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Rishi Sunak has insisted his uplift in defence spending is “fully funded” after Labour branded the announcement a pre-election “gimmick”.

The prime minister was asked by journalists whether he was not “entirely squaring with people” over how the increase in defence spending by 2030 will be funded – and whether it would involve “pain” for taxpayers.

But Mr Sunak, appearing at a joint press conference with German Chancellor Olaf Scholz, said that was not a “fair characterisation” and that his pledge was “fully funded”.

Mr Sunak confirmed yesterday that the UK’s defence spending would increase to 2.5% of GDP by 2030 to meet the “growing threats” posed by the likes of Russia, China and Iran.

Politics latest: Angela Rayner labels Rishi Sunak a ‘pint-sized loser’

The government has said the commitment amounted to an additional £75bn in funding over the next six years.

Labour has outlined a desire to match the pledge but some shadow ministers have struck a more cautious tone than others.

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Speaking today in Berlin, the prime minister said Chancellor Jeremy Hunt had conducted a “detailed exercise” that “gives us the confidence that we can release the savings needed”.

“We are making a choice to prioritise defence with both of those decisions and I believe that’s the right thing to do,” he said.

“Because whether we like it or not, the world is more dangerous now than at any moment since the Cold War and it falls on leaders – whether that’s Olaf, whether that’s me – to do what’s necessary to keep our continent safe and stand up for our values.”

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Is 2.5% of GDP enough?

Mr Sunak confirmed the reduction in civil service headcount to pre-pandemic levels would partly fund the spending uplift.

The move, which would see around 70,000 job cuts, has been criticised by the PCS union, which accused the government of using civil servants as a “scapegoat”.

“It’s not right for our members to pay for a rise in defence spending with their jobs, so we’ll fight these proposals tooth and nail, just as we fought them under Boris Johnson,” it said, adding: “Cuts have consequences.”

But Mr Sunak defended the plan, saying that since 2019 “we’ve seen a very significant rise that isn’t sustainable or needed”.

While the prime minister spoke at the press conference, his defence secretary informed MPs of the spending change in the Commons.

Earlier, Grant Shapps told Sky News NATO’s defence spending target should rise to 2.5% of GDP, arguing it would make a “real difference” and inject £135bn a year into the alliance’s budget.

Asked whether he agreed that the target should rise, Mr Sunak declined to answer – but he did say the UK needed to adjust to a “new paradigm”.

“It’s clear that the world that we’re living in is increasingly dangerous…. And I think it’s right that in light of that we recognise that we need to do more,” he said.

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Labour to ‘match’ PM’s defence pledge

Earlier today Emily Thornberry, Labour’s shadow attorney general, told Sky News her party wanted to “move towards” the government’s 2.5% spending pledge – but it would not commit to the 2030 target “unless there’s a plan that makes sense”.

“When circumstances allow… we want to move towards 2.5%,” she told Kay Burley.

Read more:
Sunak’s defence pledge sets trap for Starmer
‘Confusion reigns’ despite Sunak’s shift in tone on defence spending

But she added: “You wouldn’t expect me to come on and say that we could spend £75bn by 2030 without having a plan as to where we were going to get the money from.”

And she said the government’s document on defence spending did not contain a “single word about how they were going to pay for it”, calling it a “gimmick”.

Her comments appear to row back on claims made by Steve Reed, Labour’s shadow environment secretary, who told Politics Hub with Sophy Ridge yesterday that his party was aiming to match the current government’s figure by the end of the decade.

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Tulip Siddiq boasted of links with ousted Bangladeshi Prime Minister Sheikh Hasina

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Tulip Siddiq boasted of links with ousted Bangladeshi Prime Minister Sheikh Hasina

Tulip Siddiq has sought to distance herself from her aunt, deposed Bangladeshi PM Sheikh Hasina, claiming they never spoke about politics.

But Sky News can reveal that in a blog written by the now City minister she boasted about how close they were politically and published photos of them together.

In posts written in late 2008 and early 2009, when she was a Labour activist, Ms Siddiq described campaigning with her aunt in Bangladesh’s general election and celebrating her victory.

Our disclosure coincides with a new report in The Times which reveals how the embattled MP’s Labour Party flyers were found in the palace in Dhaka that belonged to her aunt, who was ousted in a coup last year.

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Labour’s Tulip Siddiq risks losing job

The blog is headed: “Tulip Siddiq, member of the Labour Party action team in Bloomsbury and King’s Cross”, and in a post on January 11, 2009, Ms Siddiq told supporters: “I was really busy in Bangladesh as you probably gathered…

“I’ve put up photos of Sheikh Hasina’s post-election press conference at Bangladesh-China Friendship Conference Centre in Dhaka.

