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Defence Secretary Wes Streeting on Thursday rejected accusations that his department is “kicking the can down the road” on the UK’s defence‑spending plan, saying the government is already delivering extra money and capabilities. The comment came after the Budget failed to outline a clear route to the target of spending 3 % of GDP on defence by 2030, a shortfall highlighted by the Commons defence committee.

The criticism emerged as Chancellor John Healey and Streeting announced a new “offset” policy for foreign firms that win contracts worth more than £50 million. Under the rules, companies must invest an equal amount in British factories, jobs and training. The Ministry of Defence will apply the measure case‑by‑case from April 2027, and the pair will unveil it on a visit to BAE Systems’ shipyard in Glasgow. Similar requirements already exist in Poland, Norway and the Netherlands, where they are used to boost the economic return from defence procurement.

Labour chair of the cross‑party defence committee, MP Tan Dhesi, said the lack of a detailed pathway in the Budget meant key decisions had been “kicked into the long grass” and pushed to next year’s spending review. He warned that without building capability now, the UK could be “seriously vulnerable” in a major conflict. Streeting called Dhesi’s remarks “unfair” and “unfounded”, insisting the extra funding already announced, including a £4.7 billion plug in the Defence Investment Plan funded by a 1 % cut to capital budgets across departments, shows progress. He told BBC Breakfast the offset rules would deliver “bang for the British buck” and help meet the 3 % target while recognising that higher defence spending competes with other public priorities.

The next step is the upcoming spending review, expected in the second half of 2027, where ministers will assess the full cost of the new investment rules and the broader defence budget. If the offset policy is rolled out as planned, it could reshape how overseas suppliers contribute to the UK’s defence industry, potentially securing jobs and skills while still leaving the 3 % GDP goal dependent on future parliamentary decisions.