Sir Keir Starmer's decision to cut infrastructure spending to fund a £15bn defence boost could result in a net loss of 10,000 jobs, according to an analysis of government figures. The research, by the Transition Security Project, suggests that while defence investment will create around 10,000 roles by 2029-30, cuts to other sectors will cost nearly double that number.
The prime minister announced the defence investment plan (Dip) this week, aiming to modernise the armed forces and support British manufacturing. However, £6.8bn of the funding comes from unidentified departmental cuts, with a further £4.7bn unaccounted for. The analysis casts doubt on claims by Starmer and Chancellor Rachel Reeves that the reallocation will boost UK jobs.
Khem Rogaly, co-author of the report, said: 'The idea that military spending can provide a defence dividend is misleading. Far more jobs are created when investing in public needs like health, education and addressing the climate crisis.' Unison general secretary Andrea Egan added that the plan means 'extra cash for war and overseas interventions, but less for schools and hospitals.'
A government spokesperson defended the plan, stating: 'Defence is an engine for growth – supporting 272,000 jobs and over 25,000 MoD apprenticeships. The plan will back British workers, businesses and innovation, generate economic growth, create nearly 60,000 new jobs and increase defence exports.'
The funding gap will need to be resolved by Starmer's successor, likely Andy Burnham, who confirmed he was unaware of the shortfall before the announcement. The biggest cuts are expected from energy and transport departments, with two road projects already halted and home insulation schemes under review.
