STORY
Sir Keir Starmer is reported to be considering reductions in capital spending across Whitehall to help fund the Government’s defence ambitions. Reports suggest departments could face a 1% cut in capital investment, with net zero and transport budgets potentially facing deeper reductions.
The savings would be intended to support commitments linked to the Strategic Defence Review and the forthcoming Defence Investment Plan. Ministers are under pressure to show how new equipment, infrastructure, military housing and wider defence capabilities will be funded over the coming years.
The issue is politically sensitive because it places defence spending against other Government priorities, including infrastructure and the transition to clean energy. The debate is likely to intensify before the NATO summit, when the Government has promised to set out the investment plan.