Labour’s defence shambles deepened again today amid claims Ed Miliband is refusing to make Net Zero cuts to free up spending.
Keir Starmer is desperately trying to finalise the Defence Investment Plan, which has been the subject of months of bitter wrangling.
No10 had hoped the blueprint to fill a black hole in budgets could finally be unveiled this morning, ahead of the PM meeting fellow leaders at an international summit next week.
However, that prospect has humiliatingly been dashed as the Treasury and Cabinet ministers play hardball over how to find the funding.
The PM’s inability to get the measures over the line highlights his waning authority, with Andy Burnham widely expected to mount a challenge if he wins the Makerfield by-election next week.
Keir Starmer is desperately trying to finalise the Defence Investment Plan, which has been the subject of months of bitter wrangling
It is understood that Ed Miliband has been resisting demands for savings of at least 1 per cent within his Department for Energy Security and Net Zero
As well as a multi-billion pound shortfall in existing budgets, there are disagreements over how and when targets for increasing spending can be reached.
It is understood that Mr Miliband has been resisting demands for savings of at least 1 per cent within his Department for Energy Security and Net Zero.
That could amount to more than £600million from the capital budget over the five-year spending period – potentially affecting support for heat pumps and carbon capture.
One Whitehall source told the Telegraph: ‘While investing in sustainability is clearly important, it is also unsustainable to leave Britain’s wind farms vulnerable to Russian attack.’
Sir Keir’s allies have been increasingly suspicious of Mr Miliband, amid rumours of a tie-up with Mr Burnham. The Cabinet minister is said to have told the PM he should set a timetable for his departure.
During bad-tempered PMQs clashes yesterday, Sir Keir repeatedly refused to rule out more tax rises to fund a military boost.
And he would only commit to releasing the proposals before the Nato summit on July 7.
Ministers have ruled out unveiling the plan tomorrow, after Speaker Lindsay Hoyle said it would be a ‘kick in the face’ to do so when MPs are not sitting.
Sir Keir’s allies have been increasingly suspicious of Mr Miliband, amid rumours of a tie-up with Andy Burnham (pictured in Makerfield)
It is unclear whether publication can happen next week, as the PM has engagements outside of the UK.
The Government’s financial room for manoeuvre is limited after a revolt last year torpedoed efforts to curb spiralling sickness benefits.
It emerged last week that Work and Pensions Secretary Pat McFadden privately complained that Labour MPs only cared about who they can ‘tax in order to pay benefits to others’.
