- Andy Burnham, the prospective prime minister, is facing mounting pressure from Labour MPs and charities to rule out using welfare cuts to fill a £4.7bn shortfall in the defence spending plan.
- Allies of Mr Burnham claim he is 'seething' that Sir Keir Starmer left him with this 'poison pill' funding gap, which the Treasury has yet to fully explain how it will be funded.
- Labour MPs, including Rachael Maskell and Brian Leishman, are warning against repeating previous failed welfare reforms and suggest looking at companies with excessive profits, including in the defence industry, for funding.
- Alternative options to fill the gap include raising the top rate of income tax, which a YouGov poll shows public favour, or further cuts to other departmental budgets, which have already caused anger among some MPs.
- Chancellor Rachel Reeves has cautioned against borrowing more to fund defence, emphasising the importance of strict fiscal rules, while Sir Keir Starmer defended the plan against criticism from Kemi Badenoch.
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