Rachel Reeves warned of £32bn defence black hole exposed in Autumn Budget
A £32bn defence black hole has been exposed in Rachel Reeves's Budget, as watchdogs warn her plan to reach 3.5% of GDP on defence is unfunded.
A staggering £32billion defence black hole has been uncovered in Rachel Reeves's Autumn Budget, after the official spending watchdog revealed that the Government’s promise to reach 3.5 per cent of GDP on defence has not been budgeted for.
The Office for Budget Responsibility warned in its forecasts that there were "several risks to departments over the spending review period" due to soaring inflation.
It means the pledge to lift defence spending to 3.5 per cent of GDP by 2035 would cost an extra £32billion in today's money, cash simply not set aside in the Budget.
Read more: Huge blow for Keir Starmer's EU 'reset' as talks about new defence deal fail
Read more: Express readers say whether UK should bring back National Service like France
Shadow Defence Secretary James Cartlidge said the findings were "absolutely shocking", adding: "At a time of the gravest threats, it is unprecedented for our most senior military leaders to expose Labour's gulf between their rhetoric and reality."
He accused Ms Reeves of prioritising welfare over defence, saying: "Whilst the Budget delivered billions extra for benefits, there was no new money for Defence, and not even a mention of Labour's previous plan to get to 3 per cent."
He added: "In that context, it's no surprise there is huge uncertainty in the MOD on how they can possibly plan their budget."
It comes as the UK's attempt to join a pan-European defence fund, known as SAFE, collapsed, after Britain and Brussels failed to agree on how much the UK would be expected to pay.
Eurocrats demanded a huge €6.75billion (£5.9billion) contribution, a price Whitehall reportedly refused.
An MOD spokesperson said: “This week's Budget backs Britain's security now and for the longer term.
“We're delivering the largest sustained increase in defence spending since the Cold War – reaching 2.6% of GDP by 2027, with an ambition for 3% in the next Parliament if fiscal and economic conditions allow.
“That means over £270bn invested in delivering for our front line, boosting national security and making Britain safer, secure at home and strong abroad.”
It was reported that Military chiefs had warned the Treasury they would need more money, or the armed forces would face significant cutbacks.
Earlier this week, the Spectator reported that the Chief of Defence Staff, Admiral Chief Marshall Sir Richard Knighton, and other senior defence heads sat down and agreed to write to the Defence Secretary John Healey, to tell him the Strategic Defense and Security Review would not be deliverable with current funding.
