Keir Starmer has suggested Andy Burnham borrow billions more to cover the hole in the government’s defence investment plan (Dip), in a move economists say would severely reduce the likely next prime minister’s headroom against his fiscal rules.
The prime minister said on Wednesday that his successor – who is very likely to be the Makerfield MP – should use the headroom to fund a £4.7bn gap in defence spending over the next four years.
