Conservative leader Kemi Badenoch has accused outgoing Prime Minister Sir Keir Starmer of leaving a funding gap in the government's new defence investment plan, claiming his successor will inherit an unfinished financial commitment.
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The dispute follows the publication of the long-awaited Defence Investment Plan (DIP), which pledges an additional £15 billion for the UK's armed forces by 2030. The strategy, unveiled on Tuesday ahead of next week's Nato summit, is intended to strengthen Britain's military readiness for future conflicts.
However, Defence Minister Luke Pollard confirmed that only £10.3 billion in funding has so far been identified. The remaining £4.7 billion will have to be found by the next chancellor in the autumn Budget.
Defence plan sparks political clash
At Prime Minister's Questions, Badenoch said the government had failed to fully fund its own proposals and questioned whether Andy Burnham, who is widely expected to become prime minister on 20 July, had agreed to cover the shortfall.
She argued that the government had prioritised welfare spending over defence and said the investment plan was effectively "£5bn short". Badenoch also claimed the UK had increased defence spending by only 0.01% over the past two years compared with its allies, adding that the government's figures "didn't add up".
Starmer defends investment plan
Sir Keir dismissed Badenoch's criticism as "faux outrage" and accused the Conservatives of reducing defence spending while they were in office.
He said Labour had been able to increase defence spending because Chancellor Rachel Reeves had created sufficient fiscal headroom in last November's Budget. Sir Keir added that he was proud of the government's defence strategy and said any Labour prime minister would support it.
The £15 billion package remains below the £28 billion reportedly sought by defence chiefs and former defence ministers John Healey and Al Carns, who resigned in protest over the scale of the investment.
Downing Street declined to say whether Burnham had approved the plan or whether his future chancellor would be expected to use Budget headroom to finance the remaining £4.7 billion.
Earlier on Wednesday, Pollard told BBC Breakfast that whichever chancellor takes office after the leadership transition would need to find the necessary funding in the autumn Budget, describing the process as routine for governments. He also said Burnham had only been informed of the funding gap on Tuesday and expressed support for him becoming prime minister.
Burnham has not publicly commented on the defence plan.
Spending cuts to fund defence
Sir Keir ruled out additional borrowing to finance the defence increase, saying the money would instead come from reducing long-term capital investment budgets across other government departments by 1%.
Liberal Democrat leader Sir Ed Davey argued the funding package left the UK "vulnerable to missile attack" and said the investment fell well short of what was needed. Sir Keir rejected the Liberal Democrats' proposal to issue defence bonds, saying ministers had examined the idea but concluded it amounted to borrowing under another name.
Road projects face uncertainty
The government's effort to redirect spending has also triggered concerns over infrastructure projects.
The Department for Transport is expected to save £700 million by reviewing road schemes, with the A38 Derby Junctions project and the A46 Newark Bypass among those being considered for cancellation. The Department for Energy Security and Net Zero is also expected to contribute £2 billion in savings, largely through efficiency measures.
Downing Street said further details of departmental reductions would be announced in the autumn but did not provide a comprehensive list of affected projects. Officials also declined to rule out cuts to rail investment, although they said frontline NHS services would be protected.
The potential cancellation of road schemes has drawn criticism from local politicians. Labour's East Midlands mayor Claire Ward described the proposals as "completely unacceptable", while Newark MP Robert Jenrick demanded an explanation from the transport secretary. Lincoln MP Hamish Falconer expressed disappointment over uncertainty surrounding the A46 project, and Mid Derbyshire Labour MP Jonathan Davies warned that reducing transport investment could slow economic growth.
Asked about the criticism, the prime minister's spokesman said the government was prioritising Britain's security in what he described as "a more dangerous world."
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Adapted by ASEAN Now. Source 2 July 2026