With John Healey as new Chancellor, will Forces get more funding?

Published: 22:59, 20 July 2026 | Updated: 23:00, 20 July 2026 Hopes were raised on Monday night that new Chancellor John Healey will push Britain towards a higher defence spend. He was the surprise pick to lead Andy Burnham's Treasury, little more than a month after quitting as defence secretary over a lack of money for the Armed Forces. In his first phone call with Donald Trump, Mr Burnham told the US President that defence and security were 'at the top of his agenda'. Yet despite a multi-billion pound financial black hole at the Ministry of Defence – and service chiefs warning vital operations could be cancelled due to the crisis – the new Prime Minister offered nothing new in his first speech. But Mr Healey's appointment has fostered optimism that the country will finally set out a timetable towards reaching the Nato spending target of 3.5 per cent of GDP. Asked if welfare cuts or new taxes were on the cards to meet the defence goal, last night Mr Healey said: '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... We will meet our commitments on defence to our international allies.' To the chagrin of defence chiefs, Sir Keir refused to set out a timetable for when defence spending would rise. Under the current plan, put together by Sir Keir and outgoing chancellor Rachel Reeves, Britain is spending 2.6 per cent of GDP while no significant increases are expected before 2030. Plans to delay or 'backload' a rise were widely criticised due to the acceleration of Russia's operational tempo against Nato in the last year – and factors such as a near 90 per cent increase in the cost of aviation fuel in that period, which has affected the Royal Air Force. John Healey meets British soldiers at Salisbury Plain in Wiltshire where he saw Ukrainian soldiers being trained by the Army as part of Operation Interflux Healey, who resigned as Defence Secretary, was appointed as Chancellor by Prime Minister Andy Burnham on Monday  Tory leader Kemi Badenoch tweeted yesterday: 'Congratulations to John Healey on his appointment. He can now ensure the Defence Investment Plan is properly funded. Conservatives will work with him to cut benefits so we can fund defence. Because we can't have higher taxes or even more borrowing.' A defence industry source described Mr Healey's appointment as 'very, very, very good news', with the expectation he will lend a much more sympathetic ear to calls for military spending now that he holds the purse strings. On Monday night, the former head of the Royal Navy, Lord West, said: 'Resolving the issue of defence spending is urgent and has to be addressed as the first priority of Burnham's Government.' Former Army commander Hamish de Bretton-Gordon added: 'Unlike his predecessor, the Prime Minister needs to remember that defence is his number one priority. The danger with backloading [defence spending] is the level of threat Russia poses today. We cannot afford to wait until the 2030s before we recognise that. Our allies, the US particularly, simply won't forgive us. 'Andy Burnham should also remember there is a £13billion black hole in the defence budget which must be filled in order for Britain to meet those same international commitments.' It came as US ambassador Warren Stephens told Mr Burnham to 'move beyond the rhetoric' of his predecessor and put some cash on the table. 'The United States is proud to stand alongside Britain, but we must not allow our efforts to be held up by backloaded investments or other spending priorities,' he told The Times. 'We must move beyond the rhetoric of partnership and make the sustained investments that transform alliances from agreements on paper into the living architecture of a free and secure world.' Mr Burnham was congratulated by Ukraine's president Volodymyr Zelensky, who said: 'Britain has always been one of the global leaders. We are ready to work together in all possible formats. We highly appreciate the UK's political, defence and values-based support.' The PM said that he will 'be there for' Mr Zelensky and support will remain 'resolute' under his premiership. On Monday, the defence think-tank Rusi said Mr Burnham faces 'a challenging international context with intractable problems.' Research director Rosalind Roberts said: 'The signs are Putin is doubling down and could seek escalation. A UK prime minister would have a central role to play in bringing UK, European and US support to bear for Ukraine.'