Chancellor Rachel Reeves has been accused of "failing to prioritise national security" after it emerged she has been blocking funding to the Ministry of Defence over concerns about the department's gender balance.
According to the Spectator, Ms Reeves reportedly told officials: "Why should we give money to a department that's so far away from gender parity?"
The Treasury and MoD remain locked in a bitter dispute over defence budget increases, with the long-awaited Defence Investment Plan still unreleased despite promises it would arrive last autumn.
Ms Reeves has proposed a £10billion uplift spread across four years, yet the department confronts a £28billion shortfall in its finances.
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Additionally, the MoD has been instructed to slash £3.5billion from its budget this year.
Shadow Defence Secretary James Cartlidge has launched a scathing attack on the Chancellor, accusing her of choosing welfare spending over military preparedness.
He told the Express: "It's hard to believe that the Chancellor is denying the vital funding the MOD needs because there are too many men in the Army, but this story does underscore that we are now seeing a daily briefing war over the Defence Investment Plan."
Mr Cartlidge insisted that Labour had opted to pour billions into benefits, rather than adequately resource Britain's armed forces.
The MOD has been instructed to slash £3.5billion from its budget this year
| MoDHe pointed to former Labour Defence Secretary Lord Robertson, who previously stated: "Starmer cannot defend Britain with an ever-expanding welfare budget."
The Conservatives have proposed reinstating the two-child benefit cap and redirecting those savings towards defence, alongside diverting funds from what Mr Cartlidge termed Ed Miliband's "vanity Net Zero projects" to achieve three per cent of GDP on defence spending this parliament.
Labour has committed to raising defence spending to 2.5 per cent of GDP by next year, with a pledge to reach three per cent during the following parliament.
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Ms Reeves reportedly told officials: 'Why should we give money to a department that's so far away from gender parity?'
| PAHowever, this timetable has attracted widespread criticism for being insufficient given current threats.
Defence minister Al Carns recently issued a stark warning that Britain could find itself at war with Russia within three years.
UK defence industry leaders have indicated they stand ready to supply the MOD with essential equipment and munitions as part of efforts to rearm and deter future aggression.
Yet the continued delays to the Defence Investment Plan are hampering small and medium-sized enterprises that specialise in advanced technologies such as drones, leaving them unable to scale up production without confirmed orders from the ministry.
Rob Taylor, a 38-year-old former Royal Marine who founded defence technology firm 4GD, said procurement activity has failed to recover to levels seen before the 2024 general election.
He explained that while the pre-election spending pause during purdah was standard practice, momentum never returned afterwards.
Shadow Defence Secretary James Cartlidge has launched a scathing attack on the Chancellor
| GB NEWS"Then we went in to wait for the Strategic Defence Review. Then we went, let's wait for the defence industrial strategy. And then we went, right, let's wait for the defence investment plan," Mr Taylor said.
He described the situation as "excuse after excuse after excuse," whether deliberate or not.
Mr Taylor added that the fundamental problem was a lack of available funds, with nobody being honest about the financial reality facing the department.