logo
Healey insists defence funding will rise to 3% target to meet review aims

Healey insists defence funding will rise to 3% target to meet review aims

The Strategic Defence Review recommended sweeping changes, including a greater focus on new technology including drones and artificial intelligence based on rising budgets.
The Government has committed to increase spending to 2.5% of gross domestic product from April 2027 but only has an 'ambition' to reach 3% during the next parliament, which is due to end by around 2034.
The authors of the review have suggested reaching that 3% target is vital to delivering their recommendations while US President Donald Trump has pushed for Nato allies to spend 5%.
Mr Healey denied he was gambling on economic growth to meet his target, telling BBC Breakfast: 'I'm 100% confident that we'll hit that 3%.
'The important thing for now is what we can do, and we can do now more than we've been able to do before, because of an extra £5 billion the Chancellor has put in to the defence budget this year and the 2.5% that we will deliver three years earlier than anyone expected.
'It means that a £60 billion budget this year will rise throughout this parliament and beyond.'
The Ministry of Defence announced a £5 billion investment in the 'kit of the future' following the publication of the review on Monday.
The funding includes £4 billion for drones and autonomous systems, and an extra £1 billion for lasers to protect British ships and soldiers.
A new era of threat requires a new era for defence.
The Strategic Defence Review marks a landmark shift in our deterrence and defence ⬇️ pic.twitter.com/EZtoHx6PGR
— Ministry of Defence 🇬🇧 (@DefenceHQ) June 2, 2025
Mr Healey said the investment would provide 'the most significant advance in UK defence technology in decades' and 'ensure our armed forces have the cutting-edge capabilities they need to meet the challenges of a rapidly changing world'.
Part of the investment will see the establishment of a new 'drone centre' to accelerate the deployment of the technology by all three branches of the armed forces.
The focus on drones comes as the technology has proved increasingly lethal on the battlefield in Ukraine, where it now kills more people than traditional artillery.
At a meeting of allied defence ministers in April, Mr Healey said the UK estimated drones were inflicting 70-80% of battlefield casualties, while on Sunday Ukraine launched a major attack on Russian airfields deep behind the front line using a fleet of small drones.
In addition to investment in drones and AI, the Government has announced an additional £1 billion for the development of 'directed energy weapons' (DEWs) during the current parliament.
This includes the DragonFire laser scheduled to be fitted to the Royal Navy's Type 45 destroyers from 2027, with a similar system provided for the Army by the end of the decade.
DragonFire and other DEWs are intended to provide a lower-cost form of air defence against targets including drones, costing just £10 per shot compared with the thousands of pounds it costs to fire existing weapons.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Hedge fund orders London-based analysts back to office five days a week
Hedge fund orders London-based analysts back to office five days a week

The Guardian

time34 minutes ago

  • The Guardian

Hedge fund orders London-based analysts back to office five days a week

Man Group has ordered its London-based analysts to return temporarily to the office five days a week, as the world's biggest listed hedge fund seeks to recover from a period of poor performance sparked by Donald Trump's tariff war. Quantitative analysts working at Man AHL, the company's computer-run fund that aims to identify and follow momentum in markets, have been told they are expected to be in its offices daily until the end of July as part of an 'all hands on deck' project. The edict applies to about 150 staff in London, just under 10% of the overall group's 1,700 global employees, the Financial Times reported. 'Man AHL has asked its staff in London to work in the office five days a week for a three-month period to support an 'all hands on deck' cross-team research project,' the company said. 'While these cross-team initiatives are infrequent, experience has shown that a period of highly focused, in-person collaboration allows significant research progress to be made in a relatively short amount of time.' The company, which has been a champion of flexible working arrangements including working from home, said that its 'broader agile working policy remains unchanged'. Employees tend to be in the office three days a week, on average. However, this varies by role. Trump's destabilising tariff war has resulted in significant volatility in global markets, which has made it difficult for computer-based funds such as AHL to predict market trends. The company's most recent financial statement showed that the start of Trump's trade war in April wiped out all of the assets under management gains made by Man Group in the first quarter. Its holdings were up $4bn in the first three months of the year but plummeted by $5.6bn in the first two weeks of April. The AHL Alpha programme, Man's institutional trend-following strategy, has lost 10% so far this year. Man Group's share price is down more than 30% over the past year. Man Group is the latest major financial services company to revisit its flexible working policies. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Last month, BlackRock, the world's biggest asset management company, told its approximately 1,000 managing directors globally that they were expected to work from the office full time. The New York-based company last told staff in 2023 that they had to go into the office at least four days a week. Earlier this year, JP Morgan Chase summoned all its workers back into the office. Jamie Dimon, the head of the bank, has long been a proponent of restoring pre-pandemic working patterns. Barclays also hardened its stance on remote working earlier this year, saying that all staff should work from the office at least three days a week, up from a previous requirement of two days.

