Keir Starmer’s one move could ‘destroy our economy’, Kemi Badenoch warns

Kemi Badenoch takes aim at Starmer over defence figures (Image: Getty)

has warned Keir Starmer that the Government’s funding for its plan to use the overseas aid budget to increase defence spending raises “serious questions”.

Ministers have provided “totally inconsistent figures” for how it will pay for its defence spending increase, the Institute for Fiscal Studies (IFS) has said.

The Tory leader said: “Over weekend I wrote to the Prime Minister, letting him know he would have the support of my party to make difficult decisions.

“He must not raise taxes further as it will destroy our economy. We need a strong economy to pay for strong defence.

“He cannot borrow more – we are already spending on more on debt interest than defence. He must make his difficult decisions on spending.

“He has our support to do that. I also told him that he has our support to repurpose the aid budget at this time.

“In his statement, The Prime Minister told us about his new value for money Defence Reform and Efficiency Plan. Does he agree that the first thing that must be looked at is spending billions of taxpayer money leasing back a defence based on Diego Garcia that we currently own? Why is the Prime Minister still pursuing this deal?

“Earlier today, I made a speech about the realism that should drive our foreign policy. As part of this, the PM should scrap his disastrous plan to surrender the Chagos islands and have British taxpayers pay for the privilege.”

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The Prime Minister announced the dramatic increase in defence spending from its current 2.3% to 2.5% by 2027 in response to “tyrant” and amid uncertainty over the US’s commitment to European security.

It will be paid for by slashing development assistance aid from its current level of 0.5% of gross national income to 0.3% in the next two years.

Sir Keir insisted it was “not a decision I wanted to make” as he held a Downing Street press conference setting out the plans.

But Writing on X, formerly Twitter, the IFS think tank director Paul Johnson said: “Govt playing silly games with numbers. Extra £13.4billion for defence must be against counterfactual of no cash increase, not of constant % of GDP. While £5.3bn cut in aid compares 0.5% GDP to 0.3% GDP.

“That’s how a £5.3billion cut “pays for” £13.4billion increase. Totally inconsistent figures.”

Sir has defended his decision to increase defence spending after the coinciding cuts to aid were criticised by charities.

Asked about the concerns that aid organisations have raised about the aid cuts and whether the decision could affect the Government’s plans to cut irregular migration, the Prime Minister said: “The decision on aid and cutting aid is not a decision I wanted to make.

“It is important that I am clear that we will continue our support in areas such as Gaza, Sudan, of course. That’s the context in which we’ve made this decision.”

He later added: “There is no driver of migration and poverty like conflict. That is why ensuring that by taking strong action now to deter tyrants like Putin we have to take decisions we’ve made today.

“Not a decision I wanted to take, a decision that was necessary for the protection of our country.

“And the very people who are most vulnerable are those that would be hit hardest if there was conflict. And that is why today I’ve taken necessary steps to avoid conflict.”

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