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The government has been accused of “spin and tinkering” over an announcement about an increase in defence spending which falls far short of what is needed, Sky News understands.

An entire fleet of military helicopters – the Royal Air Force’s Puma aircraft – was retired this week as part of a cost-saving plan to scrap older kit that was announced in November.

The sight of old but still airworthy helicopters being taken out of service before a replacement is ready – creating a capability gap – contrasts with statements by Rachel Reeves, the chancellor, and John Healey, the defence secretary, about boosting the defence budget.

The Puma aircraft's last flight. Pic: UK MOD
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The Puma aircraft’s last flight. Pic: UK MOD

Sir Ben Wallace, the longest-serving Conservative defence secretary, said he had expected better given the urgent need to rearm at a time of heightened threats and following Donald Trump’s warnings to Europe to stop relying on the United States to bankroll its security.

“We are at the dawn of a new era of insecurity across the world,” Sir Ben said.

“The US has warned us for a decade about not taking them for granted, and we all did nothing. In Germany, Poland, and France the penny has dropped and they have embraced a necessary culture change and re-prioritisation of government spend.

“In the UK, the government still thinks it is about spin and tinkering. It fools no one, and we risk losing our credibility and leadership on defence amongst allies.”

Sir Ben Wallace. Pic: Reuters
Image:
Sir Ben Wallace. Pic: Reuters

In her spring statement on Wednesday, the chancellor announced an extra £2.2bn for defence this coming financial year.

Ms Reeves told MPs it was a further “down payment” on a promise by the prime minister to lift expenditure on defence to 2.5% of GDP from April 2027. Defence spending is currently around 2.3% of gross national income. The new money will help inch it up to 2.36%.

The chancellor, defence secretary and prime minister have repeatedly phrased their plan to inject cash into the armed forces over this parliament as “the biggest sustained increase in defence spending since the end of the Cold War”.

But defence insiders say, while any new money is welcome, this claim is more spin than substance because the defence budget largely suffered repeated cuts since the Soviet Union collapsed.

Chancellor Rachel Reeves. Pic: PA
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Chancellor Rachel Reeves announced an additional £2.2bn in defence spending in her spring statement. Pic: PA

Also, focusing on a slogan does not answer the question of whether an extra £2bn over the next 12 months is enough to transform the British Army, Royal Navy and Royal Air Force at the speed that is necessary, they said.

Asked whether it was sufficient, multiple military sources and a defence industry source collectively said “no”.

“This is just another sticking plaster that overlooks decades of underinvestment and chronic financial mismanagement of our armed forces,” the defence industry source said.

“Increasing spending or a focus on ‘novel technologies’ ignores the fact that we have let a broken system flourish.

“Time and time again, we see celebration over procuring outdated solutions while their manufacturers get away with significant delays or overspends with seemingly few repercussions.

“While we continue to spin and fight over tiny percentages of spending, we are allowing our armed forces to get hollowed out in front of us, hoping that government soundbites will provide the deterrence that our current equipment can’t.”

Defence Secretary John Healey on a nuclear submarine on 17 March . Pic: Crown copyright 2025
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Defence Secretary John Healey on a nuclear submarine on 17 March. Pic: Crown copyright 2025

A military source said the additional £2.2bn for the year to March 2026 was a step in the right direction, but said it would merely keep defence on “life support”.

The situation only starts to improve marginally in two years’ time when the defence budget is finally forecast to hit 2.5% of GDP, the source said.

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This is despite the UK being a leading member of the “coalition of the willing”, with Sir Keir Starmer pledging to deploy forces to secure any ceasefire deal in Ukraine – a move that would put huge additional strain on his already stretched armed forces.

PM Sir Keir Starmer and Defence Secretary John Healey on a nuclear submarine. Pic: Crown Copyright 2025
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PM Sir Keir Starmer and Defence Secretary John Healey on a nuclear submarine. Pic: Crown Copyright 2025

While the UK talks about 2.5% for the defence budget, Mark Rutte, the secretary general of NATO, says allies must spend more than 3%, while Mr Trump wants them to aim for 5%.

