Rachel Reeves has warned \u201cdifficult choices\u201d are required to increase defence spending and other budgets may have to be cut, including welfare.<\/p>\n
Under pressure for a faster rise in the military budget amid the Iran conflict and Russia\u2019s war in Ukraine, the chancellor said she was \u201cworking through a range of options\u201d but preferred not to increase taxes or add to government borrowing.<\/p>\n
She said: \u201cMy two budgets have both increased taxes substantially. I would prefer not to have to do that again. And on borrowing, well look, we\u2019ve seen through this conflict [in Iran] the cost of government borrowing increase.<\/p>\n
\u201cWe already spend \u00a31 in every \u00a310 on what the government spends on servicing the debt. If we increase that debt further we\u2019d only be increasing how much we would be spending.\u201d<\/p>\n
In comments suggesting readiness to face down her Labour colleagues<\/a>, Reeves said: \u201cI think people have seen that I\u2019m willing to make difficult choices and challenge the orthodoxy through what I did last year to realise more money for defence.\u201d<\/p>\n Speaking to journalists on the sidelines of the International Monetary Fund spring meetings in Washington, she said ministers were working through the government\u2019s 10-year defence investment plan and it was important to allocate funding appropriately.<\/p>\n While refusing to be drawn directly on whether welfare cuts would be targeted, Reeves said: \u201cNational security always comes first, I\u2019ll always do the right thing as chancellor for our country.\u201d<\/p>\n When asked if the pensions triple lock could be ditched, she said Labour remained committed to its manifesto promise to keep the policy. \u201cWe\u2019re not changing that,\u201d she added.<\/p>\n