Chancellor Healey will be under pressure to deliver for armed forces

Key developments are emerging from the global stage. Chancellor Healey will be under pressure to deliver for armed forcesImage source, PA MediaImage caption, In his previous role as defence secretary, Healey was vocal in his support of increased military spendingByJonathan Beale Defence correspondentPublished23 minutes agoJohn Healey as chancellor will now have to deliver on what John Healey as the former defence secretary said the Treasury failed to do - properly fund Britian's armed forces. When he resigned from Sir Keir Starmer's government last month he accused the Treasury of being "unwilling" to properly fund the Defence Investment Plan (DIP). This was supposed to set out details of defence spending to modernise the military and reverse what he had called "the hollowing out" of the armed forces.

The DIP's publication had been delayed by nearly a year as Healey wrestled with the Treasury and No 10 to fund the plans. He didn't get anywhere near what he said was needed. Who's in Andy Burnham's cabinet?

The Details

Published15 minutes agoHealey seen as 'safe pair of hands' as he is appointed chancellor Published1 hour agoKey takeaways as Andy Burnham becomes PM Published16 minutes agoWhen Healey resigned last month, he had been offered only an extra £13. 5bn - what amounted to a 0. 08% increase in the defence budget.

At the time he made clear that was not enough to keep the country safe and to meet rising threats. Those close to him said in reality the offer amounted only to an extra £10bn, with the rest what they called "Treasury Trickery". Healey's resignation letter also expressed his frustration that the government had no clear timetable to meet its promise of increasing the UK's defence spending to 3% of GDP.

He wanted to reach that target by 2030, the year when many in Nato have said the alliance must be ready for conflict. But under Sir Keir, the 3% pledge remained vague - some time in the next parliament. A further Nato pledge to increase defence spending to 3.

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5% of GDP by 2035 appeared to be even more remote. Now as Andy Burnham's chancellor, Healey will be under pressure to put his money where his mouth is. But as chancellor he can't just focus on defence.

There will be many competing demands. And the extra spending he argued for as defence secretary is significant. According to calculations by the Office for Budget Responsibility (OBR), reaching this 3% threshold will demand an additional £17.

3bn per year by 2029–30. The overall defence budget would have to rise from more than £63bn a year to closer to £90bn by 2030. Any increase in defence spending will increase the pressure for tax rises, though Healey has argued in the past for "creative funding options".

The development has drawn wide international attention, with diplomatic circles watching closely.