Healey orders 1% capital cuts across departments to fund defence

The short version

• Chancellor John Healey has ordered every government department to find 1% cuts in capital budgets.[BBC News]
• The cuts are intended to fill a £4.7bn gap in funding for the Defence Investment Plan.[BBC News]
• Departments have not yet decided which capital items will be cut, and Conservative leader Kemi Badenoch accuses Healey of offering more planning instead of action.[BBC News]
• NATO chief Mark Rutte says the UK is on a credible path to its alliance spending commitment, while the Office for Budget Responsibility estimates the 3.5% of GDP target by 2035 will cost £35bn.[BBC News]

Key facts

• Chancellor John Healey told every government department to find 1% cuts in capital budgets to fill a £4.7bn gap in Defence Investment Plan funding.[BBC News]
• Government departments have not yet decided which capital budget items will be cut.[BBC News]
• Conservative leader Kemi Badenoch accused the chancellor of offering more planning rather than concrete action.[BBC News]
• NATO Secretary General Mark Rutte said the UK is on a credible path towards meeting the alliance spending commitment agreed at The Hague.[BBC News]
• The Office for Budget Responsibility estimates the 3.5% of GDP defence spending target for 2035 will cost £35bn.[BBC News]

Sources

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.

• Healey tells departments to make 1% cuts to fund defenceBBC News - Business