In 2020, Boris Johnson, as the prime minister, said a plan to increase the defence budget by £16bn over four years, on top of a commitment to lift defence spending by 0.5% above inflation for each year of the parliament – so what was described at the time as an additional £24bn in total – was the biggest boost to defence expenditure since the Cold War.

Sir Keir has added the word “sustained” when describing the size of his defence spending boost – though that will depend upon the accuracy of forecasts that GDP will expand at the rate predicted in the coming years.

Sir Ben said: “The UK is facing some of the highest threats in a generation, yet John Healey thinks spin is the appropriate response. He fools no one – not the men and women of the armed forces and not our enemies. I had expected better of him.”

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Prince Harry cleared of bullying claims by report into ‘damaging dispute’ at his charity

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Prince Harry cleared of bullying claims by report into 'damaging dispute' at his charity

The Charity Commission has found no evidence of bullying or harassment at a charity set up by Prince Harry.

But it has found that an internal dispute at Sentebale “severely impacted the charity’s reputation”.

Earlier this year its chair, Dr Sophie Chandauka, accused the Duke of Sussex of “harassment and bullying at scale”.

Her comments followed the departure of the prince and several others from the organisation in March.

They had asked her to step down, alleging it was in the “best interest of the charity”.

Dr Chandauka told Sky News that Harry had “authorised the release of a damaging piece of news to the outside world” without informing her or Sentebale directors.

The Duke and Duchess of Sussex declined to offer any formal response.

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Why was Prince Harry accused of ‘bullying’?

‘Strong perception of ill-treatment’

The Charity Commission said it was reporting after a “damaging internal dispute emerged” and has “criticised all parties to the dispute for allowing it to play out publicly”.

That “severely impacted the charity’s reputation and risked undermining public trust in charities more generally”, it said.

But it found no evidence of “widespread or systemic bullying or harassment, including misogyny or misogynoir at the charity”.

Nevertheless, it did acknowledge the “strong perception of ill-treatment felt by a number of parties to the dispute and the impact this may have had on them personally”.

It also found no evidence of “‘over-reach’ by either the chair or the Duke of Sussex as patron”.

‘Confusion exacerbated tensions’

But it was critical of the charity’s “lack of clarity in delegations to the chair which allowed for misunderstandings to occur”.

And it has “identified a lack of clarity around role descriptions and internal policies as the primary cause for weaknesses in the charity’s management”.

That “confusion exacerbated tensions, which culminated in a dispute and multiple resignations of trustees and both founding patrons”.

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Why was Prince Harry accused of ‘bullying’?

Harry: Report falls troublingly short

A spokesperson for Prince Harry said it was “unsurprising” that the commission had announced “no findings of wrongdoing in relation to Sentebale’s co-founder and former patron, Prince Harry, Duke of Sussex”.

They added: “Despite all that, their report falls troublingly short in many regards, primarily the fact that the consequences of the current chair’s actions will not be borne by her, but by the children who rely on Sentebale’s support.”

They said the prince will “now focus on finding new ways to continue supporting the children of Lesotho and Botswana”.

Dr Chandauka said: “I appreciate the Charity Commission for its conclusions which confirm the governance concerns I raised privately in February 2025.”

But she added: “The unexpected adverse media campaign that was launched by those who resigned on 24 March 2025 has caused incalculable damage and offers a glimpse of the unacceptable behaviours displayed in private.”

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Police investigating grooming gangs given AI tools to speed up cold case work

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Police investigating grooming gangs given AI tools to speed up cold case work

All police forces investigating grooming gangs in England and Wales will be given access to new AI tools to help speed up their investigations.

The artificial intelligence tools are already thought to have saved officers in 13 forces more than £20m and 16,000 hours of investigation time.

The apps can translate large amounts of text in foreign languages from mobile phones seized by police, and analyse a mass of digital data to find patterns and relationships between suspects.

