Defence secretary John Healey has resigned, accusing Sir Keir Starmer and the Treasury of being “unwilling to commit the resources that the nation needs to defend the country at this time of rising threats”. In a blistering letter of resignation, Healey said the funding proposed for the long‑delayed Defence Investment Plan (DIP) “falls well short of what is required” and left him with no choice but to quit.
Resignation and accusations
Healey’s letter, which he said he “never expected to write”, directly blamed the prime minister and chancellor Rachel Reeves for failing to provide the money needed to keep Britain safe. He argued that the DIP’s spending increases were “backloaded”, with meaningful extra support not arriving until after 2030, even though “the imperative to speed up readiness to fight is in the first two years”. Without a plan that “meets the moment”, Healey wrote, he would have been “forced to make decisions that would reduce the readiness of our forces and increase the risk to personnel on operations, and could make our country less safe”.
Sources said the package offered by the Treasury did not put a date on increasing defence spending to 3 per cent of GDP and had attempted to force the Ministry of Defence to plan for reaching that figure only in 2034/35. Healey explicitly told the prime minister he could not accept such a settlement, and his resignation was submitted shortly afterwards.
Sir Keir responded hours later, saying he was “sorry” to lose his defence secretary but insisting the DIP “does just that, delivering an unprecedented increase in defence spending in a sustainable way”. He added that the plan was backed by “the necessary investment”. No replacement for Healey has yet been announced.
Defence Investment Plan dispute
At the heart of the rupture is a bitter disagreement over the pace and scale of the Defence Investment Plan. The government has committed to spending 3.5 per cent of GDP on defence by 2035, meeting the NATO target agreed by allies, yet the DIP presented to Healey on Monday projected defence spending rising to just 2.68 per cent of GDP by 2030, after reaching 2.6 per cent next year. This timeline, Healey argued, is far too slow given the immediate threats from conflicts in Ukraine and Iran, as well as increased Russian activity toward NATO countries.
Armed forces minister Al Carns described the DIP as “not fit for purpose”, saying Sir Keir “has got to sort this out”. The plan itself has been significantly delayed, with ongoing negotiations between the Cabinet Office, Treasury and Ministry of Defence over its details and funding. It is now expected to be published before the NATO summit in July.
The Treasury’s resistance has been a key stumbling block. Chancellor Rachel Reeves has reportedly been unwilling to break fiscal rules or raise taxes substantially for defence, preferring targeted increases and efficiencies. She has indicated that other budgets, including welfare, may need to be cut to fund the increases, and has ruled out further borrowing for the defence investment plan.
The dispute comes against a backdrop of deep historical cuts. Real‑terms defence spending fell by 22 per cent between 2009/10 and 2016/17, from £59.2bn to £46.2bn in 2024/25 prices. While spending has risen in real terms since 2016/17, that seven‑year dip means armed forces capability has steadily declined. The UK’s defence spending as a share of GDP hit a low of 1.94 per cent in 2018; in 2024 it stood at 2.28 per cent, well below the historical average of around 3.91 per cent.
George Robertson, a former Labour defence secretary who led the 1998 Strategic Defence Review and was appointed by Starmer to write the government’s own Strategic Defence Review, has previously warned of “corrosive complacency”. He accused “non‑military experts” in the Treasury of “vandalism”, arguing that Britain is “underprepared” and “underinsured” in the face of global threats. He also claimed the prime minister was unwilling “to make the necessary investment” in defence. Senior military figures have echoed those concerns, warning that cuts have left the country unable to protect itself.
Wider political implications
Healey is the fourth cabinet minister to leave Sir Keir’s government since Labour came to power and the second to resign over policy differences, after Wes Streeting quit as health secretary last month amid the fallout from Labour’s local election losses. The resignation piles huge pressure on the prime minister as he faces down threats of a Labour leadership contest.
Eyes are already on next week’s Makerfield by‑election, which Greater Manchester mayor Andy Burnham hopes to win in order to launch a challenge. Labour MPs have said that foreign secretary Yvette Cooper is “very, very unhappy” with the direction of the government and is considering her future, having already told Sir Keir he needs to set a timetable for his departure from No 10. One Labour MP told colleagues: “John [Healey] will not be the last to quit.” Another added that Cooper “is definitely on resignation watch”. However, a source close to Cooper denied she is preparing to resign.
Conservative leader Kemi Badenoch said Healey’s resignation showed that Sir Keir’s premiership was “falling apart”. She accused the prime minister of “dithering” and having “no idea” how to pay for defence spending targets, and has called for the largest peacetime rearmament programme in British history. Liberal Democrat leader Sir Ed Davey said the departure should act as “a wake‑up call” for Starmer and any potential leadership challengers, urging them to “get serious about funding our armed forces properly”.
Healey’s letter drew praise from Conservative MPs, including former soldiers Tom Tugendhat and Ben Obese‑Jecty, who described it as “principled”. Tugendhat, a former defence minister, said the letter “states clearly this administration has failed” and added: “The complacent confidence in peace is over. We must rearm.” Labour MP Tan Dhesi, chair of the defence committee, paid tribute to Healey as a “serious, committed and respected defence secretary” and called his resignation “a grave moment” and a warning the government should treat with “utmost seriousness”.
The resignation is also hugely embarrassing on the international stage, coming just days before a crucial G7 summit where Sir Keir and other European leaders are expected to come under pressure over defence spending from Donald Trump. Italy’s defence minister, Guido Crosetto, has expressed understanding for Healey’s decision, noting similar challenges with defence spending cuts in Italy. The war in Ukraine, the conflict in Iran and its economic repercussions, including soaring energy prices, have all limited the government’s fiscal room for manoeuvre as it attempts to balance defence commitments with other spending priorities.
