Labour withholds defence spending timetable amid borrowing cost concerns
Labour is withholding a timetable for raising defence spending to 3 per cent of GDP, with Wes Streeting saying an unfunded deadline could unsettle financial markets and increase borrowing costs. The Government has pledged to reach 3.5 per cent of national income by 2035, but has not confirmed whether it will achieve 3 per cent by 2030.
Defence spending is expected to rise to 2.7 per cent by 2027–28, with further details due in the Budget and next spending review. The decision comes as gilt yields and wider borrowing costs have risen, while former military leaders and opposition politicians demand greater clarity; Streeting also said he had no immediate plans to seek the Labour leadership.
- Labour has not set a date for reaching 3 per cent defence spending.
- Streeting warned an unfunded deadline could raise borrowing costs.
- Further details are expected in the Budget and spending review.
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Originally published by Daily Mail as “Labour silent on when it will hit defence spending target to avoid spooking the markets and sending borrowing costs spiralling, admits Streeting”.