Business & Finance
Reeves grudgingly resorts to departmental salami slicing to fund UK defence budget
The Guardian Politics
Friday 12 June 2026, 13:00 UTC
By Heather Stewart Economics editor
1 min read
Key Points
Starmer shows no will to pursue the main options for rising commitments: spending cuts, tax rises or borrowingUK politics live – latest updatesBusiness live – latest updatesWhen Keir Starmer wanted to promise Donald Trump that the UK would increase defence spending, he decided to fund it by slashing the UK’s aid budget – losing a cabinet minister, Anneliese Dodds, in the process. This time around, with John Healey’s Ministry of Defence (MoD) demanding an additional £18.5bn over four years to...
Starmer shows no will to pursue the main options for rising commitments: spending cuts, tax rises or borrowing
When Keir Starmer wanted to promise Donald Trump that the UK would increase defence spending, he decided to fund it by slashing the UK’s aid budget – losing a cabinet minister, Anneliese Dodds, in the process.
This time around, with John Healey’s Ministry of Defence (MoD) demanding an additional £18.5bn over four years to fund the defence investment plan, there was no such lever to hand.
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Originally published by The Guardian Politics
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