Starmer ambushed with tax raid bombshell as PM faces crunch revolt over foreign aid cut

Keir Starmer confirms cuts to foreign aid to bolster defence spending
GB NEWS
Jack Walters

By Jack Walters


Published: 04/03/2025

- 15:26

Updated: 04/03/2025

- 16:13

The Prime Minister suffered a shock resignation from his longtime ally Anneliese Dodds last week

Sir Keir Starmer has been ambushed with a tax raid bombshell over his decision to slash foreign aid to bankroll a surge in defence spending.

In a letter circulated by MPs, backbench Labour MPs called on the Prime Minister to cancel the overseas development cut and place the burden on Britain's wealthiest.


The note, which is expected to be delivered just before Prime Minister's Questions on Wednesday, said: “No Government should balance its books on the back of the world’s most marginalised people.

“This is a political decision, not an economic necessity – and sources of financing are available which punish neither British voters nor the world’s poor.”

Sir Keir Starmer hopes to plug his defence surge with a cut to foreign aid

Sir Keir Starmer hopes to plug his defence surge with a cut to foreign aid

PA

Alloa & Grangemouth MP Brian Leishman, who reportedly organised the letter, added: “Whilst it might seem like cutting the aid budget is more politically palatable than other cuts, the British public are generous and open minded.

“We feel confident they would rather see money taken from billionaires rather than taken away from children in Sudan.”

A growing number of Labour MPs have voiced their disappointment with the decision to sacrifice foreign aid to fund defence spending, including ex-International Development Minister Anneliese Dodds.

Dodds, who resigned from Starmer's Government last Friday, accused the Prime Minister of mirroring Donald Trump's cuts in Washington.

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Anneliese Dodds

Anneliese Dodds

PA

Ex-Shadow Home Secretary Diane Abbott also described the decision as "shameful", with former Shadow Defence Secretary Clive Lewis labelling Dodds's resignation a "big straw".

Responding to Dodds's resignation letter, the Prime Minister said: "The decision I have taken on the impact on ODA was a difficult and painful decision and not one I take lightly."

Moderate rebels have also been pushing for the Prime Minister to delay the cut until 2026, The Sun has claimed.

The centrist cabal believe the delay would enable charities to adjust their plans ahead of the 0.5 per cent budget being cut to 0.3 per cent.

Prime Minister Sir Keir Starmer speaks to soldiers at the RAF base in Akrotiri, Cyprus

Prime Minister Sir Keir Starmer speaks to soldiers at the RAF base in Akrotiri, Cyprus

PA

Foreign Secretary David Lammy and Defence Secretary John Healey will meet with MPs this week to cool tensions and quell any potential rebellion.

Starmer had received the plaudits of top Tories and Reform UK MPs following last week's defence spending announcement.

The Prime Minister plans to boost defence spending by £13.4billion in an accelerated 2.5 per cent security splurge.

The decision would take the overall haul from around £53.9billion to £67.3billion.

A stock image of members of the Armed Forces

A stock image of members of the Armed Forces

GETTY

The Government allocated £13.3billion in aid spending in 2024/25, with last week's announcement likely slashing the sum to just shy of £8billion.

Starmer admitted "touch choices" needed to be made to plug any gaps in his defence spending commitment.

Following Tuesday's announcement, the Institute for Fiscal Studies suggested that a cut to foreign aid would not be enough to cover the costs if the Government pushes ahead with its plans to boost defence spending to three per cent of GDP.

The Prime Minister last week refused to rule out hiking taxes in this month's spring statement, instead saying: "I am not going to say in advance what we might do and what we might not do."