UK Budget: Healey announces £10 billion package for Ukraine and sets 2030 target for 3% of GDP on defence; NATO's Rutte welcomes 'credible path'

UK Chancellor John Healey announced £10 billion of additional economic and military support for Ukraine in his Budget on Wednesday 28 October and committed to spending 3% of GDP on defence by 2030, his first Budget since Andy Burnham became Prime Minister.

The Treasury called the Ukraine package the UK’s largest ever for the country. It includes £500 million of extra military support for Ukraine’s air defences this winter, £7 billion of economic support over three years, including up to £5.5 billion of World Bank guarantees, and a £3 billion increase in UK Export Finance capacity for Ukraine, prioritised for military support. The Treasury said the UK’s total commitment to Ukraine now stands at £35 billion.

Healey told MPs that Burnham and he had called President Volodymyr Zelensky that morning and that Zelensky told them: “You’ve made my day.” On social media, Zelensky said: “Every step to strengthen Ukraine brings Russia closer to realising that it must end this war of its own making,” BBC News reported. “Today we send a clear message to Moscow,” Healey said.

Defence spending

Healey said he would set out at next year’s Spending Review how the UK would meet its NATO commitment to spend 3.5% of GDP on defence by 2035, “with a target date for 3% in 2030”. He said the Budget fully funds the Defence Investment Plan; BBC News reported that departments must find 1% cuts in their capital budgets to fill a £4.7 billion gap. He also announced treaty negotiations with Finland, Poland and the Netherlands on a “Multilateral Defence Mechanism” and up to £5 billion of defence investment through the National Wealth Fund and British Business Bank.

NATO Secretary General Mark Rutte wrote on X that he welcomed “this move to put [the UK] on a credible path towards meeting the commitment made by all NATO Allies in The Hague”, Politico reported.

Conservative leader Kemi Badenoch said Healey had offered “a plan to have a plan”, adding: “I bet Putin’s really scared now,” BBC News reported. Labour MP Tan Dhesi, who chairs the Commons defence committee, said “some of the key decisions on defence spending have lamentably been delayed until next year’s spending review”.

See also: Burnham and Badenoch clash over Jackdaw gas field and borrowing at PMQs.