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ABC News
6 days ago
- Business
- ABC News
Albanese under pressure to increase defence spending as US visit looms
It's hardly surprising Australia's defence chief would want more money spent on defence. Any self-respecting member of the top brass would champion an increase in military funding. But Admiral David Johnston's willingness to make his case so publicly yesterday has piled more pressure on the Albanese government at a critical moment. In less than two weeks, the prime minister is due to hold his first face-to-face meeting with the US President, whose administration is now openly calling on its ally and AUKUS partner to lift its game on defence spending. The UK (the third AUKUS partner) is already doing just that, with British Prime Minister Sir Keir Starmer this week spelling out a new "war fighting readiness" for his country. Now Australia's defence chief has issued a very deliberate warning about the dangerous outlook facing Australia. He's explained where he fears Australia is falling short. And he's made it clear his budget is under pressure. The defence chief may not have openly called for a spending increase, but it didn't take a code breaker to decipher this message. First, there was the choice of venue. Admiral Johnston spoke at a conference hosted by the Australian Strategic Policy Institute (ASPI), a think tank that's accused the government of leaving Australians "less secure" through its "failure" to boost defence spending. Just last week the prime minister shot back at ASPI, arguing its views had become utterly predictable and accusing the institute of having partisan links (it's currently run by Justin Bassi, a former national security advisor to then prime minister Malcolm Turnbull and chief of staff to then foreign minister Marise Payne). The chief of defence, however, had no qualms speaking at the ASPI event. Nor did he have any problem sharing his views on the spending constraints he's facing. "Defence is fully expending its budget at the moment," Admiral Johnston said, suggesting there was not a dollar to spare. This was an important point, according to former Defence Secretary Dennis Richardson. "Very often in the past the defence budget has been under-expended, under-utilised and that's been used as an argument against increasing the defence budget," Richardson told the ABC. "We're now in a position where defence is spending every dollar allocated to it." Indeed, the defence budget was under "pressure", Admiral Johnston argued, requiring "choices" to be made. The defence chief said he would always give the government "frank" advice on the spending required. And he was certainly frank in describing the strategic outlook from his perspective. For the first time since World War II, he said, "we're having to reconsider Australia as a homeland from which we will conduct combat operations." In case anyone missed the point, the defence chief said it again. "We may need to operate and conduct combat operations from this country." This goes beyond the warnings delivered in last year's National Defence Strategy about Australia facing the "most challenging strategic environment" since WWII and the end of a 10-year strategic warning time for conflict. This was the head of Australia's defence force publicly warning of the potential for war fighting on or from Australian soil. And just in case anyone was under the impression Australia is well equipped to fight from and defend its northern bases, Admiral Johnston listed the many challenges currently facing our "northern infrastructure". These included limited fuel storage, long supply chains, a lack of adequate medical facilities to "deal with trauma" for personnel involved in combat, and an absence of industry capable of rapidly repairing equipment damaged in battle. His point was to highlight the need for broad investment beyond just the defence portfolio to better prepare Australia for what could be in store. Spending by federal and state governments on health, infrastructure, and industry all needs to be focused on this new strategic reality. It all sounded rather similar to the "war fighting readiness" Sir Keir Starmer spoke of in the UK. The British Labour prime minister is lifting defence spending to 2.5 per cent of GDP by 2027-28, with an aim for 3 per cent in the next parliament. It's a direct response to the Russian aggression facing Europe and the equivocation of the Trump administration. "The UK is in a different place from Australia," was Albanese's response this week when asked if Australia should follow suit. The prime minister is not a fan of setting arbitrary spending targets for defence or any other portfolio. When asked this week about US Defence Secretary Pete Hegseth requesting Australia lift its spending to 3.5 per cent of GDP, Albanese says his preferred approach is to identify what's needed and then "provide that investment". Treasurer Jim Chalmers, who's facing spending pressures across the board and a structural budget deficit, sounds even less interested in pouring more into defence. He points to the extra spending already allocated under the AUKUS plan as responsible and substantial. "There are always people who say we should spend more on defence, there'll be a lot of people who say we should spend less on defence," Chalmers said yesterday. That's no doubt true, but the chorus of those saying more should be spent is growing louder. The chief of defence certainly wasn't calming that chorus down. He's not weighing into the argument about precise GDP spending levels, but he has now pointed out the defence budget is stretched, and warned Australia needs to think about combat readiness much closer to home. David Speers is national political lead and host of Insiders, which airs on ABC TV at 9am on Sunday or on iview.
