Plaid Cymru calls on Starmer to revisit fiscal rules to allow for increase in defence spending

Plaid Cymru has urged the Prime Minister to ensure that neither international aid nor public services suffer as a result of the proposed increase in defence spending.

Speaking in the House of Commons, the party’s Westminster leader, Liz Saville Roberts MP, called for Sir Keir Starmer to reconsider the UK Government’s self-imposed fiscal rules to allow responsible investment across defence, humanitarian commitments, and public services.

Ms Saville Roberts said that increasing the defence budget “shouldn’t be at the expense of international aid or public services starved of resources”.

Her comments followed the Prime Minister’s Statement on Ukraine, in which he outlined a four-point plan to support peace in Europe, including a commitment to strengthening Ukrainian defences.

Over the weekend, Sir Keir met with President Volodymyr Zelensky, reaffirming their shared commitment to achieving a “strong, just, and lasting peace for Ukraine.”

The UK Government has announced that an increase to its defence spending would be financed through cuts to its foreign aid budget.

‘Bolder vision’

However, Ms Saville Roberts said that it is time for a “bolder vision” by instead allowing more investment, which would require revisiting the Government’s self-imposed fiscal rules, which set strict limits on how much the government can borrow to spend and invest.

Speaking in the House of Commons, she said: “Working together with our European partners is essential for security, stability, and peace. Plaid Cymru commends diplomatic initiatives over the weekend.

“Boosting defence spending shouldn’t be at the expense of international aid or public services starved of resources. The Prime Minister talks of Tory fiscal failures, but protecting peace now calls for a bolder vision.

“Under what circumstances would he commit to look again at the fiscal rules to ensure that the UK can responsibly invest in defence, humanitarian commitments and public services?”

In response, the Prime Minister said: “I do understand her concern, as I explained to the House last week that this was not a decision I wanted to take but the defence and security of Europe required us to take this decision on defence.

“On the fiscal rules, I do think economic stability is vitally important. If we lose that we will lose far more than our budgets. I will work across the House on whatever ways we can to increase development aid notwithstanding the budgetary constraints and that’s why I spoke to the president of the World Bank on Friday to have that very discussion.

“I think there are discussions to be had with other countries, with other institutions and actually innovation and discussion across the House I think would be a valuable part of that exercise because the principle behind the question is the right one which is that we must support international development and aid.”

Sir Keir also faced pressure from his own MPs over his decision to cut the overseas aid budget to fund an increase in defence spending.

More deaths

Labour former minister Barry Gardiner argued the cuts will lead to more deaths as he also urged the Prime Minister to pay for the rise in defence spending by changing the fiscal rules instead.

Meanwhile, Dame Emily Thornberry, who chairs the Foreign Affairs Committee, said it is “hard to believe” there will be enough money left in the budget to support areas such as Ukraine, Sudan and Gaza.

Mr Gardiner, MP for Brent West, said: “The Prime Minister deserves plaudits for the skilful way in which he has handled his visit to Washington last week, as he does for the resolve that he’s shown to stand against Russia’s illegal invasion of the sovereign state of Ukraine.

“Surely, though, this was a moment to accept that the post-war international settlement has now been fractured and that the necessary rise in defence spending should be achieved by changing the fiscal rules, not by cuts to international aid, which will only see more people slain by famine, drought, disaster and war.”

Sir Keir replied: “The reason that we will not change the fiscal rules is that we need economic stability. We experienced economic instability only a few years ago under Liz Truss.

“The loss to our aid budget, and all budgets, would be far more profound if we go back to instability, and I’m not prepared to do it.”

Prioritise support

Dame Emily, Labour MP for Islington South and Finsbury, questioned how the UK would prioritise support to Ukraine, Sudan and Gaza following the proposed move to cut aid spending.

She said: “The difficulty is that after refugee costs, admin costs, the department’s commitments to things like the World Bank and UN are taken into account, it is hard to believe that there will be enough left in the budget to provide meaningful humanitarian support in these priority areas.

“So, does the Prime Minister understand the concern of so many that these cuts could, in fact, in the long-term hobble the very leadership that the Prime Minister has shown this weekend and that he has finally given the world some hope?”

Sir Keir defended the defence spending increase, adding on overseas aid: “I am committed to it. What we will now do is go through line-by-line the funding and look at our priorities.

“Of course, Ukraine, Sudan, Gaza, are right up there in our priorities but I also want to work with others and across the House, if we can, at other ways of raising money and finance for development and aid overseas.”