Weapons Instead of Roads and Energy
The defence investment plan that the new occupant of Number 10 will have to implement is facing a funding shortfall running into billions of pounds. Many on social media argue that the gap will ultimately have to be filled by lowering the public’s standard of living.Defence and security — intended to be Keir Starmer’s lasting legacy — are instead becoming a major headache not only for his successor, but for the country as a whole. That is the view of The Telegraph columnist Mike Martin. Defence spending is due to rise by £28 billion over the next ten years, yet the Treasury has already admitted that no such funding exists within the current budget. That means significant cuts will have to be made elsewhere.
Infrastructure Faces the Axe
Starmer’s plan claims that the Ministry of Defence will save £10 billion through "efficiency savings". However, the Chair of the Public Accounts Committee has dismissed this as "an old accounting trick". According to The Telegraph, the Ministry of Defence has never previously achieved savings on this scale through efficiency measures, and no one has explained how it intends to do so now. The Treasury is prepared to provide £15 billion, but warns that this will require spending cuts in other departments.
Andy Burnham will somehow have to find the remaining £4.7 billion, and do so in time for a Budget expected as early as this autumn. By his own admission, the scale of the problem came as a surprise.
Announcing spending commitments without securing the necessary funding was precisely what Keir Starmer criticised the previous Conservative government for. As Mike Martin observes, "the fact that he has done exactly the same thing is the very essence of Starmerism."
Concerns Have Been Raised
According to the Prime Minister’s Office, alongside cuts to transport and energy spending, hospital building programmes may also be scaled back. Overall, spending on major infrastructure projects is expected to be reduced by at least 1 per cent. However, the full list of affected projects is unlikely to be published until the autumn.
During the debate on the outgoing Prime Minister’s defence programme, he was criticised both for the general decline in living standards and for the scandal involving grooming gangs.
Nevertheless, Labour has no intention, for the time being, of abandoning its Defence Investment Plan. By the autumn, it should become clear which other public services and programmes taxpayers will be expected to sacrifice in order to fund it.