The Independent
03-06-2025
- Business
- The Independent
Healey insists defence funding will rise to 3% target to meet review aims
Defence Secretary John Healey insisted he was '100% confident' that military funding would increase as promised to prepare the armed forces for the future. 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. 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.
The Independent
03-06-2025
- Business
- The Independent
Defence secretary fails to rule out tax rises to fund defence spending uplift
The defence secretary has failed to rule out tax rises to pay for Britain's 'war readiness' amid concerns that the government does not have enough money to fund the plans outlined in a major defence review. John Healey said the government would 'set out how we'll pay for future increases in the future' when quizzed over how Britain can afford to boost its military funding to 3 per cent of the country's gross domestic product. Speaking a day after Sir Keir Starmer unveiled the long-awaited defence strategic defence review, Mr Healey said he is '100 per cent confident' the target would be met — but he struggled to say how it would be paid for after economists warned that significant tax rises would be needed. Questions have been raised over the government's big ambitions to make Britain 'safer and stronger' after Sir Keir refused to commit to hitting the 3 per cent target by 2034 — which the review warned was essential to ensure the plans were affordable. Asked how the government would pay for the uplift, Mr Healey failed to rule out tax rises. He told Times Radio: "We'll set out how, just as we've done with our 2.5 per cent commitment where we have made that tough decision to switch money out of overseas development aid into defence - because that's the priority to meet the threats that we face as a country, that's the priority for building up our armed forces.' 'We'll set out how we'll pay for future increases in the future', he added. On Monday, Sir Keir declined to rule out another raid on the aid budget to fund increased defence spending, and signalled he was hopeful that the extra investment could be supported by a growing national economy. Mr Healey also indicated the government is gambling on economic growth to pay for the plans, telling BBC Breakfast that growth is 'the way that we are able to pay for the things that we need to do and we want to do as a country'. 'For 14 years under the Tories, we've had a failure on economic growth', he said. 'We've got a chance during the government now starting to fix the foundations of that economic growth. We've had four interest rate cuts since the last election. 'We've got the fastest growing economy in the G7 now, and we've had the Office of Budget Responsibility revising up their growth forecasts because of the actions that this government is taking. 'So I'm confident that's going to give us the basis hit our 3 per cent in the next parliament.' It comes after Paul Johnson, of the Institute for Fiscal Studies (IFS), warned that the prime minister will need to make 'really quite chunky tax increases' to pay for the plans. He told Times Radio: 'It looks like the government wants to reinstate the winter fuel payment. It's thinking about the two-child limit for benefits. We've got a spending review next week. 'And if we are really going to spend another £10-£15bn a year on defence, whilst inevitably we're going to spend more and more on health and pensions and so on, you really do have to ask that question, what are the choices that you're going to make?' Mr Johnson added: 'I mean, bluntly, it really does seem to me that the only choice that is available, if we're going to go through all of those things, is some really quite chunky tax increases to pay for it. 'But of course, that's not something the prime minister or the Chancellor is willing actually to say.' Unveiling the long-awaited SDR on Monday, Mr Healey said Britain's army needed to become '10 times more lethal' in the face of the 'immediate and pressing threat" from Russia and the rise of China. 'We are in a new era of threat, which demands a new era for UK defence,' he told MPs. The government has promised to increase defence spending to 2.5 per cent of gross domestic product (GDP) by 2027, and has an ambition – but no firm commitment – to hike it to 3 per cent in the next parliament. With a backdrop of 'turbulent times' and a promise to learn lessons from the Ukraine conflict, the report even warned 'it may be necessary to go faster' on increasing the UK's defence capabilities. The review found that the armed forces are not ready to fight opponents like Russia or China, with inadequate stockpiles of weapons, medical services that cannot cope with a mass-casualty conflict and a personnel 'crisis' that means only a small number of troops are ready to be deployed. One of its authors, General Sir Richard Barrons, warned that a cruise missile was 'only 90 minutes away from the UK'. Sir Keir said: 'Russia is already menacing our skies and our waters, and threatening cyber-attacks, so this is a real threat we're dealing with.' Unveiling the details of the review, the prime minister said he was "100 per cent confident" the plans to make Britain 'ready for war' could be delivered on current funding plans.
Yahoo
03-06-2025
- Business
- Yahoo
Healey insists defence funding will rise to 3% target to meet review aims
Defence Secretary John Healey insisted he was '100% confident' that military funding would increase as promised to prepare the armed forces for the future. 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 ⬇️ — 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.
