- Chancellor Rachel Reeves has indicated that the government may need to raise taxes to fund an increase in defence spending, ruling out further borrowing.
- She stated that pressures to fund defence are 'only going in one direction' and that higher taxes are preferable to climbing interest rates and UK risk premia.
- The government's Defence Investment Plan, detailing long-term funding and strategy for the armed forces, is due to be published before next month's Nato summit.
- Reports suggest that No 10 has instructed departments to find one per cent cuts to their capital budgets to help meet the defence commitment.
- Former military leaders have expressed serious concerns about the current state of Britain's armed forces, citing a lack of investment and calling it a 'national embarrassment'.
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