Labour can’t decide on how to pay for defence spending

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Keir Starmer has refused to rule out tax rises to pay for the plan to increase defence spending to 2.5% of GDP. Ministers have been rowing about the subject for weeks, as Labour struggles to find the money needed to fund the uplift. This indecision has delayed the publication of an investment plan that was supposed to be released this autumn and is expected soon. Starmer has told government departments to trim their capital spending by 1%, and there is talk of steep cuts to the net zero and transport departments. A plan to refurbish dilapidated military homes could also be delayed. But this cost-cutting exercise may not free up enough cash.