Streeting suggests welfare budget cuts may have to pay for extra defence spending

The Health Secretary told LBC's Nick Ferrari that the money "has to come from somewhere" when repeatedly pressed on if he would like to see the money spent on welfare reduced.

He told LBC's Lewis Goodall on Sunday he would not want to see the Health service budget trimmed to pay for extra defence.

But speaking to us this morning, he indicated there may be other parts of government budgets that could fund that instead.

The Government is under pressure to say how it will hike spending to three per cent of GDP by the next parliament, as we face a dangerous world.

Defence chiefs are concerned about a potential £28billion pound shortfall in the current plans, and have called on the PM to set out the defence investment plans for the next few years, as soon as possible.

Some reports have suggested defence leaders may even have to look to cut some programmes by as much as £3billion this year alone - despite increasing threats from Russia, Iran, and elsewhere.

Mr Streeting said in an exclusive Call the Cabinet session with Nick Ferrari: "Yes, we do need to put more money into defence, we will need more, that's the reality of the challenge we face.

Nick pressed the Cabinet minister on whether "spending on welfare [should] move towards defence, as Lord Robertson seemed to suggest?"

Mr Streeting replied: "We definitely want to reduce the welfare budget.

"It's for the Chancellor to set out her budgets, I want to make sure I stay in my lane.

"When the Chancellor is making decisions, I have no doubt, both from the judgements she's made, and the evidence that we are confronted with, that defence will be much higher on her list of priorities than many of her predecessors. She has shown that already."

When pressed again on whether extra funds should come from "the burgeoning welfare budget," he added: "It's got to come from somewhere."

"Yeah, we want to reduce the welfare budget."

He went on to insist that he did not think there should be a choice between one or the other.

Mr Streeting recalled: "I don't see a conflict between the defence of our country and lifting kids out of poverty. I say that as one of those kids who grew up in poverty on a council estate, your wise investment meant I ended up getting a good education, living in a council house, the benefits system put food in the fridge and money in the electric meter.

"I am not just paying back my debt to the taxpayer but my debt to the next generation.

"The cost of not doing that would be much higher."

Insiders insisted that he was just reiterating the government's position - that defence spending would increase, and they want to bring down the welfare bill.

A source told LBC: “The government’s position is to increase defence spending and reform welfare.

"Wes didn’t link those two positions, and he robustly defended the abolition of the two child limit, for which he was a strong advocate.

"Wes is a product of the welfare system, so knows the value of it, and the need to reform it, better than most.”

Downing Street insisted this lunchtime that it was not a choice between welfare and defence.

The PM's spokesperson said: “It’s not a zero-sum game when it comes to defence and welfare and you have his words on that.”

Earlier this week, the former NATO chief, Lord Robertson, urged the PM to spend less on welfare and more on keeping our nation safe.