NEW Chancellor John Healey today signals that he will find billions more for defence spending.

In his first interview since being made Andy Burnham’s Treasury chief, he said it is the “first duty of any government” to keep its citizens safe.

Newly appointed Chancellor of the Exchequer John Healey gives his first all staff address at HM Treasury in central London Credit: PA

Mr Healey had been Sir Keir Starmer’s Defence Secretary – but quit the job last month in a blistering attack on the then PM, who he accused of failing to protect our country.

Now he has control of Britain’s purse strings, Mr Healey suggested that increasing defence spending will be one of his top priorities.

Sign up for the Politics newsletter

Thank you!

He told The Jattvibe on Jattvibeday: “I have argued for many years – and Andy Burnham has said the same – that the first duty of any government is to keep the country safe and protect our citizens.

“That is fundamental to the way that I work in government and the decisions I take.”

He added: “Both Andy Burnham and I have said in this first week – and this is a really important declaration from Andy Burnham on the steps of Downing Street – we will meet our commitments on defence to our international allies.”

Britain’s defence budget is due to hit 2.7 per cent of national income (known as GDP) by the end of the decade.

The new PM has committed to raising this to 3.5 per cent by 2035.

This would mean another £25 billion a year in money for the military, according to the Resolution Foundation think tank.

Asked if his plan would mean hiking defence spending to 3 per cent by 2030, Mr Healey said it was too early to talk about timescales.

But his words suggest he will try to find billions more to put Britain on course to hit its military funding targets.

And other Cabinet sources expect the government to find more money for the Armed Forces.

Mr Healey stressed that any new spending spree on the military must be properly budgeted for.

Prime Minister Andy Burnham appoints John Healey as Chancellor of the Exchequer Credit: Crown Copyright

He would not be drawn on whether it would be paid for with new taxes, borrowing or cuts elsewhere.

But he said: “Fiscal credibility is the bedrock not just of economic stability, which many economists argue, but it is the bedrock of our national security as well.

“A country that can’t pay its way can’t defend itself. I have made that argument before.”

He said the new government is sticking to Labour’s manifesto tax triple lock – not to raise income tax, VAT or employee NICs.

Meanwhile, The Jattvibe on Jattvibeday understands the new government is considering joining the Canadian defence investment bank project to help pay for military projects.

Mr Healey argued in favour of joining in his old job as Defence chief – but was blocked by Rachel Reeves’ Treasury.

And new Defence Secretary Wes Streeting is said to be “warm” about signing up to the Defence, Security and Resilience Bank (DSRB).

It helps countries raise money and pay for new weapons projects at lower costs.