Healey Calls for Britain to Re-arm as Government Moves to Boost Defence Spending

Defence Secretary John Healey delivers a speech at the Institute for Government in London on Feb. 18, 2025. Leon Neal/Getty Images

Defence Secretary John Healey has called for Britain to re-arm in response to a new era of global threats, as the government advances plans to increase defence spending to 2.5 percent of GDP.

Speaking at the Institute for Government (IfG) on Tuesday, Healey said that the government’s £3 billion boost to defence spending this year will be matched by major structural reforms aimed at strengthening the UK’s military readiness.

He also reaffirmed the government’s commitment to increasing defence spending from the current 2.3 percent to 2.5 percent of GDP.

Since taking office, Labour has pledged to conduct a defence review, set to be published this spring. The review will provide a clear roadmap outlining concrete spending increases and the timeline for implementation.

It is also expected to address concerns raised by Conservative Party critics, who have challenged Labour over delays in clarifying spending commitments.

The government’s upcoming defence review is being led by Lord Robertson, a former Labour defence secretary and NATO secretary general. The outcome of this review, Healey suggested, will not only shape Britain’s military capabilities but will also have long-term implications for global security.

Healey’s speech comes after a series of meetings with U.S. officials in recent days, amid ongoing peace negotiations over the Ukraine conflict.

NATO has urged European allies to increase defence spending beyond 3 percent of GDP, while the United States has called for increases of up to 5 percent.

“We are in a new era of threat, and that demands a new era for defence,” Healey said.

He acknowledged that the strategic landscape is evolving rapidly, revealing that his recent discussions with U.S. Defence Secretary Pete Hegseth in Brussels and at the Munich Security Conference reinforced the urgency for European nations to step up their defence commitments.

“What Pete Hegseth accelerated was that recognition that we’re stepping up, but we must go further and what was so strong in the middle of the reaction to the strength of his messages—the content of his messages was not new,” he told the IfG audience.

Meanwhile, Prime Minister Sir Keir Starmer has committed to providing UK troops on the ground in Ukraine if required for a future peace deal.

However, he has not yet provided concrete numbers and stressed that European nations must collectively back any deployment, requiring a security guarantee from the United States.

Starmer is set to discuss these plans with President Donald Trump during his visit to the United States next week.

Defence Reforms

The government’s defence reforms aim to improve efficiency, accountability, and military readiness, rather than being bogged down by excessive bureaucracy.

“We have 11 separate finance functions, with 2,500 people performing the same activity in different places and in different ways. Defence is mired in process and procedure. We’ve added complexity where simplicity is needed.

“In procurement, we employ 11 checkers for every one decision-maker. No wonder it takes, on average, six years for a large programme just to reach contract,” Healey said.

To tackle these inefficiencies, the government is introducing a new “quad” leadership team, comprising the chief of the defence staff, the permanent secretary, the national armaments director (NAD), and the chief of defence nuclear.

Secretary of Defense Pete Hegseth speaks at the defense ministers' meetings at NATO headquarters in Brussels, Belgium, on Feb. 13, 2025. Omar Havana/Getty Images

Set to take office from March 31, these senior officials will focus on warfighting, operational readiness, and deterrence. Healey highlighted the NAD as a pivotal role in fixing procurement, ensuring that defence becomes an engine for economic growth.

Together, the leadership team is expected to execute a £20 billion-plus budget to build and sustain the UK’s national arsenal, with projected savings of at least £10 billion over the next decade, funds that Healey confirmed would be reinvested directly into Britain’s defence.

“I see this as a new FTSE 100 company within the Ministry of Defence (MoD), tasked with getting the very best capabilities into the hands of our frontline forces,” he said.

Pressed on the urgency of the NAD recruitment and the timing of the job advert, Healey said that an independent recruitment process was already underway. However, he did not confirm any cuts to defence programmes despite a £7 billion shortfall in procurement spending.

Instead, he reassured the audience that the £10 billion in savings over the next decade is just one of several planned sources of new defence investment.

‘Difficult Decisions’

The overhaul of the defence sector includes a series of cost-saving measures, such as the decommissioning of key naval and aerial assets.

Among them are the assault ships HMS Albion and HMS Bulwark, as well as the Type 23 frigate HMS Northumberland, which Healey has previously described as beyond economic repair.

Also set for retirement are the British Army’s Watchkeeper drones, two Wave-class tankers, and 14 of the oldest Chinook transport helicopters. Healey further confirmed that the Royal Air Force’s Puma helicopters will be withdrawn from service after March 2025.

Despite these reductions, the government plans to redeploy or retain all personnel currently servicing these projects.

Healey has defended the “difficult decommissioning decisions,” arguing that they will “secure better value for money for taxpayers and better outcomes for the military.”

Under the Defence Industrial Strategy, launched by the government in December 2024, the UK will increase investment in domestic defence firms and introduce new war game exercises to test supply chain resilience.

The initiative is also focused on improving domestic supply chains in critical sectors, such as semiconductors and steel, reinforcing the UK’s ability to sustain military operations independently in times of crisis.