Sir Keir Starmer's authority was left in tatters last night after the shock resignation of his Defence Secretary and Armed Forces Minister over a lack of defence funding.
The former, John Healey, suggested Sir Keir had been "unable" to overrule Rachel Reeves and secure vital cash for Britain's forces under the Defence Investment Plan (Dip) - which still hasn't been released.
Lord Dannatt, the former head of the Army, demanded that either Sir Keir or Ms Reeves quit altogether, while former Navy head Lord West told The Telegraph: "The Treasury has won in their fight, and Britain is in more danger because of it."
"This just makes the end more certain," one minister told The Guardian.
Finger-pointing then broke out around the Cabinet table, with allies of the Prime Minister and Chancellor blaming each other for leaving the Armed Forces high and dry.
One Government source claimed the Chancellor "didn't put in the work" to fund defence, while Treasury sources briefed that she had prioritised defence in a "record" budget increase last year.
Another Treasury insider claimed Mr Healey had been asking for "cuts to schools and hospitals" to fund the Forces - sparking outrage given looming war threats around the world.
Reform UK's Danny Kruger branded Sir Keir a "zombie", while veteran Labour MP Graham Stringer said he was now a "dead Prime Minister walking".
"He didn't have a future before and he certainly hasn't got one now," Mr Stringer said. "He will be remembered as an unpatriotic prime minister who did not take the decisions necessary to make this country’s military personnel safe."
FOLLOW BELOW FOR LIVE UPDATES THROUGHOUT THE DAY...
Kemi Badenoch continues calls for Keir Starmer to resign - 'The Prime Minister’s time is up'
Kemi Badenoch has doubled down on her call for Keir Starmer to resign
|PA
Kemi Badenoch has doubled down on her call for Keir Starmer to resign after the shock resignation of his Defence Secretary and Armed Forces Minister over a lack of defence funding.
The Conservative leader took to social media, claiming Britain's armed forces have "lost all faith" in Sir Keir.
Mrs Badenoch wrote: "First the Defence Secretary resigned saying the government is making the country and our troops less safe.
"Then the Veterans Minister went, saying the government is abandoning our veterans and it’s harming our national defence.
"It’s clear the armed forces have lost all faith in Keir Starmer.
"A Prime Minister who cannot command the respect of our military cannot continue in office. Britain’s national security must come before Keir Starmer’s ego.
"The Prime Minister’s time is up."
GDP contracts by 0.1% as US-Iran squeezes household finances
The UK economy slowed down in April 2026, with the country's gross domestic product (GDP) contracting 0.1 per cent, according to the latest figures from the Office for National Statistics (ONS).
Economists had priced in a drop in GDP as households start to feel the squeeze after the US-Iran war sent fuel prices surging.
Chancellor Rachel Reeves is under further pressure to course-correct the economy amid the ongoing conflict in the Middle East.
'Timing couldn't be worse!' Keir Starmer just weeks away from Nato summit - and face-off with Donald Trump
Keir Starmer just weeks away from Nato summit - and face-off with Donald Trump
| GETTYThe Former Chief of Defence staff said that John Healey's resignation could not have been more poorly timed ahead of the crunch Nato summit later this month and talks with President Donald Trump.
General Nick Carter told the BBC that due to the "very dangerous times" the world finds itself in, Britain must "spend more money than we have spent in the past".
“We’ve always, from a British perspective, been able to play the card of punching above our weight when it comes to defence, and it’s very difficult for us to do that now," he warned.
“In terms of the timing, it couldn’t be more terrible, what with the G7 next week and a Nato summit in Ankara in early July that President Trump said he was going to come to personally.”
Nato allies have voiced their disappointment following Mr Healey's exit from Government, with Belgian Defence Minister Theo Francken branding it "a blow to our alliance".
His Italian counterpart said he agreed with Mr Healey on "almost everything" he said about Sir Keir Starmer's defence spending plans.
Al Carns to speak to GB News this morning - follow live
Al Carns, the Armed Forces Minister who followed John Healey out of Government last night, will be speaking to GB News in the coming hours.
Mr Carns is set to appear on The People's Channel shortly after 8.30am - we'll bring you the latest from his grilling as soon as we get it.
