UK Defence budget : Defence Secretary resignation bad omen for UK defence budget

Research evidence excerpt

UK Defence budget : Defence Secretary resignation bad omen for UK defence budget

Deutsche Bank Group

Deutsche Numis Research

Europe Industry Date

United Kingdom 12 June 2026

UK Defence budget

Aerospace & Defence Industry Update

Aerospace & Defence

Defence Secretary resignation bad

omen for UK defence budget

Christophe Menard

Defence Secretary John Healey's resignation reignites concerns over the much-

Research Analyst

expected Defence Industrial Plan (DIP), with levels of spending now expected +33-1-4495-9315

below recent expectations. It is too early to identify winners and losers, but

sentiment on UK defense could be subdued.

Lackluster DIP likely drove Healy's resignation

Defence Secretary John Healey has resigned from Keir Starmer's government,

arguing in a letter to the Prime minister that the defence investment plan (DIP) "falls

well short of what is required for defence and the country at this dangerous time",

adding that the prime minister has been "unable", and the Treasury has been

"unwilling" to commit the resources. This controversy comes after the government

had committed to reach 2.5% of GDP by 2027, with an ambition to reach 3% in the

next Parliament if fiscal and economic conditions allowed. However, Healey

declared that the presented DIP plan progressed too slowly, with defense spending

increasing to only 2.6% in 2027, then 2.68% in 2030, with the 3% figure not being

specified until 2034/35. He had previously expressed no doubt that the 3% target

would be met, advocating for a "rapid and credible" trajectory towards 3% .

DIP announcement now expected imminent and disappointing

The DIP publication is expected to take place before the NATO summit in Ankara

(July 7-8) . Press reports pointed to a consensus solution, with the UK Prime