Starmer scrambles to make savings in bid to boost defence spending
Keir Starmer is planning on making cuts across the government in a bid to fund his long awaited Defence Investment Plan.
The prime minister will make targeted slashes to transport and net zero spending by 1 per cent in a bid to raise approximately £6bn for defence costs by the end of this parliament.
Starmer also plans to cut capital spending, which accounts for funding infrastructure and building projects across all government departments, according to The Times.
The net zero department, led by Ed Miliband, and Heidi Alexander’s transport ministry will see further cuts too.
The highly anticipated Defence Investment Plan (DIP), which is estimated to be providing between £15bn and £18bn of funding, was due to be published this week, but talks have continued over the weekend in its absence.
The savings will be used to administer the Strategic Defence Review – a ten-year defence plan which involves creating and developing a new nuclear warhead, including a fleet of combat drones and next generation Tempest fighter jets.
Many ministers have opposed the cuts but the majority have now accepted them.
It is understood that Chancellor Rachel Reeves is “deeply frustrated” with Starmer’s decision to make the cuts in his attempt to boost defence spending.
Reeves is reportedly working with No 10 to reach a solution.
The Ministry of Defence said the Defence Investment Plan will “deliver the best kit and technology into the hands of our frontline forces at speed, while investing in and growing the UK economy.”
This follows Nato’s military chief, Admiral Giuseppe Cavo Dragone, urging Britain to speed up the delivery of its defence pledges last weekend.
NHS set to suffer
Key public services including the NHS and schools are set to face budget cuts too.
In terms of capital spending, health and education budgets could be badly impacted. A 1 per cent slice made to the Department for Health and Social Care’s capital funding would amount to £580m.
For example, NHS England’s maintenance backlog bill is already sitting at a record £16bn and despite Labour raising funding for the health service, capital spending has stayed stagnant and many hospitals are at risk of collapse.
“While many people can understand the need to increase defence, this will potentially come at a cost to the quality and access of healthcare,” Siva Anandacivam director of policy at the King’s Fund health think tank said.