Tories tell Chancellor John Healey to resign if his Budget fails to fund the 3% defence target he quit the MoD over

Shadow Chancellor Andrew Griffith accused John Healey of 'dithering' over 'the country's insurance premium' in an era of 'extraordinary threats'. Healey quit as Sir Keir Starmer's defence secretary in June, demanding 3% of GDP by 2030. As Chancellor, he now says the timetable will wait until next year's spending review. The OBR estimates hitting 3% needs an extra £17.3 billion in 2029-30.

Healey is expected to borrow billions for defence in Wednesday's Budget, but the target will be delayed.

Wes Streeting hit back: Tories 'owe Britain an apology, not another lecture'.

City experts predict £70billion of extra borrowing, with Healey's buffer halved to £12billion.