Starmer warns successor against borrowing for defence in £15bn plan
7 reported
Prime Minister Keir Starmer announced a £15bn defence investment plan on Tuesday, funded by redirecting money from road and energy projects, after an 11-month government dispute that cost him his defence secretary. Starmer urged his likely successor, Labour MP Andy Burnham, to find more defence funding at the next spending review but warned against borrowing to pay for it. He rejected the idea of “defence bonds,” calling them “borrowing by another name,” and said borrowing would push interest rates higher. The plan adds £15bn over four years to the £283bn already allocated, with over £8bn for a new stealth fighter jet, over £63bn for nuclear weapons systems, and over £5bn for drones. Starmer did not deny reports that some funding came from delaying upgrades to military housing, and admitted much of the money comes from other departments’ capital budgets, meaning some infrastructure projects may be delayed or scrapped. Military chiefs have complained the additional funding falls short of what is needed, as the Ministry of Defence had requested £28bn beyond allocated funds.
What’s reported
Starmer announced a £15bn defence investment plan on June 30, 2026.
The funding comes from redirecting money from road and energy projects.
Starmer did not deny reports that some funding came from delaying military housing upgrades.
He warned successor Andy Burnham not to borrow to fund defence, rejecting “defence bonds.”
Over £8bn will go to a new stealth fighter jet, over £63bn to nuclear weapons systems, and over £5bn to drones.
The MoD had requested £28bn beyond allocated funds; military chiefs say the plan falls short.
Burnham is likely to become party leader on 17 July and prime minister on 20 July.
Key figures
Keir Starmer, prime minister
Andy Burnham, Labour MP and likely successor
Dan Jarvis, defence secretary
John Healey, former defence secretary
Sources: The Guardian
