John Healey, now Chancellor after leaving the defence brief, has been urged to increase funding for the Armed Forces amid warnings that Britain is ill-prepared to defend the Falkland Islands should Argentina attempt another invasion. The pressure follows Argentine president Javier Milei reasserting his country's claim to the islands and cracking down on oil exploration there, compounded by Donald Trump's suggestion that US backing for Britain on the issue is "under review". Military analysts say the UK's current garrison could hold out only briefly, raising concerns at a moment when Healey is trying to reassure markets about the government's economic credibility.

Defence Eye analyst Tim Ripley warned the UK lacks helicopters, frigates and submarines in the region and would struggle to reinforce the islands' 120 infantry troops, four Typhoon jets and limited Sky Sabre air defences if the runway at RAF Mount Pleasant were attacked, with Britain's main options being airlift via A400M from Brize Norton or a Falklands-style naval task force reliant on Nato submarine support. Delays to Astute-class submarines mean none has been deployed south since 2024, while Argentina has bolstered its forces with 24 second-hand US-made F-16 jets from Denmark and armoured vehicles from Washington. Shadow Chancellor Andrew Griffith accused Labour of prioritising welfare spending over defence, and Reform's Robert Jenrick claimed Nigel Farage would "crush" any Argentine attempt to seize the islands, though the Ministry of Defence insisted such warnings were "baseless" and that Britain remains capable of defending the territory.