UK defence funding gap persists as former minister snubs post

Former UK defence minister Al Carns has declined an offer to return to Prime Minister Andy Burnham’s government, keeping the spotlight on a £4.7bn shortfall in military spending. Chief whip Anneliese Midgely offered Carns a ministerial post, but he rejected it because the dispute over defence funding remains unresolved.

"I resigned in June because I did not believe the defence funding on the table was adequate for the threats this country faces," Carns wrote on social media. "The argument I resigned over has not yet been settled."

His refusal to rejoin the front benches underscores the ongoing fiscal tension at the heart of Britain's defence strategy. The previous administration under former prime minister Sir Keir Starmer left a £4.7bn gap in the long-delayed defence investment plan. For European allies and defence contractors, this persistent gap raises questions about the UK's readiness to fund the hardware and troop deployments expected of a major NATO member.

Burnham has pledged to meet NATO’s core defence spending target of 3.5% of gross domestic product by 2035. However, Conservative shadow defence secretary James Cartlidge has challenged the prime minister to commit to reaching 3% before the current parliament ends in 2029. The new Defence Secretary, Wes Streeting, has indicated that any additional capital must come with strict conditions. Streeting said he wants to ensure "every penny is spent wisely" and that investment is tied to "modernisation".

The fiscal pressure now falls largely on the Treasury. John Healey, who resigned as defence secretary alongside Carns in June over the same funding issues, has been appointed chancellor. Carns expressed confidence that his former boss would find the necessary money. "He is a man of his word and he has made it clear that he will deliver on the commitments that led him to leave government in the first place," Carns said.

The defence portfolio is just one element of a wider cabinet reshuffle. Streeting replaced Dan Jarvis, who returned to his previous role as security minister. In other changes relevant to the business community, Scottish Labour leader Anas Sarwar was granted a peerage to serve as business minister. Several other ministers, including Mike Tapp, Natalie Fleet, and Mary Creagh, also stepped down from their posts on Wednesday.