Rachel Reeves has boasted she will make Britain 'the most attractive place in Europe to invest in defence' – as it emerges the Treasury is watering down spending. The one-year overdue Defence Investment Plan will finally be published next week after furious rows inside Labour.
Internal Labour Disputes Over Defence Blueprint
Ministers have fallen out over the plan with Armed Forces Minister Al Carns barred from reading drafts of the spending blueprint. The blueprint is expected to be accompanied by a Government announcement on defence spending, with £15 billion or more being set aside for extra equipment purchases in the years ahead. Yet even that amount fails to cover a shortfall between what was recommended and what is currently available. That figure is understood to be £28 billion between now and 2030. The Chancellor is said to want a shallower increase in defence spending of about £10 billion to £15 billion.
Chancellor's Vision for Defence Investment
Speaking at a JP Morgan event, she said: 'This government is investing in the capabilities that our armed forces need – but we also need an industrial base that drives innovation and growth, with the right procurement rules and access to finance to make the UK the most attractive place in Europe to invest in defence and dual-use technologies.' Rachel Reeves has boasted she will make Britain 'the most attractive place in Europe to invest in defence'.
Delays and Concerns
The plan was supposed to be published in June last year, about the time of its partner document the Strategic Defence Review. But repeated delays have worried defence manufacturers left in the dark about what equipment the MoD wants and at what scale. Co-author of the review, General Sir Richard Barrons, warned that, if the plan is watered down, 'you've got to think through what is the impact of this on the minds of the enemy? The principal adversary, Russia. Because they will be thinking the UK is a soft touch.'
Political Reactions
Ben Wallace, the former Tory defence secretary, said: 'Intelligence chief after military chief has warned of the threat against the UK, yet Rachel Reeves and No 10 fail to fund what is necessary.' Launched over two years ago, the Daily Mail's Don't Leave Britain Defenceless campaign demanded much greater defence spending. Britain spends 2.6 per cent on defence – a figure Labour has pledged to increase to 2.7 per cent next year.
