UK weighs delaying defence spending decision until autumn

The Times reported that Prime Minister Andy Burnham is weighing a delay of the UK spending review until autumn or next October. The review would set budgets through 2030 and a timetable for defence spending of 3% of GDP, about £10 billion a year, against NATO aims of 3% by 2030 and 3.5% by 2035. A Whitehall source put the working assumption at next October, linked to holding it with the Budget under Rachel Reeves's one fiscal event a year. UK defence spending is due to reach 2.7% next year, up from 2.3% when Labour took office. A Treasury spokesperson said the date has not been set and called delay talk pure rumour and speculation. Defence Secretary Wes Streeting said the review would set out the path to 3% and 3.5%. Helen Miller of the IFS warned a rise to 3% would take up all planned spending growth and force cuts elsewhere. At the Tory conference, Mark Francois called Burnham an extremely inexperienced prime minister with no track record of interest in defence. John Healey resigned as defence secretary earlier this year over funding delays. BAE Systems, QinetiQ and Babcock shares fell on the report. When the review appears, and how 3% will be funded, remains open.