Rachel Reeves digs heels in over defence boost despite fears that UK security is ‘in peril’
Despite warnings that Britain is “in danger” as a result of its weak military, Rachel Reeves is said to be ready for a major increase in defense spending.
The Armed Forces are thought to face a financial black hole of around £28bn over the next four years, but the Chancellor has reportedly approved plans for only a “limited” increase to the Ministry of Defense budget due to concerns about how the Iran war will affect public finances.
It comes after Sky News reported that defense chiefs will meet this week to discuss expected £3.5bn cuts to the military budget for the current financial year.
UK military commanders have been asked to find billions of dollars in “efficiency” money, despite Sir Keir Starmer saying he is preparing his armed forces for war, the broadcaster reports.
Chancellor’s proposal for just £10bn boost to defense budget TimesIt comes as it prepares a targeted energy recovery plan for vulnerable households.
He is also expected to abandon plans to increase fuel taxes in September; This policy is expected to cost around £2.6 billion.
Sources told the newspaper that Ms. Reeves was not willing to break fiscal rules or raise taxes to increase defense spending.
This comes despite some stern warnings from prominent military figures in the face of increasing global turbulence with escalating conflict in the Middle East and ongoing war in Ukraine.
On Tuesday, a host of former defense ministers and Labor dignitaries rowed behind a former NATO secretary-general who warned that the UK’s security was “at risk” due to Sir Keir Starmer’s “corrosive indifference”.
Former Labor defense minister George Robertson, appointed by the Prime Minister to write the government’s Strategic Defense Review (SDR), accused “non-military experts” at the Treasury of “vandalism” in a speech on Tuesday and claimed Sir Keir was unwilling to “make the necessary investment” in Britain’s defence.
Building on Lord Robertson’s criticism, former defense minister Malcolm Rifkind argued that the government’s “core responsibility” was defense and called on ministers to fund this by cutting benefits or increasing income tax.
Jack Straw, foreign secretary under Tony Blair, praised Lord Robertson’s intervention, saying: Independent: “As George has pointed out, it is of great urgency to take the necessary decisions to bring the defense spending program to a level that meets our needs now and in the future, while also cutting non-essential welfare spending.”
Meanwhile, Former Tory defense secretary Ben Wallace said: “Lord Robertson, like all of us, is increasingly frustrated with a prime minister who talks the talk but does not follow it up with funding and action. The prime minister needs to show leadership, not direct our defence.”
On Wednesday, Fiona Hill, another co-author of Britain’s SDR, joined Lord Robertson’s criticism and warned of a “peculiar” lack of urgency in defense planning.
He told the Guardian: “We don’t have a sense of urgency, it’s a really strange situation given what’s going on…
“George says very clearly that there is a lack of decisive leadership on this issue, because everyone is worried about the votes and the backlash on the left and right.”
Downing Street hit back at Lord Robertson’s claim that Britain was “under-prepared” and “under-insured”, with the prime minister’s official spokesman saying: “I completely reject this. As I have said, our armed forces are working around the world every minute of the day to keep us safe at home.”
The government has promised to publish a 10-year defense investment plan to fund the SDR, but this plan has been beset by repeated delays; This sparked criticism and concern from MPs on both sides of the House of Commons.
Meanwhile, savings during the year were cited as the reason for the delay in sending HMS Dragon to Cyprus, weeks after the Iran crisis began and the UK’s base on the island was attacked by Tehran.
There are also ongoing questions about the downsizing of the army, which has fallen to around 70,000 personnel, and the use of poor quality and outdated heavy vehicles and tanks.
Sir Keir told MPs on Monday that the government was working to finalize its defense investment plan but did not want to repeat the mistakes of previous administrations because “we inherited plans that were unfunded and impossible to deliver”.
The government has committed to spending 2.5 percent of gross domestic product on defense by 2027; this figure will rise to 3 percent in the next parliament, and NATO has a target of 3.5 percent by 2035.
Ms Reeves is set to meet her US counterpart Scott Bessent in Washington on Wednesday after arguing that the “some economic pain” caused by the Iran war was worth preventing Tehran from acquiring nuclear weapons.
The US treasury secretary’s comments put him at odds with the chancellor, who has publicly expressed anger and disappointment at the “stupidity” of America’s actions in the Middle East and its financial impact on families.
The two were due to hold face-to-face meetings during the spring meetings of the International Monetary Fund (IMF), which will be dominated by the ongoing crisis in the Gulf, which has caused a global economic shock and caused energy prices to rise.
A government spokesman said: “We have delivered the largest sustained increase in defense spending since the Cold War, bringing total investment across this Parliament to over £270bn.
“We are finalizing our Defense Investment Plan, which we will publish as soon as possible, rebuilding British industry to make defense an engine of growth and doubling down on our commitment to NATO.”
