Sir Keir Starmer is preparing to commit an extra £1 billion to the defence budget over the next four years, despite pressure from Andy Burnham’s team to delay the decision until his successor takes over.
New Defence Secretary Dan Jarvis is understood to have secured an offer of £14.5 billion in additional funding following tough negotiations with Sir Keir and the Treasury over the long-delayed Defence Investment Plan (DIP).
However, the figure is only just over half of the £28 billion needed to plug the Armed Forces funding gap — the same shortfall that led former Defence Secretary John Healey to resign on June 11.
In his resignation letter, Mr Healey said the original £13.5 billion offer fell “well short of what defence and the country need at such a dangerous time.”
Mr Jarvis and his team are said to view the revised offer as a win after earlier talks with the Government failed to make progress.
Speaking to GB News, Mr Jarvis admitted the Government must increase defence spending.
He said: “We’re spending more on defence than we have for more than a generation.
“But yes, I accept that we need to spend more, which is why we’re working through the Defence Investment Plan.
“That’s why I’m pushing to secure more funding and the right capabilities.”
Mr Jarvis said he is “confident” the long-delayed DIP will be published before the NATO Summit in Ankara, Turkey, on July 7.
The plan was originally due last autumn, drawing heavy criticism from politicians and defence industry leaders.
But Andy Burnham’s team has called for a further delay, arguing the likely next Prime Minister should be allowed to review it.
Sources close to the MP for Makerfield told the Telegraph the current Prime Minister has no mandate to publish the plan before the NATO summit.
They argue the DIP carries major national and international consequences, meaning the incoming Prime Minister should have a say.
Mr Jarvis, who said he has known Mr Burnham “for a very long time,” insisted the incoming Prime Minister would ensure the UK has the resources needed to defend itself.
He told the People’s Channel: “I know Andy takes national defence incredibly seriously, and as Prime Minister he’ll make sure we have the resources needed to protect our country.”
Mr Jarvis said he is “taking the time” needed to get the plan right, despite the summit being less than two weeks away.
He said: “I want to make sure the Defence Investment Plan is properly funded and delivers the right balance of capability.”
Mr Jarvis is also believed to have revised parts of the plan to make Britain more “war-fighting ready.”
The extra funding is expected to support uncrewed ground vehicles for the Army, with autonomous defence technology also set for investment.
One defence source said the extra cash helps, but major questions remain over how it will be spent.
They said: “More money is welcome, but we still don’t know how it will be allocated.
“The biggest issue is the DIP doesn’t fully fund existing programmes, let alone enough new capability.
“It’s progress, but still a drop in the ocean.”
Shadow Armed Forces Minister Mark Francois said the additional £1 billion “won’t touch the sides.”
He said: “Service chiefs have asked for £28 billion over four years to deliver Labour’s Strategic Defence Review.
“Compared with that, an extra £1 billion barely makes a dent. Even the revised total is only around half of what military leaders say is needed to keep Britain safe. Once again, the Treasury wins and the MoD loses.”