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Grooming gang inquiry: ‘Our chance for justice’

‘We must punish perpetrators’

The rollout is part of a £426,000 boost for the Tackling Organised Exploitation (TOEX) programme, which supports officers to investigate complex cases involving modern slavery, county lines and child sex abuse.

The increased access to the AI technology follows Baroness Casey’s recommendation for a national operation to review cold grooming gang cases.

That operation will review more than 1,200 closed cases of child sexual exploitation.

“The sexual exploitation of children by grooming gangs is one of the most horrific crimes, and we must punish perpetrators, provide justice for victims and survivors, and protect today’s children from harm,” said safeguarding minister Jess Phillips.

“Baroness Casey flagged the need to upgrade police information systems to improve investigations and safeguard children at risk. Today we are investing in these critical tools.”

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Key takeaways from the Casey review

Lack of ethnicity data ‘a major failing’

Police forces have also been instructed by the home secretary to collect ethnicity data, as recommended by Baroness Casey.

Her June report found the lack of data showing sex offenders’ ethnicity and nationality in grooming gangs was “a major failing over the last decade or more”.

She found that officials avoided the issue of ethnicity for fear of being called racist, but there were enough convictions of Asian men “to have warranted closer examination”.

The government has launched a national inquiry into the abuse and further details are expected to be announced in the coming weeks.

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Chancellor warned ‘substantial tax rises’ needed – as she faces ‘impossible trilemma’

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Chancellor warned 'substantial tax rises' needed - as she faces 'impossible trilemma'

Rachel Reeves will need to find more than £40bn of tax rises or spending cuts in the autumn budget to meet her fiscal rules, a leading research institute has warned.

The National Institute of Economic and Social Research (NIESR) said the government would miss its rule, which stipulates that day to day spending should be covered by tax receipts, by £41.2bn in the fiscal year 2029-30.

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In its latest UK economic outlook, NIESR said: “This shortfall significantly increases the pressure on the chancellor to introduce substantial tax rises in the upcoming autumn budget if she hopes to remain compliant with her fiscal rules.”

The deteriorating fiscal picture was blamed on poor economic growth, higher than expected borrowing and a reversal in welfare cuts that could have saved the government £6.25bn.

Together they have created an “impossible trilemma”, NIESR said, with the chancellor simultaneously bound to her fiscal rules, spending commitments, and manifesto pledges that oppose tax hikes.

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Could the rich be taxed to fill black hole?

Reeves told to consider replacing council tax

The institute urged the government to build a larger fiscal buffer through moderate but sustained tax rises.

“This will help allay bond market fears about fiscal sustainability, which may in turn reduce borrowing costs,” it said.

“It will also help to reduce policy uncertainty, which can hit both business and consumer confidence.”

It said that money could be raised by reforms to council tax bands or, in a more radical approach, by replacing the whole council tax system with a land value tax.

To reduce spending pressures, NIESR called for a greater focus on reducing economic inactivity, which could bring down welfare spending.

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What’s the deal with wealth taxes?

Growth to remain sluggish

The report was released against the backdrop of poor growth, with the chancellor struggling to ignite the economy after two months of declining GDP.

The institute is forecasting modest economic growth of 1.3% in 2025 and 1.2% in 2026. That means Britain will rank mid-table among the G7 group of advanced economies.

‘Things are not looking good’

However, inflation is likely to remain persistent, with the consumer price index (CPI) likely to hit 3.5% in 2025 and around 3% by mid-2026. NIESR blamed sustained wage growth and higher government spending.

It said the Bank of England would cut interest rates twice this year and again at the beginning of next year, taking the rate from 4.25% to 3.5%.

Persistent inflation is also weighing on living standards: the poorest 10% of UK households saw their living standards fall by 1.3% in 2024-25 compared to the previous year, NIESR said. They are now 10% worse off than they were before the pandemic.

Professor Stephen Millard, deputy director for macroeconomics at NIESR, said the government faced tough choices ahead: “With growth at only 1.3% and inflation above target, things are not looking good for the chancellor, who will need to either raise taxes or reduce spending or both in the October budget.”

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