The BBC and OBR claim that failing to cut disability benefits could ‘destabilise the economy’ while ignoring the spendthrift approach to tens of billions on military spending that really spirals out of control, argues DIANE ABBOTT MP
THE Labour leadership is adopting a scorched-earth policy to social programmes and public spending, with no section of society safe from their cuts. The consequences will be very grave for some of the poorest in society, for society as a whole and for the Labour Party.
In the first year of a Labour government, we have had cuts to the winter fuel allowance, a refusal to budge on the two-child benefit cap, cuts to sickness and disability benefits, and a tightening of departmental spending overall, which means cuts for some and a squeeze for the NHS.
This list is growing longer all the time. The latest target is the provision of special educational needs (SEN) spending in our schools, which ministers claim is spiralling out of control. There is also the beginning of a concerted PR campaign to abolish the “triple-lock” on the state pension, even though the meagre amount provided is one of the lowest in western Europe and insufficient for a decent retirement.
The main exception to this all-round austerity drive is military spending, which is really spiralling out of control. In fact, the pace of spending cuts elsewhere is designed to fill the real hole in government finances caused by the commitment to raise military spending to 5 per cent of GDP, a promise given to placate Donald Trump by Keir Starmer at the Nato summit.
Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.Keir Starmer says that the Labour Party under his leadership all feel a small part of Scunthorpe.
Chancellor of the Exchequer Rachel Reeves meeting members of the military during a visit to Rheinmetall BAE Systems Land (RBSL) in Telford, Shropshire, for an announcement on defence funding, March 24, 2025
While promising massive housebuilding with ‘no fiscal cost,’ DIANE ABBOTT MP reveals the government relies on planning reforms alone rather than public investment, as military expansion becomes the only significant investment
IN POLITICS, one should never over-promise and then under-deliver. At the same time, overall policy should be grounded in something more than wishful thinking. It is highly regrettable that the Chancellor made both these errors in delivering her Spring Statement.
Before the statement, all the talk was of enormous sums that would become available for desperately needed investment. At the same time, there was a strong campaign to refute any idea that the government was pursuing yet another round in the failed austerity experiment of its predecessors.
In the event, both were untrue. The actual new investment is extremely small and is mostly directed towards military and security investment, which is a completely wasteful and dangerous diversion of resources. A somewhat larger sum is planned to be “saved” by yet further attacks on welfare.
In effect, more spending on the military is being paid for by more attacks on the vulnerable, the sick and disabled people.
The Treasury has itemised the sums which illustrate these dangerously wrong priorities. By 2029-30, they project that the annual total of capital investment will have increased by £4.6 billion. But most of this does not properly fall into the category of investment at all, because it is military spending. You cannot produce something else from bombs, bullets and missiles.
Once military and security funding are excluded, real new productive investment amounts to less than £1.9bn at the end of this parliament. It does not qualify as investment. In terms of impact on the economy or living standards, it is a trivial amount.
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Military spending is the only significant area of government spending which is seeing any significant rise in government capital spending. It aligns with Trump’s policy and begins to meet his demands. But we know that he will come back for more. There is already talk of doubling military spending as a proportion of GDP to 5 per cent.
Now, and in the future, that can only come from cutting spending elsewhere. Of course, if the economy were booming, then increases in welfare, in spending on public services, in genuine public investment and even increases in military spending could all take place simultaneously. But no-one is suggesting a boom is likely or even possible.
In reality, the rise in military spending is only possible by restraining spending on public services and cutting welfare. This increased military budget is being paid for by sick and disabled people. The economy will not get the public investment it needs and living standards and public services will both remain constrained. These choices are morally, politically and economically wrong.
Diane Abbott is Labour MP for Hackney North and Stoke Newington.
Keir Starmer says that the Labour Party under his leadership all feel a small part of Scunthorpe.Keir Starmer confirms that he’s proud to be a red Tory continuing austerity and targeting poor and disabled scum.
Chancellor of the Exchequer Rachel Reeves attending the Make UK Conference at the QEII Centre in London, March 4, 2025
UNIONS, MPs and campaigners reacted with fury after the Treasury backed plans to slash billions from welfare spending in an “outrageous attack” on the poorest.
Chancellor Rachel Reeves was today urged to tax the rich instead after government sources said the cuts were necessary as the “world has changed” since her autumn budget.
The furore was sparked after an early draft of Budget watchdog the Office for Budget Responsibility’s (OBR) forecast was leaked to the BBC.
It suggests that the £9.9 billion of headroom it said she had against her self-imposed fiscal rules in October have been wiped out by lower expected economic growth and higher government borrowing costs.
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Prime Sir Keir Starmer last week announced a £6bn a year rise to military spending, to 2.5 per cent of GDP by 2027.
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National secretary of the People’s Assembly Ben Sellers said that Sir Keir Starmer and Ms Reeves are not interested in the alternatives to targeting the disabled and most vulnerable as they “are wedded to a pernicious and militaristic neoliberalism which is failing all over the world.”
And a Momentum spokeswoman said: “The Labour government’s decision to prioritise military spending whilst cutting welfare budgets will bring further austerity to Britain.”
SNP Westminster leader Stephen Flynn MP accused Labour of “a total betrayal of what voters were told at the election.”
