Starmer admits he must 'turn things around' as US adds to pressure over defence spending

Defence secretary quits over spending row

Keir Starmer acknowledged on Friday that he needed to “turn things around” after the resignation of defence secretary John Healey, who accused the prime minister of putting national security at risk. Healey quit on Thursday, saying Starmer had failed to stand up to chancellor Rachel Reeves and had not committed enough funding to the military. The resignation has triggered recriminations across Whitehall, with Downing Street and the Treasury trading blows with Healey’s allies over the scale of the defence budget shortfall.

No 10 expressed dismay that the Ministry of Defence had requested £18bn to plug funding gaps in major projects, while those close to Healey accused Starmer of failing to acknowledge the deterioration in global security. The prime minister, speaking to the BBC, defended his decision to restrict defence investment, saying any leader would face the same difficult tradeoffs. “Whoever is prime minister is going to face the same prevailing winds as I am facing,” Starmer said.

What’s at stake: UK defence commitments and Nato targets

Healey revealed that Starmer had only offered to increase defence spending to 2.68% of GDP by 2030, about £25bn below the Nato target of 3.5% by 2035, which the prime minister had agreed to a year ago. No 10 and the Treasury offered to plug £13.5bn of the £18bn deficit, but Healey argued that the geopolitical environment had worsened following the US-Israeli attack on Iran, and that Starmer had committed the UK to potential peacekeeping missions in Ukraine and the Strait of Hormuz. “Anyone with a brain can see that the world has changed in the past year,” an ally of Healey said.

The US has also added pressure. Elbridge Colby, the influential US undersecretary of defence, cited Healey’s resignation letter and called for the UK to spend more. “There is again a great need for more British military strength in this critical time,” he said in a social media post. The New York Times reported that the US wants to reduce its military presence in Europe, cutting F-15 and F-16E fighter jets from 150 to 100, expecting the UK and other European Nato members to take the lead on defending the continent from Russian aggression.

Background: How the budget crisis unfolded

Government sources said the MoD had told ministers about a major shortfall in its budgets during an already agreed spending review, and was seeking commitments beyond 2029. The Treasury questioned how the defence review went from being described as fully funded to revealing an £18bn black hole. “We still don’t have the answer to that,” a Treasury source said. The armed forces minister, Al Carns, also resigned late on Thursday, accusing the government of not spending enough on the military and spending on the wrong weapons.

Starmer met Healey’s replacement, Dan Jarvis, on Friday morning along with Richard Knighton, the chief of the defence staff, to discuss the budget crisis. The defence investment plan, originally scheduled for Monday, has been delayed until close to the start of the Nato summit in Ankara, Turkey, at the beginning of July, giving Jarvis limited time for input. Matthew Savill, a defence policy specialist at the Royal United Services Institute, said Jarvis “inherits what the MoD considers an inadequate settlement” and will at best have some influence on programme prioritisation.

Public impact: Who is affected and why it matters

The crisis directly affects UK military readiness and the country’s ability to meet its Nato commitments. With the US signalling a reduced European presence, the UK is expected to take a larger role in deterring Russian aggression. The spending shortfall could delay or cancel major defence projects, impacting jobs and national security. The resignation of two senior defence officials also raises questions about the government’s credibility on defence, at a time when global threats are increasing.

Labour MPs are increasingly expecting a leadership challenge, with Andy Burnham tipped to win next Thursday’s Makerfield byelection and return to Westminster. The former health secretary Wes Streeting, who quit Starmer’s government last month after poor election results, could also be involved. Asked if he would lead Labour into the next general election, Starmer said: “Well, that’s what I want to do. I recognise that I’ve got to turn things around.”

Next steps: What to watch in the coming weeks

Next week, Starmer will face Donald Trump and other G7 leaders at a summit in France, where he will have to deal with the fallout from the crisis. Most G7 countries are partners with the UK on major defence projects, but there was no immediate sign of a turnaround on defence spending. The delayed defence investment plan is expected to be published before the Nato summit in early July, giving Jarvis a limited opportunity to shape it. Jarvis spent his first day in the job visiting a drone testing site in Swindon, where he told employees there were “significant challenges ahead” as well as “great opportunity”. The coming weeks will test whether Starmer can stabilise his government and restore confidence in the UK’s defence commitments.

Source: The Guardian.