Keir Starmer's Labour government has been accused of a defence spending shortfall, sparking heated exchanges in Prime Minister's Questions. The newly announced Defence Investment Plan (DIP) aims to increase UK defence spending from 2.6% of Gross Domestic Product (GDP) in 2027 to 2.7% by 2030 – nearly £80 billion – but critics argue this will leave the next Labour prime minister facing an additional £4.7 billion funding gap.
During PMQs, Mr Starmer vigorously defended the DIP, which has drawn criticism from within his own party, government ministers, and Members of Parliament over cuts to transport infrastructure projects redirected to fund defence initiatives. While the plan outlines a projected increase in overall defence spending, it falls short of NATO's 3.5% target by 2035 – a commitment made last year under pressure from former US President Donald Trump.
The Institute for Fiscal Studies has highlighted that the DIP lacks a clear strategy to reach the 3.5% NATO target, with an ally of Andy Burnham describing the plan as an “unexploded bomb.” Reports suggest Mr Burnham was not fully briefed on the extent of the funding gap when the announcement was made.
Kemi Badenoch, a prominent Conservative MP, led the charge against the DIP during what could be Mr Starmer's penultimate PMQs. She accused Labour of producing an insufficient plan and urged welfare spending cuts to fund defence, stating: “It is not right, and it is not fair, certainly not to our troops who put their lives on the line for all of us every single day.” Ms Badenoch added that Labour's plan was “too weak, too little, and too late.”
Mr Starmer dismissed Conservative criticisms as “faux outrage,” highlighting Tory cuts to defence spending and increases in welfare spending by £88 billion during their 14 years in power. He pointed out that his government had allocated an additional £15 billion for defence outside of a formal budget or spending review, and clarified that decisions made in the last budget created a £22 billion headroom to facilitate such investments.
In response to Ms Badenoch's question about whether Mr Burnham was aware of the alleged £5 billion funding gap, Mr Starmer avoided a direct answer, instead emphasising the government's commitment to defence spending. The row highlights the challenges facing the Labour leadership ahead of next year's general election.