Reeves opens door to MORE tax rises to boost defence spending

By MARK NICOL, DEFENCE EDITOR and JOHN-PAUL FORD ROJAS, DEPUTY BUSINESS EDITOR Published: 00:30, 10 June 2026 | Updated: 00:30, 10 June 2026 Rachel Reeves yesterday hinted at more tax rises to fund a desperately needed boost in defence spending. The Chancellor has opened the door to painful hikes, saying 'the money's got to come from somewhere'. Infighting between ministers, including the Chancellor, has delayed the Government's long overdue blueprint for Armed Forces funding – the Defence Investment Plan (DIP). After delays condemned by service chiefs and defence manufacturers, the DIP was expected to be unveiled in the coming days. However, Downing Street yesterday suggested the wait may continue. The announcement, when it comes, will be accompanied by an increase in defence spending of around £15billion, bargained down from an initial £18billion by the Treasury. Ms Reeves told City executives yesterday that 'headroom' from a previous budget surplus should cover most of the extra spending, but not all. She said the cash would boost Britain's defence industry, but added: 'The money has to come from somewhere and borrowing cannot always be the answer.' However, her department came under fire from Lord Robertson, a former Labour minister and Nato secretary general, who said there was 'no doubt the Treasury has been holding back'. Appearing before a select committee yesterday, he said we 'need to move fast because we are vulnerable'. The Daily Mail's Don't Leave Britain Defenceless campaign has been pushing Labour to find more money for the Armed Forces and security of the nation. Rachel Reeves has hinted at more tax rises to fund a desperately needed boost in defence spending No comments have so far been submitted. Why not be the first to send us your thoughts, or debate this issue live on our message boards. By posting your comment you agree to our house rules. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual. Do you want to automatically post your MailOnline comments to your Facebook Timeline? Your comment will be posted to MailOnline as usual We will automatically post your comment and a link to the news story to your Facebook timeline at the same time it is posted on MailOnline. To do this we will link your MailOnline account with your Facebook account. We’ll ask you to confirm this for your first post to Facebook. You can choose on each post whether you would like it to be posted to Facebook. Your details from Facebook will be used to provide you with tailored content, marketing and ads in line with our Privacy Policy.