Home Business NewsHealey quits as ‘Starmer and the Treasury’ will not commit to investing in Defence

Healey quits as ‘Starmer and the Treasury’ will not commit to investing in Defence

11th Jun 26 12:45 pm

Sir Keir Starmer has been thrown into one of the most serious early crises of his premiership after John Healey resigned as Defence Secretary in a blistering attack on Downing Street and the Treasury over what he described as a critical failure to properly fund Britain’s Armed Forces.

In an eviscerating resignation letter, Mr Healey warned that Britain would be left “less safe” as a result of decisions taken at the top of government, accusing ministers of failing to provide the resources required at a time of escalating global instability and growing threats from Russia.

The resignation follows weeks of mounting tensions over the long-delayed Defence Investment Plan, with senior figures in the military reportedly warning that the proposed funding settlement falls well short of what is needed to rebuild Britain’s war-fighting capability.

Mr Healey said he had been presented with a financial package for the plan on Monday which, in his view, failed to meet the scale of the challenge facing the Armed Forces.

“We came into government recognising Britain faced a new era of threat which demanded a new era for defence,” he wrote.

“Since then, you have been unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats.”

He went on to say the settlement “falls well short of what is required”, adding that crucial additional funding would not arrive until after 2030 — too late, he implied, to address urgent readiness gaps.

After informing the Prime Minister that he could not accept the package, Mr Healey said he had been left with “no other option” but to resign.

The shock departure will intensify pressure on Sir Keir Starmer as he attempts to finalise the Government’s Defence Investment Plan, already delayed repeatedly and now expected to be published ahead of the NATO summit in Turkey on July 7.

It also deepens the sense of turmoil surrounding defence policy, with senior figures privately warning of a widening gap between Britain’s military ambitions and the funding available to deliver them.

At Prime Minister’s Questions, Conservative leader Kemi Badenoch accused the Government of “dithering” over defence funding and warned that national security was being weakened by indecision.

“There is still no Defence Investment Plan,” she told MPs. “He is the Prime Minister now, at least I think he is — should I be calling Andy Burnham instead?”

She argued the Government faced only three choices: higher taxes, higher borrowing, or spending cuts, accusing ministers of refusing to confront the fiscal consequences of their commitments.

Sir Keir Starmer declined to rule out tax rises, instead attacking the Conservatives’ record on defence procurement and claiming the previous government had left major contracts delayed or over budget.

“When they left office, 47 out of 49 major defence contracts were delayed or over budget,” he said. “That is what we are fixing.”

He added: “You can’t just scrub away and forget.”

Mr Healey’s resignation letter directly challenged that narrative, suggesting the issue was not inherited failure but present-day underinvestment at a moment of acute strategic risk.

His departure is likely to trigger renewed scrutiny of Treasury decision-making and deepen unease within government about the affordability of Britain’s defence ambitions.

Opposition figures seized on the resignation as evidence of a government in disarray, while defence sources warned the crisis would raise urgent questions about readiness, procurement and long-term capability planning.

For Downing Street, the loss of a Defence Secretary in open revolt marks a significant blow to authority at a time of heightened international tension, exposing fractures at the heart of government just as Britain prepares to set out its long-term military strategy.

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