“The most significant element of this press conference for me was Sheikh Hasina’s insistence that all the political parties in Bangladesh need to work together for the welfare of the country.

“It is no secret that past governments have not worked with the other political parties and we need to change this trend.

“The prime minister emphasised that the Awami League does not support the ‘politics of vengeance’ which is encouraging so let’s hope that a new political culture is created this year.”

She added: “Here’s an action shot of me with the prime minister at the press conference. I’m not sure what I was saying but it probably wasn’t that interesting!”

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‘Tulip Siddiq will lose job if she broke rules’

In a post on January 21, 2009, she wrote: “I was fortunate enough to travel with Sheikh Hasina in her car during election day.

“The prime minister-elect (Prime Ministerial candidate at the time!) drove to several constituencies in Dhaka and stopped quickly at each one to meet the parliamentary candidate or speak to the voters.”

Describing traveling in her aunt’s car, she wrote: “You can see all my photos from election day here… I apologise for the poor quality of some of the pictures. I was taking photos from inside her car which is actually quite difficult!”

“You’ll also see a photo of Dhaka Central Jail. I took that photo because Sheikh Hasina told me that this jail was practically her second home for most of her childhood as her father, Bangabandhu Sheikh Mujibur Rahman, was under arrest for many years.

“She told me that she visited him with the rest of her family every weekend, so it was a very familiar landmark.”

Earlier, on December 29, 2008, under the heading “Victory!”, Ms Siddiq wrote: “The Awami League have won the elections by a landslide! Sheikh Hasina is the prime minister-elect! I am ecstatic!

“I’ve been on the campaign trail with Sheikh Hasina all day so I don’t really have the energy to write much more but I will do so tomorrow.

“However, I can’t resist uploading a couple of photos. This is Sheikh Hasina’s face just before she heard the results from an unwinnable constituency.

“Here she is after she heard that the Awami League hard work had paid off in that seat.”

The Times reports that political literature of Ms Siddiq, Sir Keir Starmer’s anti-corruption minister, was found at the heavily guarded palace in Dhaka, covered by dust and debris.

At the top of a staircase were items produced by Ms Sidddiq. One was a thank you note to local Labour Party members following her election as MP for Hampstead and Kilburn.

Read more:
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Another was her annual report for 2022, inviting readers to learn about her help for those affected by the cost-of-living crisis.

The new disclosures will pile further pressure on Ms Siddiq and lead to further calls on the prime minister to sack her.

Many Labour MPs believe her ministerial career is now hanging by a thread.

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On Sky News earlier, cabinet minister Peter Kyle told Trevor Phillips Ms Siddiq was right to submit herself to an ethics investigation over corruption allegations and strongly hinted she would be sacked if found to have broken the ministerial code.

Asked whether she should stand down until she is cleared of impropriety, Mr Kyle said: “I think she’s done exactly the right thing. She’s referred herself that the inquiry needs to go through. I think that that’s the appropriate way forward.

“I’m giving it all the space it needs to do. I’ll be listening for the outcome as the Prime Minister will be.

“There was a process underway and we know full well it will be a functional process, and the outcomes of it will be stuck to by the prime minister and this government, a complete contrast to what we’ve had in the past.”

Sky News has approached Ms Siddiq and the Labour Party for comment.

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Even if Tulip Siddiq resigns, the damage may already be done to Sir Keir Starmer

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Even if Tulip Siddiq resigns, the damage may already be done to Sir Keir Starmer

There comes a point in the arc of most political scandals after which a resignation risks prompting more questions than it answers.

The danger for Tulip Siddiq – and by extension Sir Keir Starmer – is that threshold may about to be passed, if it hasn’t been already.

In other words, if she goes now, plenty will wonder why it didn’t happen sooner and why Downing Street allowed the story to gather pace and inflict further damage before acting.

The answer to this is partly because nothing has emerged so far that’s such an explicit rule break that it would trigger an automatic sacking or resignation.

That means the affair still resides – just about – in the box marked “looks bad” rather than the more sinister one marked “is bad”.

The standards adviser has been asked to “establish the facts” – a classic political technique to try and smother a story by announcing an inquiry.

Read more:
Siddiq refers herself to ethics watchdog
Minister caught up in anti-corruption probe

What are the allegations against Ms Siddiq?

The allegations centre on financial links between Tulip Siddiq and political allies of her aunt – the former prime minister of Bangladesh Sheikh Hasina.

Ms Siddiq currently rents a £2m house in north London owned by a businessman with reported links to Ms Hasina’s Awami League party.

She also owns a flat in central London that the Financial Times reports was gifted to her by an ally of her aunt.

And she was registered at another London property that was transferred to her sister in 2009 by a lawyer who has represented Ms Hasina’s government.

