UK Defence Secretary John Healey quits over military spending dispute
UK Defence Secretary John Healey has resigned, saying Chancellor Rachel Reeves's decision to cap 2027 defence spending at 2.8% of GDP breaks the 3.5% commitment he pledged to the Trump administration.
In his resignation letter handed to Prime Minister Keir Starmer on Tuesday evening, Healey wrote: "The current cabinet decision removes my capacity to deliver the commitment I gave to NATO allies." Downing Street published the letter overnight. Healey was due to host AUKUS partner Australian Defence Minister Richard Marles in London; the visit has been cancelled.
Chancellor Reeves told Westminster: "We have to balance priorities between roads, the NHS and energy investment." Trump administration spokesperson Karoline Leavitt said at a White House briefing: "The United Kingdom backing away from its commitment reopens the question of alliance burden-sharing." The Pentagon confirmed to Reuters that AUKUS submarine cooperation will be reviewed.
Starmer has given the interim portfolio to Minister of State Pat McFadden; a permanent appointment is expected within a week. UK gilt yields fell 7 basis points and sterling weakened to $1.2680. Opposition leader Kemi Badenoch tabled an urgent question to the Prime Minister in the Commons. This is not investment advice.
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