Britain insists Falklands 'will remain British' after US threatens to withdraw sovereignty support over defence spending


The British government has declared the Falkland Islands "are and will remain a British Overseas Territory" after US officials warned Washington could withdraw its diplomatic backing for UK sovereignty unless Britain sharply increases defence spending. A senior Pentagon official said that "nothing is being ruled out" to force NATO allies into greater burden-sharing, with Britain set for "special attention." Chancellor John Healey confirmed his October Budget will not set a date for hitting 3 per cent of GDP on defence, a decision already drawing fury from allies and opponents alike. The US currently holds official neutrality on Falklands sovereignty while recognising British administration — but that stance is now explicitly on the table.
Healey resigned as Starmer's defence secretary in June, saying the Treasury was 'unwilling to commit the resources the nation needs.'
Trump's team reportedly considers the UK's June defence investment plan a 'step in the right direction' — but insists that 'isn't enough' given current threats.
Critics have branded Healey a 'sell out' and 'hypocrite' for shelving the 3 per cent target after making it a resignation issue under Starmer.
