HM Treasury

Stories

UK defence secretary resigns over military funding dispute

Named in resignation letter as unwilling to fund defence fully

Britain's top uniformed officer told the House of Lords on June 16 that the armed forces will have to 'dial back' operations, training, and exercises if funding does not rise. Chief of the Defence Staff Rich Knighton said day-to-day budgets are losing ground to capital spending. The split was 80/20 twenty years ago; on current projections it reaches 50/50 by 2030.

Updated Jun 22

Bank of England cuts to 3.75%—one vote, two stories, and a fight over what “neutral” means

Money Moves

Budget measures are now a visible input into the BoE’s inflation and growth forecasts

This cut had courtroom drama energy. The Bank of England dropped rates to 3.75%—but only because Governor Andrew Bailey switched his vote and made it 5–4. The immediate market read was hawkish-by-UK-standards: sterling rose and gilt yields ticked higher as traders pared back expectations for rapid 2026 easing.

Updated May 15