Badenoch urges Healey to fund defence and cut welfare ahead of budget

Badenoch says delaying defence funding is "unconscionable" and calls for welfare cuts to meet NATO targets.

By Felo News Desk · Published Tue, 20 Oct 2026 14:42:08 GMT

Conservative business secretary Kemi Badenoch warned that the delay in outlining increased defence spending is “unconscionable”, and urged Chancellor John Healey to cut welfare and reduce borrowing in the upcoming Autumn Budget, according to both the Independent and the Evening Standard.

What happened

During a speech in Westminster, Badenoch said the extra money needed to reach a 3% share of GDP on defence is “less than a third of the increase in welfare since Labour came to office”. She added that if the budget does not find the funds, Healey will have “an awful lot of explaining to do”. The speech was delivered ahead of the budget scheduled for 28 October 2026.

What the reports add

Both outlets note that John Healey resigned as Sir Keir Starmer’s defence secretary after a row over funding, and is now serving as Chancellor under Prime Minister Andy Burnham.
The Independent and the Standard report speculation that Healey may raise taxes on banks, which Badenoch said could push up mortgage costs and business‑loan rates.
Badenoch mocked Burnham’s crackdown on music on public transport, saying: “It’s very easy to announce that you don’t like people making noise on trains. That is a job for ticket inspectors, not the Prime Minister.”
She warned that Britain’s 30‑year gilt yields had risen above 6%, the highest level since 1998, and that the UK was now paying more to borrow than any other advanced economy.
The Tories claim they would deliver more than £70 billion in savings, including major cuts to welfare spending.
Labour Party chair Bridget Phillipson called Badenoch “totally tone‑deaf on the economy”, accusing the Tories of “reverse Robin Hood politics”.

What was said

“If, at this Budget, he does not find the money to get to 3%, John Healey has an awful lot of explaining to do,” Badenoch told the Independent.

“But we are hearing that the decision has been kicked into the spending review, and the spending review itself has been kicked into next autumn. If this is true, it is unconscionable. Britain is at risk,” she added, as reported by the Standard.

How it came about

Healey’s fiscal position follows weeks of pressure highlighted in Felo’s coverage:

The Institute for Fiscal Studies warned on 12 October that Healey must raise taxes or cut about £35 billion in benefits to close a fiscal gap.
On 15 October Healey told the BBC from an IMF meeting in Bangkok that the upcoming budget would be “tough”.
The Autumn Budget on 28 October will be Healey’s first as Chancellor under Burnham, with debates expected over defence spending, welfare reforms and possible tax measures such as inheritance‑tax and land‑value‑tax proposals.

Key facts

Kemi Badenoch called the delay in defence funding plans "unconscionable". (independent.co.uk)
Badenoch urged John Healey to cut welfare spending to meet a 3% GDP defence target. (standard.co.uk)
The extra money needed for 3% GDP defence spending is less than a third of welfare increases since Labour took office. (independent.co.uk)