LONDON, Sept 1 (Reuters) – British finance minister John Healey told The Times newspaper he would set out a “clear path” to higher defence spending at the government’s spring spending review, amid speculation over when the country will reach NATO targets.
“For the first time at the spending review, we will set out a clear path about how we will meet that NATO commitment in 2035, of 3.5% of GDP,” he told the newspaper at the G20 summit in North Carolina.
“And as part of setting out that clear path, we will set that target date for 3%.”
Healey, in post as finance minister since July, quit his previous role as defence minister in the last government after he failed to secure funding for defence spending to reach 3% by 2030, a target he said Britain “must set” given the “dangerous time”.
He will hold his first budget on October 28 and has pledged to stick to the borrowing rules he inherited from his predecessor Rachel Reeves.
Defence will be “central to the spending review” next year, Healey said in the Times interview on Tuesday.
According to Britain’s Office for Budget Responsibility, reaching 3% by 2030 would cost the government an additional £17.3 billion ($23.4 billion). To meet the requirements of the existing Defence Investment Plan, Healey needs to fill a £4.7 billion funding gap.
($1 = 0.7386 pounds)
(Reporting by Sarah Young, Editing by Paul Sandle)
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