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UK Raises Taxes, Cuts Budgets to Fund £15bn Defence Plan

6/10/2026

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Summary

Story summary

The government will raise taxes and cut departmental capital budgets by 1% to fund defence.
Chancellor Rachel Reeves said the Defence Investment Plan, due before next month’s NATO summit in Ankara, will be funded by the tax rise, not borrowing.
The £15 billion package being negotiated is £13 billion below the £28 billion request, which led Lords West of Spithead and Lee of Trafford to call the Royal Navy’s condition a national embarrassment.

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Story summary

The government will raise taxes and cut departmental capital budgets by 1% to fund defence.
Chancellor Rachel Reeves said the Defence Investment Plan, due before next month’s NATO summit in Ankara, will be funded by the tax rise, not borrowing.
The £15 billion package being negotiated is £13 billion below the £28 billion request, which led Lords West of Spithead and Lee of Trafford to call the Royal Navy’s condition a national embarrassment.