Healey tells departments to make 1% cuts to fund defence
The reduction in public spending will go towards paying for the Defence Investment Plan.
Chancellor John Healey has told every government department to find 1% cuts in their capital budgets to fill a £4.7bn hole in the funding of the Defence Investment Plan.
The reductions come on top of the 1% cuts departments were asked to make earlier this year in order to pay for the initial £10.3bn of the plan's overall £15bn price tag.
The plan boosted defence spending; however the chancellor continues to come under pressure to explain how he will meet a further target of spending 3% of national income on defence by 2030.
Now chancellor, Healey told the House of Commons on Wednesday: "At the spending review next year, I confirm that I will set out the details of how we will meet our NATO commitment to spend 3.5% of GDP on defence by 2035, with a target date for 3% in 2030.