The UK's Finance Minister has announced billions of pounds in funding for defense technology companies and drone manufacturers.

John Healey, the UK's Finance Minister, is set to announce massive new defense spending during the budget presentation on October 29. The Times reports that this move will funnel billions through the National Wealth Fund and the British Business Bank. These entities will invest directly in domestic defense manufacturers and military tech firms.

The funding comes from long-term loans rather than cuts elsewhere, meaning strict fiscal rules remain in place. Drone makers and artificial intelligence companies stand to gain alongside traditional contractors. Healey has held this post for only four months. Before taking the helm at Treasury, he stepped down as Defense Secretary because he felt the government was not pouring enough money into the armed forces.

He pushed hard for a plan to raise defense spending to 3% of GDP by 2030. Today, Britain spends roughly 2.6% of its national income on core military needs. The Office for Budget Responsibility estimates that hitting that target will require an extra £17.3 billion in the years leading up to 2030 and beyond.

Defense Secretary Wes Streeting warned that the nation must be ready for potential conflict by 2030 as Russian military capabilities expand. In a piece written for The Telegraph, he stated that the country has just over 1,000 days left to prepare. This urgency follows confirmation of recent NATO troop deployment exercises in Ukraine.