Keir Starmer, Angela Rayner and Rachel Reeves wear the uniform of the rich and powerful. They have all had clothes bought for them by multi-millionaire Labour donor Lord Alli. CORRECTION: It appears that Rachel Reeves clothing was provided by Juliet Rosenfeld.Keir Starmer says pensioners can freeze to death and poor children can starve and be condemned to failure and misery all their lives.
As we speak, 4.3 million children in the UK are living in relative poverty. Over 350,000 people are homeless in England.
Millions are worried about the cost of heating their home, braced for yet another hike in energy bills. Meanwhile, billionaires are richer than ever.
So what is the government doing?
They could lift children out of poverty, if they wanted to, by scrapping the two-child benefit cap.
Keir Starmer says that a changing world means we have to increase defence spending (Picture: Ministry of Defence)
They could help pensioners with energy bills, if they wanted to, by restoring universal winter fuel allowance.
They could ensure nobody had to sleep rough on the streets, if they wanted to, by launching a massive council-house-building programme.
Instead, they have signed off on a 13.4 billion increase in military spending. With that money, the government could scrap the two-child benefit cap 10 times over.
Now, today, we’re told the government is preparing to cut billions from welfare budgets.
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Even David Lammy admits Gaza is in ‘rubble’ (Picture: Getty Images)
Put simply: there is never any money for the poor, but always enough money for war. I just wish the government was honest about that.
Keir Starmer says pensioners can freeze to death and poor children can starve and be condemned to failure and misery all their lives.Keir Starmer justifies why he has to travel abroad so much
NATO Secretary General Mark Rutte meets with US Vice President JD Vance. Source: NATO/Flickr
Statements by US Vice President Vance and Defense Secretary Hegseth on the Ukraine war and transatlantic relations have left European leaders in shock
“If American democracy can survive ten years of Greta Thunberg’s scolding, you guys can survive a few months of Elon Musk,” US Vice President JD Vance told European leaders at last week’s Munich Security Conference. His remarks came during a draining week for those leaders, as Trump officials announced peace talks with Russian authorities—without European or Ukrainian involvement—while signaling they expect Europe to handle peacekeeping and being paid for their support in minerals from Ukraine.
Speeches by Vance and Defense Secretary Pete Hegseth threw European leaders into disarray, seen as not-so-subtle indications of a cooling in transatlantic relations. These interventions attacked everything from the EU’s efforts to regulate social media platforms to its approach to far-right parties in parliamentary life. In response, French President Emmanuel Macron called for an emergency summit of select regional powers on Monday, February 17 – just a day before US and Russian representatives are expected to meet in Saudi Arabia.
While Ukrainian officials and some European leaders have insisted they will not accept any deal that excludes Ukraine’s direct involvement, their stance appears to carry little weight.
At the same time, the new US administration has increased pressure on its European allies, demanding a ramping up of their defense budgets and taking on the responsibility of a potential peacekeeping mission in Ukraine. This comes as no surprise: a number of US officials, including Donald Trump himself, have said Europe does not contribute enough to NATO and essentially freeloads off the US. Vance’s speech in Munich only reaffirmed this stance, ultimately reducing high-ranking figures to tears over the apparent breakup between allies.
While the focus of European reactions to recent US statements has been on Ukraine, many leaders have admitted that more is at stake. “Yes, it is about Ukraine – but it is also about us,” European Commission President Ursula von der Leyen wrote on X. Unfortunately, the conclusion she drew going further is upsetting: “We need an urgency mindset. We need a surge in defense. And we need both of them now.”
Unlike healthcare, education, or social programs—sectors where European governments are consistently told their budgets must remain limited—military spending is expected to face no such barriers. Many European countries have already embraced the shift, with Polish officials, for example, boasting about spending close to 5% of their GDP on defense and warning of looming “wider wars” to convince other states in the region to do the same.
Despite the apparent fracture in US-Europe relations, European leaders have shown no inclination to rethink their dependence on Washington. Instead, most have done exactly what the Trump presidency wants them to do and swiftly pledged to increase military spending. Some have even already expressed willingness to deploy troops for peacekeeping in Ukraine. What remains absent from their reactions is any consideration of a future less dictated by US interests and more aligned with the needs of the people living in Europe.
Since the beginning of the war three years ago, activists have urged Europe to reject NATO’s warmongering and prioritize peace in Ukraine alongside social justice at home. Instead, the coming surge in military budgets will almost certainly coincide with cuts to public services, further fueling the rise of the far-right—a political force that Trump officials, including Vance and Elon Musk, have (more or less) openly backed during interventions in Europe. From this perspective, unlike the conservative circles who “survived ten years of ’s scolding,” Europe’s liberal elite is unlikely to emerge from its current crisis unscathed. Whether their refusal to acknowledge the failure of their anti-people policies will push the entire region into the hands of parties like Brothers of Italy and Alternative for Germany remains to be seen.
Elon Musk urges you to be a Fascist like him, says that you can ignore facts and reality then.Power-mad orange gasbag Donald Trump says Burn, Baby, Burn.
Chancellor of the Exchequer Rachel Reeves meeting members of the military during a visit to Rheinmetall BAE Systems Land (RBSL) in Telford, Shropshire, for an announcement on defence funding, March 24, 2025
