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Sunday 14 June 2026 11:14 am  |  Updated:  Sunday 14 June 2026 11:15 am

Government departments will look at cutting budgets to fund defence, minister says

By: Maisie Grice

Investment Reporter

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Nandy said the government was looking to boost defence spending

Government departments are looking at cutting their budgets further in order to help fund defence, a cabinet minister has said.

Culture secretary Lisa Nandy insisted the country’s national security remains minister’s “highest priority” adding departments are looking to shift their budgets to fund defence.

She said to Sky News: “There’s a clear picture emerging from this Government that we have moved resources from other departments in order to fund defence, that includes mine and it includes other departments as well, and we’re continuing to do that.”

However, she dodged questions on whether more money would be offered to new defence secretary Dan Jarvis, who took over from predecessor John Healey earlier this week.

Nandy said she could not pre-empt the still unpublished Defence Investment Plan, but added that she did not believe Jarvis “would have taken the job were he not confident that we could meet the moment”.

She also dismissed claims that defence is not a pressing priority for the government, arguing that the government is committed to ensuring the UK’s safety.

Nandy said: “Defence remains the highest priority, and I don’t agree that we’re not committing the resources that we need. But when the threat level changes, when the global situation changes, we have to change our approach as well.”

Healey steps down

Nandy’s comments follow Healey’s decision to resign on Thursday, after months of tension with Starmer over funding an uplift for the armed forces.

In a letter to the Prime Minister, Healey said the government’s draft for the Defence Investment Plan “falls well short of what is required for defence and the country at this dangerous time”.

Read more

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Andy Burnham, Mayor of Greater Manchester, smiling in glasses, dark jacket, light blue shirt, blurred green background.

“After explaining to you that I would not be able to accept a DIP settlement that does not give our forces the resources they need, I am now left with no other option than to submit my resignation as your defence secretary,” Healey wrote.

He added that the Treasury had also been “unwilling to commit the resources that the nation needs to defend the country at this time of rising threats”.

But Nandy disagreed with Healey’s claims that Starmer had failed to commit the resources the country needs to defend itself at a time where threats are arising across the globe.

She said: “I don’t agree with him on that point, because these are discussions that are currently being had.”

Starmer under pressure

The resignation of Healey has placed Starmer under further pressure, with the MP for Rawmarsh and Conisbrough widely seen as an ally of the prime minister.

The resignation also comes as Starmer he faces a potential leadership race, with Andy Burnham looking to win the Makerfield by-election next week.

Starmer, Healey and Chancellor Rachel Reeves were widely expected to unveil the DIP, the 10-year blueprint that would act on recommendations made in the strategic defence review last year.

The Prime Minister had already committed to increasing defence spending to 2.6 per cent of GDP from next year, while adding further commitments to reach three per cent after 2030 and 3.5 per cent by 2035 under a Nato agreement.

Military chiefs had also warned that there was a £28bn funding shortfall in the next four years due to the rising costs of equipment and other areas of the armed forces.

Armed forces minister, Al Carns also resigned on Thursday, citing “inadequate” funding in his letter to Starmer.







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Healey challenges Cabinet to find cuts 

John Healey, an MP, speaks at a formal business meeting with other politicians and executives around a green table.

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