Labour MPs warn Burnham not to cut welfare to fund defence boost despite '£15bn' hole in Starmer's plan

By JAMES TAPSFIELD, UK POLITICAL EDITOR Published: 09:15, 2 July 2026 | Updated: 09:18, 2 July 2026 Labour MPs are warning Andy Burnham not to cut welfare to fill a black hole of up to £15billion in new defence plans. The PM-in-waiting is facing an early threat from his own benches as he prepares to take over from Keir Starmer in a little over a fortnight. Sir Keir pushed ahead with unveiling the long-awaited Defence Investment Plan (DIP) this week, trumpeting £15billion of extra funding over the next four years. However, it has emerged that £4.7billion of that cash will have to be found at the next Budget. Departmental cuts have been earmarked to cover the rest, but Downing Street was unable to say exactly what will be trimmed yesterday. Mr Burnham's allies have accused the outgoing PM of leaving an 'unexploded bomb' for his successor. Labour MPs are warning Andy Burnham not to cut welfare to fill a black hole of up to £15billion in new defence plans The PM-in-waiting is facing an early threat from his own benches as he prepares to take over from Keir Starmer in a little over a fortnight The DIP did not set any timetable for defence spending hitting 3 per cent of GDP, or the 3.5 per cent target agreed by Nato - which would require an extra £25billion a year.  Kemi Badenoch has been urging the Government to revive benefits curbs - effectively abandoned by Sir Keir after a previous Labour revolt - to help free up cash. However, Left-wing Labour MPs have been making clear they will not tolerate reductions in handouts.   Backbencher Brian Leishman said: 'It's always people who suffer from 'tough political choices'... 14 per cent of kids in the UK live in food insecurity.  'Three million people need foodbanks to survive.  'But there's an extra £15billion for arms manufacturers. Stop funding war. Instead, change society for the better.'  Labour MP Rachel Maskell told the Independent: 'Ensuring financial security for disabled people and people who are on poverty pay must remain the principle of our social security system, and while it is right that Labour does everything possible to help people into work to cut the demands on the DWP, cuts will simply displace the expenditure.  'Instead, we need to look at companies with excessive profits, including in the defence industry, to ensure national and individual security; redistribution is vital if we are going to see a fairer and safer country.' Fielding questions for the Government in broadcast studios this morning, skills minister Baroness Jacqui Smith dodged on whether welfare should be cut. 'I think it's quite possible to both invest in our military and to make sure that we shift our welfare budget to get people back into work rather than to keep them out of work,' she said. Pressed if that meant benefits should not be cut, she told Times Radio: 'Well, I think... what we want to do is to do better than the last government who managed to both cut defence spending and increase the welfare budget...' She added: 'I definitely want to increase the defence budget, but we are already in the process of carrying out welfare reform.  'We're already making sure that young people are not being left without the ability to earn or learn, but are getting back into work.' Chancellor Rachel Reeves - who is expected to lose her job when Mr Burnham enters No10 - cautioned against more borrowing to pay for the DIP. Mr Burnham's allies have accused the outgoing PM (pictured) of leaving an 'unexploded bomb' for his successor Writing in the Telegraph, she said: 'A Britain spending beyond its means is a weak Britain – one that is more vulnerable to global shocks like the ones caused by Russia's invasion of Ukraine and more recently the war in Iran.' Chief of the Defence Staff Sir Richard Knighton told reporters that the DIP was only the start, and spending must rise quickly. 'I have been clear and I am on the record as saying that to deliver the strategic defence review and our Nato requirements, we need to spend 3.5 per cent of GDP,' he said.  'The Prime Minister alongside other leaders committed at the Hague at Nato last year to do that.' The comments below have not been moderated. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? 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