UK Treasury admits no analysis on funding 3.5% NATO pledge

The UK Treasury has not conducted any analysis of the trade-offs needed to meet the government's commitment to spend 3.5% of GDP on defence by 2035, Chief Secretary Lucy Rigby admitted in a parliamentary hearing. The admission came amid growing tensions between the Treasury and Ministry of Defence, which led to the resignation of Defence Secretary John Healey.

Key revelations

• Rigby stated the Treasury had done no number-crunching on how to fund the extra £30-40bn required, saying decisions are for the next prime minister Source: The Guardian.
• Healey blamed the Treasury for blocking higher spending, calling its orthodoxy a "dead hand on dynamic government" and accusing it of seeing defence as a drain rather than a growth driver Source: BBC.
• The government has an interim target of 3% of GDP in the next parliament, but the path remains unclear. Rigby stressed that "money is finite" and a debate on public consent is needed Source: The Guardian.

Disagreements and context

While the Treasury claims the relationship with the MoD is improving, Healey's resignation tells a different story. The Defence Investment Plan added £15bn but still only reaches 2.7% of GDP by 2030, short of the 3% Healey sought. Healey argued the Treasury was "in denial" about NATO commitments, contrasting with Rigby's emphasis on future decisions Source: BBC; The Guardian.