Prime Minister Sir Keir Starmer faced a grilling at Prime Minister's Questions on Wednesday, July 1, over the government's newly announced defence spending plans. The defence investment plan (Dip), unveiled on Tuesday, June 30, pledges billions to prepare Britain for war by 2030, including a £15 billion increase in defence spending.
Funding the £15bn Uplift
The £15 billion increase is to be funded by scrapping investments elsewhere. Some £3.4 billion of that was taken on by the Treasury, which is paying for it by reprioritising and making reductions to other departments’ budgets. Conservative leader Kemi Badenoch described the Dip as a “total dereliction of duty” and claimed it “does not add up”.
PMQs Exchange
At PMQs, Sir Keir dismissed the criticism as “faux outrage”, arguing that “any Labour prime minister would stand behind” the plan. When pressed on whether his likely successor Andy Burnham knew about the shortfall, Sir Keir said: “All people who know what is in the plan, and welcome it.”
Mrs Badenoch suggested the current Prime Minister is leaving it to Mr Burnham to find the money. In his response, Sir Keir said: “Because of the decisions at the last budget, we’ve got headroom of £22 billion. That is precisely so we can take decisions like this. We delivered it outside a budget, outside a spending review, just like we did with the special educational needs – outside a budget, outside a spending review – just like the previous government did when they announced their five-year NHS plan in 2018 outside a budget, outside a spending review.”
He added: “Let’s drop the faux outrage, focus on what matters – the biggest sustained increase for 45 years, providing what is needed to keep the country safe.”
Conservative Criticism
Mrs Badenoch went on to claim the “plan has unravelled”, before asking: “Did the member for Makerfield (Mr Burnham) know that he was going to have to find £5 billion for the Prime Minister’s plan?” Sir Keir said: “We are in power with record investment in defence and security. I am proud of this Labour Government and any Labour prime minister would stand behind this plan.”
Mrs Badenoch then said: “It does not sound like he has told the member for Makerfield to find £5 billion.” She added: “The reason that he is in this mess is because he was too weak to cut welfare when he had the chance. There are only three ways to find the missing £5 billion: increase borrowing, increase taxes, or cut welfare. Which one will he recommend to the member for Makerfield?” Sir Keir replied: “We built a headroom of £22 billion. The very reason for the headroom is to have the credibility to take decisions outside the budget and outside the spending review. They don’t understand it because they lost control of the public finances.”
