Andy Burnham's Government ‘will meet international defence commitments’, chancellor John Healey insists

Andy Burnham’s Government “will meet our commitments on defence to our international allies”, new chancellor John Healey has insisted.

Healey unexpectedly emerged as the holder of the Government’s purse strings on Monday, just over a month after he quit as defence secretary following a spending row with the Treasury, the department he now runs.

When he quit as defence secretary, Healey hit out at the Treasury for not stumping up the £28bn military chiefs believed were needed for the defence investment plan (Dip).

At the time, he said he was “certain” that Britain should be spending 3% of gross domestic product – a measure of the economy – by the year 2030, and warned the actual commitment fell far short of this.

Healey wrote in his resignation letter that extra funding in the Dip would only see defence spending rise to 2.68% by the end of the decade, and expressed frustration with Sir Keir Starmer for not setting a clear timetable to reach 3%.

The Nato military alliance has meanwhile tasked all member states with spending 3.5% of GDP on their core defence spending by 2035, in preparation for the growing threat from Russia.

The new chancellor was asked by broadcasters on Monday night if welfare cuts or new taxes could be introduced to meet the 3% of GDP goal by 2030.

He replied: “Fiscal control is the first duty of any chancellor. It is mine. And fiscal credibility is the bedrock for economic stability and for national security.

“You heard the Prime Minister this afternoon say, in this more dangerous world, we will meet our commitments on defence to our international allies.”

Conservative leader Kemi Badenoch was among the first high-profile political figures to have called on Healey to “ensure the defence investment plan is properly funded”.

On social media, she also said: “Conservatives will work with him to cut benefits so we can fund defence.

“Because we can’t have higher taxes or even more borrowing.”

The Liberal Democrats have called on Healey to introduce war bonds as a means of raising extra cash for defence.

Lib Dem leader Sir Ed Davey said: “John Healey has seen up close the need to rebuild our armed forces after years of Conservative cuts and Starmer dithering.

“Now as chancellor, he should take up Liberal Democrat plans for Defence Bonds to invest £20bn in our sovereign capability.”