They said: “The chancellor will always do what is right and needed to keep this country safe, you can see that from her actions — a record uplift in defense spending at the spending review, and then working alongside the PM deliver billions more to fund the Defence Investment Plan in full. And let’s be clear on what John is asking for: cuts to schools and hospitals.”
The departure of Healey raises fresh questions about when the DIP will see the light of day. It had been promised before a NATO summit in July, and headline figures had been expected as soon as this Friday. “This indicates that the news on the DIP is not looking good,” said a British government official.
A second defense industry figure said: “Industry have been waiting for white smoke to signal cash is coming for over a year and it now looks like we’ll be waiting a little longer.
“However, if a further wait is what’s required to see a DIP that actually funds anything more than job sustainment schemes in Yeovil and Warton, giving our service personnel the kit they need to keep us safe then it will be worth it. Sadly my hopes aren’t high.”
A third industry figure warned that taking up the DIP was now fraught with political risk for whoever succeeds Healey. “At a time when the defence industry is crying out for the publication of the DIP to unlock contracts and spending, it’s a bit of an odd look to make the DIP a poisoned chalice for whoever becomes defence secretary next and has to either sell spending cuts or defence tax rises for everyone else,” they said.
Labour’s political opponents were swift to leap on Healey’s exit, pointing the finger at the PM and top finance minister Reeves. “Good on Healey,” said Reform UK’s economy spokesperson Robert Jenrick. “Shame on them. Reeves and Starmer should go too. And with them this wretched Labour Government.” Liberal Democrat Leader Ed Davey said Labour needs to “get serious about funding our armed forces properly.”
This is a developing story.
