Starmer to Take Penultimate PMQs Amid Criticism of Defence Investment Plan
Good morning. Yesterday, the defence investment plan (Dip) was published, likely marking the last major announcement of Keir Starmer's premiership. Today, he is expected to face his penultimate Prime Minister's Questions (PMQs), as he is anticipated to attend the NATO summit next Wednesday and deliver his final PMQs on 15 July. The session is expected to focus heavily on criticisms of the Dip.
There are three main areas of criticism:
Insufficient increase in defence spending. Military chiefs privately and retired military leaders publicly have long expressed concerns that the increase is inadequate. The Institute for Fiscal Studies (IFS) echoed this sentiment in a briefing, acknowledging that while the rise in defence spending under Labour has been substantial, it falls short of the commitments made last year by Starmer and other NATO leaders to reach 2% of GDP. Despite the announced increase, there is currently no credible plan to achieve this target.
Lack of proper funding. As detailed by Kiran Stacey and Dan Sabbagh in ’s lead story, the Dip includes a £15bn spending increase, but there is no clear explanation for the source of nearly £5bn of this funding. This presents a problem for Starmer, who was reportedly not briefed on this funding shortfall prior to the Dip’s publication, as well as for his chancellor. Former Tory defence secretary Liam Fox described the situation as Starmer leaving a “poisoned chalice” for his successor.
Funding partly reliant on unpopular cuts. Some of the Dip’s funding comes from cancelling road projects, which has upset Labour MPs representing affected constituencies. Hamish Falconer, a Foreign Office minister and MP for Lincoln, publicly expressed disappointment on social media regarding the threat to the A46 Newark bypass widening scheme. In the Commons, Jonathan Davies, MP for Mid Derbyshire, stated that shelving the A38 Derby Junctions scheme would hinder economic growth. Claire Ward, Labour mayor for the East Midlands, also criticized the disproportionate impact on her region during an interview on the Cathy Newman Show on Sky:
"What I’m complaining about today is that the East Midlands would appear to be the only region that has been told it is sacrificing its road investments programme in order to be able to contribute to the Dip."
Agenda for the Day
- 9.30am: MPs debate in Westminster Hall on banning MPs from holding second jobs.
- Morning: Defence Secretary Dan Jarvis visits Cambridgeshire.
- Noon: Keir Starmer faces PMQs.
- 2.15pm: Police chiefs provide evidence to the joint committee on human rights regarding protest policing.
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According to Sam Coates from , Andy Burnham’s team is "properly furious" about the £5bn funding gap in the Dip. On this morning, Coates remarked:
"I am old enough to remember when Rachel Reeves and Keir Starmer came into government complaining from every hilltop that the Tories did just similar by cutting budgets and failing to fully fund them. It’s no wonder that Team Burnham are, for the first time in this transition I think, properly furious, right? They’ve really avoided briefing until now, but it was made clear to me yesterday they are cross about this because they didn’t know and it’s a big headache."
Coates added that, compared to other budget and policy challenges facing Burnham’s administration, finding £5bn over four years (not annually) is unwelcome but not the largest issue.
Housebuilding in Scotland at Lowest Level in Nearly a Decade
Robyn Vinter, a reporter covering Scotland, reports that housebuilding in Scotland has fallen to its lowest level in almost ten years. Excluding the 2020-21 period affected by Covid-19, completions were the lowest since 2016-17, according to Scottish government statistics.
In 2025-26, 17,268 new homes were completed and 14,955 homes were started, representing a 10% and 4% decrease respectively from the previous year.
Critics warn that at this pace, the Scottish government’s target to deliver 110,000 affordable homes by 2032 will be significantly missed.
Scottish Labour housing spokesperson Mark Griffin stated:
"Scotland’s housing emergency is causing misery for families all over the country and this fall in housebuilding will fan the flames of the crisis."
Lib Dem MSP Morven-May MacCallum called for an end to inconsistent housing policies, adding:
"Too many Scots have nowhere to live or are paying through the nose. Housebuilding is going in the wrong direction and this needs to change."
Minister Defends Announcing Spending Plan Before Funding Details
Luke Pollard, a defence minister, spoke this morning defending the government’s decision to announce the Dip without specifying the source of approximately one third of the £15bn funding until the autumn budget. Speaking to Times Radio, he said that deferring funding details is "not unusual."
"We’ve announced a £15bn increase in defence spending, which is a huge boost for our readiness and helps us buy the kit and equipment that we need. Of the £15 billion extra spending power that we now have, the Treasury set out how £10bn or so of that will be spent … £4.7bn will be set out at the autumn budget. And that’s not unusual for governments to do."
Pollard cited Rachel Reeves’ announcement last summer of a £1.25bn plan, which similarly deferred funding details until the budget later that year.
When asked about reports that Andy Burnham and his team were unaware of the £5bn funding gap until the Dip’s publication, Pollard declined to comment. He told the Today programme that he only saw the funding details yesterday and was "not involved" in discussions with Burnham’s team.
Burnham is expected to become Prime Minister in just under three weeks.
Ministers ‘Furious’ Over Road Project Cuts to Fund Defence Plan
Jessica Elgot reports on the backlash concerning proposed cuts to road schemes intended to partially fund the Dip.
