Former Defence Secretary John Healey has accused the Treasury of failing to recognise defence spending as an engine for economic growth, despite his resignation over a controversial military funding plan.The Defence Investment Plan (DIP) unveiled last week commits to £15bn in defence spending, with an additional £4.7bn required in the next budget.

Healey argued that the Treasury's refusal to increase funding contradicts the UK's NATO commitments to spend 5% of GDP on defence by 2035, with 3.5% allocated to core defence.The original DIP aimed for 2.68% by 2030, which Healey deemed insufficient, as he advocated for a 3% target.While the revised DIP includes a marginal increase to 2.7% by 2030, Healey criticised the Treasury's 'orthodoxy' that frames defence as a drain on public resources rather than a growth driver.

He also highlighted the importance of maintaining UK leadership within NATO as the US reduces its contributions, warning that failing to meet defence targets could undermine the country's strategic position.

The controversy has sparked debates about the government's fiscal priorities and the role of defence in reindustrialisation, with potential implications for the next prime minister, Andy Burnham.