Keir Starmer set to slash Net Zero spending to bolster Britain's defence ahead of crunch Nato summit
Sir Keir Starmer is set to slash Net Zero spending in order to bolster Britain's defences ahead of next month's crunch Nato summit in Ankara.
Downing Street is said to have sidestepped the Treasury and told civil servants to find savings of at least one per cent in their capital spending plans that fund investment in infrastructure projects over the next four years.
Sir Keir is understood to have pushed for increased defence spending of about £18billion, while the Treasury pushed for a figure near £12billion.
While all Government departments will forced to make cuts amounting to about £6billion, it is understood No 10 is looking for larger cuts from Department for Energy and Net Zero.
One source told The Times this could involve scaling back the £9.4billion the Government had previously committed to carbon capture and storage projects.
Labour is still yet to unveil its long-awaited defence investment plan - an act which has embarrassed Britain on the global stage, according to a damning report from the Public Accounts Committee.
The plan was set to be announced on Thursday - ahead of the Nato summit on July 7 - but Government sources said the plans had still not been signed off and could still be delayed.
Deputy Prime Minister David Lammy told the BBC the plan would be unveiled before the gathering kicks off in Turkey.

Asked if he would be willing to cut some of the Ministry of Justice's budget in order to fund the armed forces, he said defence was the "first purpose" of the nation and stressed "the money will be found".
Nato member states have committed to investing 3.5 per cent of GDP to core defense spending by 2035, with the Prime Minister committing to spending 2.5 per cent of GDP by 2027.
Britain is currently ranked 31st of 32 countries on a list detailing how each country is progressing in hitting Nato's capability requirements.
A Government spokeswoman said: "We are the only European Nato member to commit our nuclear deterrent in full to the alliance.
We have always met our Nato spending commitments and remain one of the top defence spenders in the alliance as Nato's third-largest cash spender on defence.
"The UK plays a central role across Nato missions - from air policing on the eastern flank to our carrier deployment to the north Atlantic, and steadfast contribution towards Nato’s Arctic Sentry initiative."
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The cut to Net Zero projects comes as the head of one of the largest Labour-supporting trade unions called for Ed Miliband to rethink the Government's energy policies.
Gary Smith, general secretary of the GMB union, told The Times Labour's energy policy was being driven by ideological zeal rather than evidence.
He said: "Sacking thousands of workers who currently work in the North Sea is economic madness.
"The impact they’re having is shameful. It’s more akin to Thatcher and what she did to Middlesbrough in the 1980s."

The energy policy and ideological zeal was driving GMB members towards Reform UK, he added.
"Closing down North Sea oil and gas, and the impact that energy policy is having on the manufacturing industry in this country, is a disaster for many working people, and it is driving people towards the arguments that Reform put forward," Mr Smith said.
The GMB boss ruled out ending funding for Labour - suggested by other unions including Unite - arguing that working people needed a strong political voice.
"We're very clear, Reform is no friend of trade unionists, it's no friend of organised labour and people in the GMB," he said.
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