Donald Trump has said the US no longer sees the defence of Europe as its primary concern - a major policy change after 80 years - and called for Europe to spend more on helping Ukraine in the war with Russia, while the US should spend less.
The defence secretary was speaking the morning after Sir Keir Starmer met European leaders for an emergency meeting over what to do about defence spending following a dramatic change in US policy.
Mr Healey said the reforms will include four new leaders in the Ministry of Defence whose jobs will involve trimming down costs, planning for war, driving growth and delivering the UK's nuclear programme.
John Healey said the UK is in a "new era of threat and that demands a new era for defence" in a speech at the Institute for Government on Tuesday.
He revealed new reforms for defence spending to reduce duplication, which he said would mean "better value for taxpayers and better outcomes for the armed forces".