 2035. This escalation implies a real-terms uplift of more than £25 billion within the coming decade. Burnham framed the defence investment as a driver of UK reindustrialisation, stating the plan would “transform people’s lives” while fulfilling the country’s international obligations.

The last time UK defence spending reached 3.5% of GDP was in the early 1990s, shortly after the Cold War, but heightened concerns over Russian aggression, rising geopolitical competition from China, and pressure from the United States on European NATO members have prompted a reassessment of defence priorities.

The appointment of former defence secretary John Healey as chancellor underscores the Treasury and No 10’s alignment with the Ministry of Defence in rebalancing economic focus toward defence, diverging from traditional Labour emphases on health and education. Healey had resigned from Starmer’s government last month amid disagreements over defence budgets, criticizing the former leader for failing to commit credibly to the NATO spending targets by decade’s end.

In his resignation letter, Healey called for a “headmark date for 3% of GDP on defence in 2030,” pointing out that Starmer’s plans fell short, targeting only 2.7% for that year despite public assurances of prioritising defence. Healey’s installation as chancellor has sparked debate about whether Labour might revisit previously agreed spending frameworks and potentially increase defence funding by approximately £9 billion annually by 2030.

When pressed on whether the government aimed for the 3% target by 2030, Streeting declined to provide a direct answer, deferring to the chancellor’s forthcoming budget and spending review but reaffirming his own firm stance on defence investment.

During the event, Streeting also unveiled a new British prototype “loyal wingman” drone, developed and assembled by BAE Systems in Lancashire. The unmanned aerial vehicle is designed to operate alongside Typhoon fighter jets, enhancing surveillance and combat capabilities as part of a coordinated aerial system.

Streeting’s remarks extended beyond defence planning to include a critique of Israel’s actions in Gaza and the West Bank. He reaffirmed comments made in a 2025 WhatsApp exchange with Peter Mandelson, accusing Israel of falling short of conduct standards and “committing war crimes before our eyes.” While strongly supporting Israel’s right to self-defence, Streeting insisted that Israel must be held to the same scrutiny as the UK, reflecting his position that the country’s recent military operations exceeded acceptable boundaries.

Critics of the government’s defence spending approach caution that increased military expenditure may not be the most efficient means of job creation or economic growth. Some reports suggest that cuts to infrastructure spending to offset defence investments could result in significant job losses, while investments in sectors like health may yield greater economic returns per pound spent.

Nonetheless, Streeting portrayed the planned defence investment as a historic opportunity under Burnham’s leadership, signalling a clear reorientation of the UK’s fiscal and strategic priorities.