Healey is accused of a 'shameless tax raid' as he plots a 'green tax' on imported fuel in Wednesday's Budget
From the Newshound archive · first published 25 October 2026.
John Healey is expected to raise the bank profits levy from 3% to as much as 8%, with the tax burden forecast to hit its highest level since 1948 in 2028.
Shadow Chancellor Andrew Griffith accused John Healey of 'dithering' and called on him to commit fully to 3% of GDP on defence before his speech ended — or step down. Healey had resigned from Sir Keir Starmer's cabinet as defence secretary in June, with the 3% target by 2030 as his central demand. He is now expected to push the timetable back to next year's spending review. The OBR says hitting 3% would need an extra £17.3bn in 2029-30.
Healey is expected to borrow billions through the National Wealth Fund, backing drone and AI firms.
Defence Secretary Wes Streeting hit back: the Tories 'owe Britain an apology, not another lecture'.
Streeting told Nato allies — Donald Trump among them — that Britain will 'lead from the front'.
