Net-zero and transport spending to be cut to fund Defence Investment Plan
The UK has committed to reach a defence spending target of three per cent of gross domestic product when economic conditions allow
The Prime Minister is considering cutting spending on net-zero and transport to fund the long awaited Defence Investment Plan.
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The Defence Investment Plan (DIP) was expected last year but may not be published until July amid reported wrangling within Government over how to pay for the plans.
The UK has committed to reach a defence spending target of three per cent of gross domestic product when economic conditions allow, and 2.6 per cent – which includes spending on the military as well as on security and intelligence – by 2027.
The Sunday Times reported that Sir Keir Starmer would target net zero and transport as he looks for cuts to fund the DIP.
Capital spending, which is used for long-term investment on infrastructure, will also be reduced by one per cent across all departments to raise around £6 billion by the end of the Parliament, according to the paper.
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The Government is expected to be prepared to pay an extra £15billion to fund the Defence Investment Plan - between the £12billion the Treasury were prepared to fund, and the £18billion the Ministry of Defence were looking at.
Sir Keir told LBC: "I've always said we're going to have to spend more on defence and so we will set out the funding in relation to the Defence Investment Plan.
"It is about a question of priorities and this is the top priority.
"I think everybody watching or listening to this will know in their heart of hearts that that has to be the top priority, defending our country, particularly at the moment.”
But he insisted that it would come with “huge opportunities” too - with more for jobs and opportunities right across the country.
When grilled about the potential for the UK to be involved in a conflict, the PM added: “we do have to be ready”.
He noted NATO estimates that we could be drawn into a conflict before 2030, adding: “We don’t want war, but the way to avoid war is to be ready. And to be ready, we’ve got to step up and that’s what this is all about."
He insisted of the upcoming plan: "Yes, it'll be fully funded. We'll settle that out. And this will give us the capability that we need going forward from here. It's vital that we do that.”
David Lammy has said that Sir Keir’s pledge for defence spending to reach 3 per cent of national income is “absolutely sacrosanct under this Government”.
The Deputy Prime Minister said “the money will be found” to set out how new equipment and infrastructure will be procured, as he faced questions about which departments may face cuts to fund the armed forces.
Asked whether he would be happy to give up some of the justice budget to shore up cash for defence, Mr Lammy, who is also Lord Chancellor, said he would not comment on discussions with the Treasury but that defence of the nation is “the first purpose of any Government”.
He said: “The money will be found, our commitment to 2.6 per cent and then to three (is) absolutely sacrosanct under this Government.”
It comes after MPs on the Commons spending watchdog criticised the delays in publishing the Dip, which ministers have said will be released before the Nato summit in Turkey begins on July 7.
Chairman of the Public Accounts Committee Sir Geoffrey Clifton-Brown said: “Excuses to the effect of ‘taking the time to get the details right’ simply do not cut it.”
Tory leader Kemi Badenoch said the delays to the DIP were a “mark of shame” for the Labour Government and “our national security is being undermined”.
“The military is tearing its hair out waiting for Keir Starmer to make a decision. British jobs are on the line,” she said.
An MoD spokesman said the Government is providing a “generational increase” in defence spending, with an extra £270 billion across this Parliament.
The spokesman said: “The Defence Investment Plan will fix the outdated, overcommitted and underfunded programme we inherited.
“We are working hard to finalise it. As the Defence Secretary told Parliament this week, the Prime Minister is determined to publish it before the Nato summit.”