Wales' First Minister has condemned the UK Government's new defence investment plan, warning it could divert up to £30m from Welsh schools, hospitals, and transport infrastructure. In a letter to Prime Minister Sir Keir Starmer, the First Minister described the unilateral cuts as 'absolutely unacceptable' and a breach of the respect agenda.
Defence Spending Boost Details
On Tuesday, Prime Minister Sir Keir Starmer announced a £15bn increase in military spending as part of a long-awaited defence investment plan. The plan aims to raise defence funding to £80bn annually by 2029. Starmer stated that some UK road and energy projects would not proceed as planned to fund the increase, and that borrowing would not be used. Instead, long-term investment budgets of other government departments would be cut by 1%.
However, only £10.3bn in savings have been identified so far, leaving the next leader—likely Andy Burnham—to find the remaining £4.7bn in his first autumn Budget.
Impact on Wales
The Welsh Government's budget is largely derived from UK Government spending in England. The cuts could reduce Welsh capital budgets by £25m to £30m in the coming year, with further reductions in subsequent years. The First Minister stated it was 'deeply concerning' that schools, hospitals, and infrastructure projects in Wales could miss out on vital funding.
In his letter to Starmer, the First Minister wrote: 'I know that we share a commitment to the safety and security of our citizens in Wales and the wider UK, and it is important that defence forces are adequately equipped to face modern-day threats.' He added: 'It is absolutely unacceptable that agreed Welsh budgets are being cut unilaterally with no prior discussion at Ministerial or official level.'
The First Minister also noted that the Welsh Government received no advanced warning of the precise scale of these cuts, first learning about them in the media. He called this 'deeply disappointing' and contrary to the respect agenda he aims to establish with the UK Government.
UK Government Response
A UK Government spokesperson argued that people in Wales would benefit from higher defence spending through strengthened national security and thousands of skilled, well-paid jobs in the defence industry. They stated that protocols were followed, including a confidential briefing with the new Plaid Cymru-minority government.
'Any changes to the Welsh Government's budget to contribute to our shared objective of keeping Wales safe would be minor compared to the largest settlement in devolution history secured for this spending review, including nearly £6.5bn in additional spending power for the Welsh Government,' the spokesperson said.
A Labour source, however, described the First Minister's criticism as 'unserious politics,' stating: 'Being in power means being the grown-ups in the room, and playing your part.'
