Starmer battles to retain grip on power as defence secretary quits over £18bn funding gap, Burnham eyes challenge

Healey resigns over 'well short' defence funding

The UK government was thrown into crisis when John Healey quit as defence secretary on Wednesday, warning that the planned Defence Investment Plan falls "well short of what is required" and leaves Britain less safe. Armed forces minister Al Carns and a parliamentary private secretary also resigned within hours, marking the most severe cabinet rupture since Labour took office.

The funding falls well short of what is required, with extra support not coming until after 2030 even though the imperative to speed up readiness to fight is in the first two years.

Healey had privately pushed for Britain to join a new Defence, Security and Resilience Bank (DSRB), an idea championed by Canadian prime minister Mark Carney, but the Treasury blocked negotiations, allies told the BBC. The DSRB would require a one-off contribution of around £870m and is expected to launch at a Nato summit next month. Treasury sources indicated the chancellor was exploring alternative multilateral funding with Poland and other partners.

Starmer defends his record and names Jarvis

Sir Keir Starmer appointed former soldier Dan Jarvis as the new defence secretary and gave a series of interviews to insist his choices were "hard-edged" and that every government department had surrendered part of its long-term capital budget to bolster defence. Jarvis acknowledged the "challenge" of constrained fiscal resources but said he was "absolutely determined" to give the Armed Forces what they need.

Those amazing people who serve in our Armed Forces look to us to provide that leadership and to work across government to make sure that they've got the resources in place that they need.

Number 10 is racing to change the narrative. On Sunday Starmer hosts Japanese prime minister Sanae Takaichi to sign more than 10 commercial and government agreements worth £18bn, including a £9bn offshore wind deal and a Rolls-Royce tie-up on next-generation nuclear technology. The timing is intended to project economic momentum, though the domestic row over defence has eclipsed the diplomatic choreography.

Burnham sharpens his pitch as by-election nears

Greater Manchester mayor Andy Burnham, who is contesting the Makerfield by-election on Thursday 18 June, has moved aggressively to capitalise on the disarray. In a campaign speech he warned that Britain is drifting toward the "poisonous, polarised" politics of the United States and argued that the world has changed so profoundly that the government's defence assumptions are already obsolete.

Does anyone here feel that we can just stay on the path that we're on as a country? It doesn't feel doable, does it? Things are getting harder, and politics is getting more polarised.

Burnham said he would not be "squeamish" about cutting the welfare bill to fund rearmament, a line that echoes Conservative leader Kemi Badenoch, who has written to several senior Labour figures offering to cooperate on benefit reductions. Two polls released on Friday showed Burnham five points ahead of Reform UK candidate Robert Kenyon in Makerfield.

We cannot have our military inadequately funded at a time of growing threats. The funding must also not be backloaded when the pressures are urgent.

Internal manoeuvres and the DSRB proposal

Healey's allies believe joining the Canadian-led DSRB could have bridged the funding gap and supported British defence firms. Gordon Brown, who advises the prime minister on global finance, held direct talks with Mark Carney on the proposal. Treasury resistance, however, hardened after Chancellor Rachel Reeves indicated she opposed extra borrowing for defence. The cabinet now faces a dual pressure: from military chiefs who wanted roughly £28bn in fresh investment and from MPs who see a spending review as an opportunity to redirect welfare money.

The Makerfield result on Thursday is widely seen as the trigger for the next phase. If Burnham wins, aides have signalled that further ministerial resignations could follow on Friday, aiming to force Starmer to stand down voluntarily. Burnham would simultaneously offer cabinet roles to Wes Streeting and Angela Rayner to clear the field, though Streeting has insisted he will stand regardless. The prime minister remains defiant, but one cabinet minister told the BBC everyone was "shaken" by Healey's exit.