Ben Wallace: Labour's accounting tricks are leaving Britain in danger
Former Defence Secretary Sir Ben Wallace has praised former John Healey’s "principled" decision to resign - and blamed Rachel Reeves’s "accounting tricks" for leaving him in an impossible decision and putting Britain in danger.
He told the Daily Mail: "Ever since she took the reins at the Treasury, she has prioritised spending on benefits and used accounting tricks to avoid the tough decisions needed to keep us safe.
“Labour has trashed Britain's reputation in Nato and the failure to deliver the Defence Investment Plan has made us a laughing stock. His loyalty to his party and the PM was not reciprocated by them when it mattered.”
Sir Ben has previously warned of “Treasury tricks” and "tucking under" being used to artificially inflate the defence budget.
Earlier this year, in a reply to Defence Minister Luke Pollard on social media, he said: "There isn’t any real defence spending increases other than Treasury tucking under, unfunded bills for Chagos, pay and National Insurance consequences.
"You know it, I know it and the Russians know it. Stop spinning and treating the public like fools."
READ THE FULL STORY ON THE 'HIDDEN TAX' BLIGHTING THE ARMED FORCES HERE
Revealed: What US Secretary of War REALLY thought of John Healey
A defence insider has revealed what John Healey's American counterpart really thought of him after his dramatic exit from Cabinet.
The ex-Defence Secretary had a falling out with Pete Hegseth during his visit to Washington in March over the issue of Ukraine, the source told The Telegraph.
Mr Healey "worked hard" to build a good relationship with him, the source said, but had pushed hard for the Trump administration to back Kyiv militarily.
He was seen in Washington as “Johnny One Note on the issue of Ukraine” and “Hegseth’s role in implementing Trump’s campaign promise to pull back funding for the Ukraine war made an already difficult personal interaction even more awkward", they added.
“There was really no other priority that he expressed at a macro level… that was just fundamentally at odds with President Trump’s new approach.”
Labour leadership hopefuls lie in wait as Cabinet torn apart by defence row
Sir Keir Starmer's would-be replacements both reacted to last night's turmoil - which also exposed deep rifts in the Cabinet they're looking to lead.
Although he did not comment directly on the defence row, an ally said Andy Burnham "gets" defence and it would be considered a "key plank" of any future Labour Government spearheaded by him.
Meanwhile, fellow leadership hopeful Wes Streeting called for “every word of warning” from John Healey's resignation letter to be "heeded".
Burnham ally Luke Charters also weighed in, declaring: "This is a crystal-clear case of the incrementalism and managerialism that has beset this Government. It is the reason I left the Government and the reason I am supporting Andy."
Chancellor Rachel Reeves is being held responsible for the delays surrounding the defence spending plan after she "did not put in the work" to find more funding, Sir Keir Starmer's allies told The Telegraph.
Her position was lambasted by one ally as "ridiculous" due to the amount of money being "wasted" on welfare and digital ID.
Chief of the General Staff issues rallying cry to Armed Forces amid MoD disarray
The Chief of the Defence Staff has issued a rallying cry to Armed Forces members after the Ministry of Defence was plunged into chaos by double-resignation.
A leaked internal memo sent from Sir Rich Knighton has called on serving Britons to "remain apolitical and are not drawn into speculation" over "decisions that are for ministers".
The Air Chief Marshal said: "In uncertain times, it is more important than ever that we stay focused on our duty to defend the UK and its interests across the world without fear or favour.
"The work our armed forces do matters, and it matters more than it has done for many years."
"You should be rightly proud of the role you play in keeping us safe," he concluded.
RECAP: Keir Starmer acts swiftly to appoint new Defence Secretary after shock John Healey resignation
Downing Street confirmed the Prime Minister had handed ex-Security Minister Dan Jarvis the top job on Thursday evening
| GETTYSir Keir Starmer swiftly appointed a new Defence Secretary after John Healey's shock resignation yesterday.
Downing Street confirmed the Prime Minister had handed ex-Security Minister Dan Jarvis the top job on Thursday evening.
He was catapulted into the role less than an hour after Armed Forces minister Al Carns quit from Government.
Mr Healey and Mr Carns were followed out of the door by parliamentary private secretaries (PPSs) Pamela Nash and Rachel Hopkins, putting an end to a day of bruising resignations in the Ministry of Defence...