Conservative leader Kemi Badenoch has accused the prime minister of "kicking defence spending into the long grass" as she set out Tory plans to push the figure to 3% of GDP by 2030. Badenoch said a Conservative government would fund the commitment, worth £10bn a year, through measures including reimposing the two-child benefit cap, reforming housing benefit and ending VAT exemptions for Motability cars. Pointing to the threat from countries like Russia and Iran, Badenoch told a press conference: "Conflict is coming, we must act now." So far Andy Burnham's government has only committed to setting out a plan in the spring to meet the Nato target of spending 3.5% of GDP on defence by 2035.
Speaking at an event in central London, Badenoch said: "Andy Burnham is kicking defence spending into the long grass. "Our enemies are not going to sit around and wait for Labour to find the money to fight them." Burnham has pointed to his choice of Chancellor, John Healey, who quit as defence secretary in June over the last government's failure to commit to a 3% increase, as proof of his commitment to defence investment. However, Badenoch said the prime minister should call a general election if he is not willing to find the money now, adding that Healey's decision to quit over defence spending appeared to have changed since he became chancellor.
"He resigned because Britain was not on track to reach 3% by 2030 and I praised him at the time for that decision," she said. "Now that he is chancellor he does not seem to believe that any more and I am concerned he has been bought off with a promotion." Burnham pressed on economy at first PMQs as borrowing costs surge Badenoch accuses Starmer of leaving defence spending 'mess' for Burnham Starmer dithering over defence spending, says Badenoch Badenoch repeated existing Conservative plans to fund an increase in defence spending, including by reimposing the two-child benefit cap. The cap, which was scrapped by Labour in April, meant parents could only claim universal credit or tax credits for their first two children.
She said the final part of her party's plans to reach the 3% spending figure on defence had now been completed. The Tories said this would include saving at least £4bn through reforms to housing benefit and removing the VAT exemption for Motability vehicles, saving £1bn. "Alongside savings from the disastrous Chagos deal and re-purposing money from the British Business Bank into defence, we will be able to hit that 3% target," Badenoch said.
Housing benefit made up about 12% of the government's welfare bill this year, with £37.3bn forecast to be spent, although it was not clear how much would be removed under Conservative plans. The Motability scheme, operated by a private company overseen by a charity, has historically given disabled people in receipt of eligible welfare benefits a 20% VAT discount on cars. Last year, Rachel Reeves made the first changes to the Motability scheme in 50 years, removing about 50,000 premium cars like BMWs and Mercedes from the scheme and reinstating 20% VAT for most new cars, along with higher mileage charges.
Challenged over whether she was increasing child poverty to fund defence by reimposing the two-child benefit cap, Badenoch denied this. "It is not going to increase child poverty. What increases child poverty is children's parents not having work or being paid low wages.
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