Slash spending to fund billions of pounds needed for UK’s defence, Healey told – as IMF warns of ‘difficult trade-offs’

4 comments 4 Next JOHN Healey has been given a stark warning to slash spending to fund a military cash boost, the IMF says. The Chancellor must be up front with voters that cuts across government departments must be carried out, the experts say. John Healey Credit: Shutterstock Editorial The organisation admitted that “difficult trade-offs” were on the table as the tax burdens across Europe are already at a peak. Advertisement Mr Healey walked into the on-going row as he arrived at the IMF annual meeting in Bangkok today. Sign up for the Politics newsletter Thank you! Email address Please provide a valid email. Your info will be used in accordance with our Privacy Policy You'll now receive top stories, breaking news, and more, straight to your email. Labour is facing on-going calls to increase defence spending to three per cent of GDP by 2030 but will only set plans out next year. The warning from International Monetary Fund’s Rodrigo Valdes who called for “urgent” spending cuts when pushed on where the money should come from. read more on politics POLITICAL FIX Think again if you expected John Healey's Budget to be dull & uneventful HEALEY OF FORTUNE When the 2026 Budget is: Date and predictions for John Healey's statement He pointed to the tax burden already being high across the continent. He said: “In general, Europe has relatively high revenue ratios. So the space for a lot more revenues is not easy. “It distorts at the end of the day, so the discussion about the social contract behind spending is very, very urgent in the sense that… less spending… part of the new pressures that you will have from different sources.” Labour is facing on-going calls to increase defence spending to three per cent of GDP by 2030 but will only set plans out next year. Most read in Politics DEATH SMASH Wealthy CEO killed mum & left his wife in wheelchair in 76mph Maserati crash CITY PROBE PM told questions over City 'aren't going away' as he denies discussing charges Clocks Blocked Two states don't change the clocks: Why Arizona and Hawaii don't observe DST LOVE BYTES Lonely man spends entire salary to meet 'dream girl' before heartbreaking twist The government is only committed to hitting the NATO target of 3.5 per cent of GDP by 2035. Advertisement Chancellor John Healey resigned from the government as Defence Secretary in a row over defence cash. Era Dabla-Norris, also of the IMF, added: “There are going to be difficult trade-offs. And then countries will have to assess carefully in communication and in dialog, in discussion with the public in terms of what the priorities are. “What needs to come first, and what the governments have to spend on.” Labour attempted to reduce the benefits bill last year by just £5 billion but a backbench rebellion thwarted Sir Keir Starmer ‘s efforts. Tory leader Kemi Badenoch has committed to hitting the 3 per cent by 2030 and has accused Andy Burnham if kicking the matter into the long grass. Advertisement She announced last week a £10 billion “Brittania Shield” which will act like an Iron Dome which will act to protect UK skies. 4 comments 4