Starmer refuses to rule out tax hikes to fund defence spending

Prime Minister Sir Keir Starmer has refused to rule out tax hikes to fund defence spending.

Conservative leader Kemi Badenoch raised the issue at Prime Minister's Questions, asking whether taxpayers should expect an increase, and Starmer declined to respond directly.

The government’s defence investment plan is due to be published ahead of the Nato summit in Turkey, which begins on July 7.

It was originally planned for publication last autumn but has been repeatedly delayed.

In the Commons, Badenoch said, "There is still no defence investment plan."

She suggested the delay was due to Sir Keir Starmer not knowing "where the money is coming from" and said, "the military is waiting".

The opposition leader then went on to say that the government has three options: "cutting spending, more borrowing, or higher taxes", and asked whether Starmer would "rule out raising taxes”.

The PM pointed to the Conservatives’ record in office, accusing them of damaging the armed forces.

He added: “When they left office, 47 out of 49 major defence contracts were delayed or over budget.

“That is what we are fixing. You can’t just scrub away and forget".

He continued by pointing to Labour's increase in defence spending and said that the defence investment plan will be published "before the Nato summit coming up in just a few weeks' time".

Badenoch then said, “I asked him if he would rule out tax rises.

“He did not rule out raising taxes, so tax rises are coming.”

This all comes amid reports of a dispute at the heart of government over the investment plan, known as Dip.

Starmer and Chancellor Rachel Reeves are reportedly arguing for a £15 billion package, far less than the £28 billion which defence officials have called for.

Badenoch accused the PM of overspending in the last two budgets and said that the cost of benefits "is set to rise to over £200 billion by the end of the decade".

She said that the PM "has things the wrong way" and called for him to cut welfare to fund defence.

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In response, Starmer said: “We are not going to take lectures on defence from the party opposite after what they did to the armed forces, and nor are we going to take lectures on the economy, which they crashed and we had to pick up.”

He argued that the UK was leading on defence, referencing the so-called coalition of the willing.

Badenoch hit back, claiming that Starmer won't cut welfare "because he is too weak to stand up for our national security".

Starmer again pointed to the record of the previous government and said: “Defence spending went down, welfare spending went up £88 billion overall, on their watch, £33 billion under the shadow chancellor.”

Liberal Democrat leader Sir Ed Davey raised concerns that the hospital programme would be slashed to fund the shortfall in defence spending.

He said: “Surely in 21st century Britain, people can expect both a decent local hospital and armed forces that keep them safe. So, will the Prime Minister rule out any cuts to the NHS budget to fund defence?”

Starmer responded by saying that the government will "take the necessary measures to defend our country".

Meanwhile, ministers have been accused of “hiding” when the defence spending plans will be published to prevent parliamentary scrutiny.Defence minister Luke Pollard repeatedly refused to say whether the long-awaited plan would be published on Friday outside the House of Commons.Opposition MPs reacted with fury to the rumoured date, which is a non-sitting day, meaning members will not be able to provide scrutiny, with one Tory MP shouting that the minister was “a disgrace”.

Speaker Sir Lindsay Hoyle warned ministers against publishing on Friday, telling the Commons it would be a “kick in the face” and accused the government of treating parliamentarians as “second-class citizens”.

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