Kemi Badenoch, leader of the Conservative Party, has outlined plans to increase the United Kingdom’s defence spending to 3 percent of GDP by 2030 through significant cuts to welfare programs. In a speech delivered this week, Badenoch committed to raising an additional £10 billion annually for defence by the end of the current parliamentary term. The funding strategy includes reforms to housing benefits, reimposing the two-child benefit cap, and ending certain tax exemptions.
Specifically, the Conservatives propose to save £4 billion by reforming housing benefits and £3.1 billion by reinstating the two-child benefit cap. Additional measures include stopping a £1 billion annual funding increase to the British Business Bank, removing VAT exemptions on Motability vehicles to save around £1 billion, reallocating £2.75 billion from the National Wealth Fund to a new national defence and resilience bank, transferring £2 billion from the civilian research and development budget into defence spending, and generating £200 million annually by reversing a recent deal related to the Chagos Islands.
Badenoch directly challenged Prime Minister Andy Burnham and Chancellor John Healey, urging them to adopt similar measures to adequately fund the Armed Forces. She referenced Healey’s resignation as Defence Secretary earlier this year over concerns that government spending plans were insufficient to meet defence demands, emphasizing the need to protect national security.
Burnham, who became Prime Minister in July, has stated that he is committed to reaching the 3 percent defence spending target but has yet to present a clear plan on how to achieve it. During his first Prime Minister’s Questions, Tan Dhesi, a Labour MP and chair of the Commons Defence Select Committee, cautioned that “vibes alone” would not ensure national safety amid increasing security threats, especially given shifting priorities in U.S. leadership on European security. Dhesi urged the Prime Minister to outline a concrete pathway to meet the spending target.
Government officials have indicated that a definitive timeline and funding strategy will be detailed in the upcoming 2027 spending review, rather than the Chancellor’s forthcoming Budget on October 28. This timetable has drawn criticism from opposition members, with shadow defence secretary James Cartlidge accusing Burnham’s administration of lacking a plan to control the welfare bill or fund defence adequately.
Former British Army head Lord Dannatt also commented on the situation, expressing sympathy for Healey’s resignation and criticizing the current government for financial difficulties impacting defence funding.
The debate underscores ongoing tensions within government and across party lines over balancing social welfare expenditures with commitments to national security and defence investment, ahead of future negotiations on defence priorities and budgets.
