Healey to unveil billions in defence spending at Budget amid questions over how 3% target will be funded
Chancellor John Healey is expected to pump billions into defence on Wednesday, channelling the cash through the National Wealth Fund and British Business Bank. The money will come from long-term borrowing, which ministers argue stays within Labour's fiscal rules. The Budget announcement comes after an advisor's resignation warning of a 'Liz Truss-style crisis'. Britain currently spends around 2.6% of GDP on core defence.
Shadow chancellor Andrew Griffith issued a resign-or-deliver ultimatum on Saturday over how Healey plans to reach his 3% spending goal.
Healey had previously promised to map out the route only at the 2027 spending review.
Every Nato ally has signed up to spending 3.5% of GDP on defence by 2035.
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