Elon Musk signals he may back down in public row with Donald Trump
Elon Musk signals he may back down in public row with Donald Trump

The Guardian

time40 minutes ago

  • The Guardian

Elon Musk signals he may back down in public row with Donald Trump

Elon Musk has suggested he may de-escalate his public row with Donald Trump after their spectacular falling out. The Tesla chief executive signalled he might back down on a pledge to decommission the Dragon spacecraft – made by his SpaceX business – in an exchange on his X social media platform. He also responded positively to a call from fellow multibillionaire Bill Ackman to 'make peace' with the US president. Politico also reported overnight that the White House has scheduled a call with Musk on Friday to broker a peace deal after both men traded verbal blows on Thursday. The rolling spat – which played out over social media and in a Trump White House appearance – included the president saying he was 'very disappointed in Elon' over Musk's criticism of his tax and spending bill. Musk also said the president's trade policies would cause a recession and raised Trump's connections to the convicted child sex offender Jeffrey Epstein. Musk had responded to a Trump threat to cancel his US government contracts on Thursday with a post on X stating he would retire his Dragon spacecraft, which is used by Nasa. However, responding to an X user's post urging both sides to 'cool off', Musk wrote: 'Good advice. Ok, we won't decommission Dragon.' Musk also appeared to proffer an olive branch in a reply to a post from the hedge fund owner Ackman, who called on Trump and Musk to 'make peace for the benefit of our great country'. Musk replied: 'You're not wrong.' Politico also reported a potential peace call between Musk and the White House, claiming Trump's aides had worked to persuade the president to tone down his public criticism of the Tesla owner before arranging the phone conversation for Friday. After a brief interview with Trump about Thursday's Musk implosion, Politico reported that the president displayed 'an air of nonchalance' about the spat. 'Oh it's OK' Trump said, when asked about the dispute. 'It's going very well, never done better.' Referring to his favourability ratings, Trump added: 'The numbers are through the roof, the highest polls I've ever had and I have to go.' Politico reported that Trump's aides had urged the president to focus on getting his tax and spending bill through the Senate instead of clashing with Musk, with one of his Truth Social posts reflecting a less confrontational tone. 'I don't mind Elon turning against me, but he should have done so months ago,' he wrote on his Truth Social platform, before adding that the tax cut legislation was one of the 'Greatest Bills ever presented to Congress'.

How much money Elon Musk lost because of feud with Donald Trump
How much money Elon Musk lost because of feud with Donald Trump

Daily Mail​

time42 minutes ago

  • Daily Mail​

How much money Elon Musk lost because of feud with Donald Trump

The controversial former-head of DOGE Elon Musk has reportedly lost more than $34billion from his personal net worth after his fall from grace at the White House and very online break up with the US President. Shares in Musk's Tesla also dropped more than 14 per cent at the end of yesterday, losing about $150billion in market value - the largest single-day decline in the company's history. It is the second largest loss of personal net worth, beaten only by Musk's own wipe out again in November 2021, according to the Bloomberg Billionaires Index of the 500 wealthiest people on the planet. He remains the richest man in the world, with a huge $334.5 billion fortune. Musk, who officially left the White House last week, reached a peak of nearly $500 billion in the months after Trump's election success. The valuation of his companies had surged thanks to the belief they would profit from his close relationship with Trump and his role as head of the Department of Government Efficiency, it was reported. But his government contracts with the US were on the line last night as he continued to take part in a savage war with words against Donald Trump, with their partnership breaking down over a tax-cut and spending bill. 'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's Governmental Subsidies and Contracts," Trump posted on Truth Social. The withdrawal would have potentially huge consequences for his Tesla and SpaceX revenue. SpaceX has been awarded over $17 billion in government contracts since 2015, according to ABC news. Much of that money comes from NASA and the Department of Defence. One of Trump's oldest advisors, Steve Bannon, went further and suggested the government seize SpaceX under the Defense Production Act - a move that would undoubtedly trigger challenges. Musk, who had threatened to decommission the SpaceX Dragon capsule - a critical lifeline for transporting American astronauts and supplies to the International Space Station - ultimately retreated. After a user on X suggested he 'cool off and take a step back for a couple of days', Musk abruptly posted: 'Good advice. Ok, we won't decommission Dragon.' It was not before he claimed that Trump is 'in the Epstein files', suggested that he should be impeached and replaced with 40-year-old Vice President J.D. Vance. Moments before the Epstein charge, Trump had taken to Truth Social and said he had asked Musk to leave his administration and said the billionaire went 'CRAZY!' With that, Musk announced that it was 'time to drop a really big bomb.' This 2014 image shows Elon Musk (right) alongside Ghislaine Maxwell (left) who facilitated Jeffrey Epstein's sex trafficking ring. She's currently serving time in federal prison '@RealDonaldTrump is in the Epstein files. That is the real reason they have not been made public,' Musk wrote. 'Have a nice day, DJT!' Jeffrey Epstein is a serial child sex offender who died in prison in 2019. Trump pledged to release the files related to Epstein, with Attorney General Pam Bondi releasing some pages in February, but most of that information was already in the public domain. 'Mark this post for the future. The truth will come out,' Musk added. Asked for comment, White House press secretary Karoline Leavitt told the Daily Mail in a statement: 'This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted.' The brawl started when the X-owner had originally campaigned to stop the 'disgusting abomination' of the x bill which he believed would contribute too much to the country's $36.2 trillion debt. Trump's big, beautiful bill' called for getting rid off electric vehicle tax credits - the cause of Musk's frustration, according to Trump. Analysts at JPMorgan Chase & Co. estimated that the bill would cut about $1.2 billion from Tesla's full-year profit. Despite staying quiet at first, Trump then told reporters he was 'very disappointed' in Musk and they 'had a great relationship. I don't know if we will anymore'. Musk immediately responded via tweet, saying: 'Without me, Trump would have lost the election'. He had spent nearly $300 million backing Trump's campaign among other other Republicans in last year's election. However, the drastic drop in net worth might not reveal the true impact on Musk who increasingly relies on his private enterprises as a source, it was reported in Bloomberg.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store