Cabinet minister Peter Kyle told Sky News the outcome of that exercise “will be stuck to”, meaning the junior Treasury minister will be relieved of her responsibilities if a breach of the government’s code of conduct is identified.

But some within Labour are contrasting this case with the rapid resignation of Louise Haigh as transport secretary after Sky News revealed she had pleaded guilty to an offence in court shortly before becoming an MP.

They suggest the key difference is that Ms Haigh was relatively left-wing and at odds with some in Downing Street, while Ms Siddiq is a constituency neighbour and ally of the prime minister.

“Keir Starmer has been consistently ruthless against people perceived to be more on the left of the party and very lenient with people perceived to be more on the right of the party,” said former Jeremy Corbyn adviser Andrew Fisher.

A counter to this is that Ms Siddiq is not a cabinet minister.

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Minister suggests Siddiq could lose job

That said, she does oversee efforts to combat financial crime, money laundering and corruption – three activities she is now finding herself linked to, albeit in a different country.

The fact she pulled out from the chancellor’s trip to China this weekend also opens an easy attack line that the story is already stopping her from doing her job.

So where does this go now?

There is a chance that something may emerge that forces an immediate departure.

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Engaging the standards adviser may also backfire if a technical breach potentially relating to declarations or conflicts of interest is found.

But a third option is potentially most damaging for the government – that Ms Siddiq becomes politically paralysed by the volume of stories surfacing and is forced to step down simply to stem the flow.

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UK to ‘mainline AI in the veins’ under new plans from Sir Keir Starmer

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UK to 'mainline AI in the veins' under new plans from Sir Keir Starmer

The government will “mainline AI into the veins” of the UK, with plans being unveiled today by Sir Keir Starmer.

The prime minister is set to promise investment, jobs and economic growth due to a boom in the sector.

It comes as his government battles against allegations they are mismanaging the economy and stymied growth with the budget last autumn.

The government’s announcement claims that, if AI is “fully embraced”, it could bring £47bn to the economy every year.

And it says that £14bn is set to be invested by the private sector, bringing around 13,000 jobs.

The majority of those would be construction roles to build new data centres and other infrastructure, with a smaller number of technical jobs once the work is finished.

Sir Keir said: “Artificial Intelligence will drive incredible change in our country. From teachers personalising lessons, to supporting small businesses with their record-keeping, to speeding up planning applications, it has the potential to transform the lives of working people.

More on Artificial Intelligence

“But the AI industry needs a government that is on their side, one that won’t sit back and let opportunities slip through its fingers. And in a world of fierce competition, we cannot stand by. We must move fast and take action to win the global race.”

The prime minister added that he wants Britain to be “the world leader” in AI.

The government announcement said: “Today’s plan mainlines AI into the veins of this enterprising nation.”

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To achieve this, the government will implement all 50 recommendations made by Matt Clifford following his review last year.

This includes creating new AI “growth zones” – the first of which is set to be in Culham, Oxfordshire, where the UK’s Atomic Energy Authority is based.

These zones will get faster planning decisions and extra power infrastructure.

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Is the AI boom turning into a market bubble?

The government also wants to increase UK computing power 20-fold by 2030, including by building a brand-new supercomputer.

Labour cancelled a planned supercomputer when it entered office, as it claimed it wasn’t funded. The new venture is expected to be a joint public-private project.

The government says its plans will have three pillars. This includes laying the foundations with new AI growth zones and the new supercomputer.

The second is to boost AI take up by the public and private sectors. New pilots for AI in the public service are set to be announced, and Sir Keir has written to all cabinet ministers, telling them to drive AI adoption and growth.

And the third pillar is keeping ahead of the pack, with the government set to establish a “team” to keep the UK “at the forefront of emerging technology”.

The announcement was welcomed by a slew of technology bosses.

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Chris Lehane, the chief global affairs officer at OpenAI, which released ChatGPT, said: “The government’s AI action plan – led by the prime minister and [Science] Secretary Peter Kyle – recognises where AI development is headed and sets the UK on the right path to benefit from its growth.

“The UK has an enormous national resource in the talent of its people, institutions and businesses which together, can leverage AI to advance the country’s national interest.”

The shadow secretary for science, innovation and technology, Alan Mak, said: “Labour’s plan will not support the UK to become a tech and science superpower. They’re delivering analogue government in a digital age.

“Shaping a successful AI future requires investment, but in the six months leading up to this plan, Labour cut £1.3bn in funding for Britain’s first next-generation supercomputer and AI research whilst imposing a national insurance jobs tax that will cost business in the digital sector £1.66bn.

“AI does have the potential to transform public services, but Labour’s economic mismanagement and uninspiring plan will mean Britain is left behind.”

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