Donald Trump’s administration has renewed pressure on Britain over defence spending with a pointed warning that U.S. Backing for UK sovereignty of the Falkland Islands could be on the table.
A senior U.S. Official said that Prime Minister Andy Burnham, 55, has been issued what amounts to an ultimatum after Chancellor John Healey signalled he will shelve the target of reaching 3% of GDP on defence by 2030. The Financial Times reported on August 28 that Healey, 66, intends to delay larger decisions on increasing defence spending until a Treasury spending review next year.
The official made clear that Britain will receive “special attention” when the White House reviews whether NATO allies are meeting their commitments. “I would expect the UK to receive special attention because it has so much potential,” the source said. “We will therefore continue efforts to incentivise and enable the UK to step up in a major way.”
When directly asked whether the U.S. Would withdraw its support for Britain’s claim to the Falklands, the official offered a stark response. “I can say that they [conversations] are candid and nothing is being ruled out as far as options for encouraging the sort of burden-sharing that we seek,” the source said.
Healey, who quit as Defence Secretary in June, had previously warned about funding shortfalls in a resignation letter to then-Prime Minister Keir Starmer. “This new era for defence required further investment through the Defence Investment Plan (DIP),” he wrote. “The excellent and extensive cross-government work that completed in January—overseen by you, me and the Chancellor—confirmed the scale of the challenge and the rising demands on defence.”
He continued: “Since then, you have been unable, and the Treasury has been unwilling, to commit the resources that the nation needs to defend the country at this time of rising threats.”
Healey said that “fiscal discipline” was the first priority for any chancellor, while acknowledging the financial pressures created by global conflicts and rising security threats.
The renewed pressure follows a leaked Pentagon email from April, which surfaced before Argentina’s antics at the 2026 World Cup brought the Falklands back into public debate. That email warned that Trump might reassess diplomatic support for European “imperial possessions,” including the Falklands, due to Starmer’s reluctance to get involved in the Iran war.
At last year’s NATO Summit, allies committed to investing 5% of GDP annually on defence by 2035. “Our investments will ensure we have the forces, capabilities, resources, infrastructure, warfighting readiness, and resilience needed to deter and defend in line with our three core tasks of deterrence and defence, crisis prevention and management, and cooperative security,” the pledge stated.
The U.S. Has reportedly deemed Starmer’s defence investment plan insufficient as a “step in the right direction,” even as it wants Britain to become a leading partner in defence. The White House is now planning to put pressure on NATO members that fail to fulfil the alliance’s five percent spending pledge.
The Falklands, a British Overseas Territory whose population overwhelmingly wishes to remain under UK rule, was invaded and occupied by Argentina in 1982, triggering a two-month war that ended with British victory. The prospect of America withdrawing its diplomatic backing for British sovereignty there would mark a dramatic rupture in the transatlantic alliance that both countries have maintained for decades.
Healey is scheduled to deliver his first budget in October.