A group of MPs has warned that the chronic delay in releasing the government's defence investment plan has harmed the military and left the country less safe, as Whitehall sources reveal the standoff has triggered some of the worst infighting since Labour took power.
Cabinet relations have been badly damaged by the protracted row over the defence investment plan (Dip), according to sources who say the months-long dispute between the Ministry of Defence, the Treasury and No 10 has left senior members trading accusations. “The whole process has been a mess,” said one Whitehall official. “First the Ministry of Defence told everyone their plans were fully costed and didn’t need extra cash. They infuriated people by then coming back and asking for billions more, but then the Treasury absolutely refused to budge, dragging this out for much longer than they should have.”
“Rows over defence investment plan have badly damaged cabinet relations and left UK less safe, MPs warn.”
The plan is now close to sign-off, after departments agreed to cut their capital budgets by about 1% to pay for additional military spending. But the damage to trust runs deep. Allies say Keir Starmer wants the plan to form part of his legacy should he be replaced as prime minister by the Greater Manchester mayor, Andy Burnham, in the coming weeks.
Starmer agreed last February to increase defence spending to 2.5% of GDP, believing it would fund the promises made in the strategic defence review. That review was published in June alongside the cross-government spending review, which confirmed nearly £20bn extra for the MoD over five years. Within months, however, defence officials said they would need another £28bn over the next four years. “The MoD conducted a defence review at the same time as the Treasury was doing its spending review specifically to avoid this scenario,” said one government source. Another added: “The MoD has a terrible record in keeping its costs down so it is galling to be asked for more money just months after the defence review.”
Defence secretary John Healey ended up requesting about £18bn from the Treasury, but chancellor Rachel Reeves refused to sign off on anything above £12bn for weeks. In the end Starmer put heavy pressure on the chancellor. Starmer’s spokesperson said on Monday: “The prime minister is determined to get the Dip right to ensure we deliver the best equipment and technology into the hands of our frontline forces, whilst investing in and growing the UK economy.”
The plan is expected to be published in the coming weeks, but the group of MPs warned that the delay has already undermined the UK's credibility and left the country less safe.