Healey must tackle inflation and defence

By the Editorial Team · Wednesday, October 21, 2026

The Conservative Party has called on Chancellor John Healey to prioritize reducing inflation and clarify defence spending plans ahead of the upcoming Budget. They argue that unchecked inflation and rising welfare costs are straining household budgets, while urging the government to meet defence spending targets by 2030 to strengthen national security.

The Conservative Party has urged Chancellor John Healey to address rising inflation and defence spending ahead of the upcoming Budget. With inflation currently at 3.1%, above the Bank of England’s 2% target, there are concerns that prices could climb to 4% by next summer, placing additional strain on household budgets.

The Tories criticized the Labour government’s economic policies, asserting that inflation is eroding family finances and increasing living costs. Shadow Environment, Food and Rural Affairs Secretary Victoria Atkins highlighted the impact on ordinary consumers, warning that continued inflation would make everyday essentials more expensive and reduce the value of savings. She also pointed to Labour’s tax increases and regulatory burden as factors driving up costs for businesses, particularly in the farming and retail sectors. Atkins further claimed that the government’s increased welfare spending is exacerbating fiscal pressures.

Kemi Badenoch, the Conservative Party leader, called on Healey to reduce welfare expenditure and cut government borrowing in the forthcoming Budget. She also criticized the Chancellor for delays in clarifying plans to raise defence funding. Healey previously resigned as Labour’s Defence Secretary amid disagreements over military spending, advocating for Britain to allocate 3% of its economy to defence by 2030.

Now serving as Chancellor under Mayor Andy Burnham, Healey is expected to outline a defence funding trajectory in next year’s spending review. This plan is anticipated to aim for NATO’s target of 3.5% of GDP on defence by 2035, with an interim goal of reaching 3%. Badenoch pressed Healey to demonstrate progress toward this 3% target in the imminent Budget, describing any failure to do so as requiring substantial explanation.

She emphasized that the additional funds needed to meet the 3% defence spending threshold are less than one-third of the increase in welfare expenditure since Labour took office. The debate over balancing inflation control, welfare costs, and defence funding is set to feature prominently as the government finalizes its financial plans for the coming year.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.