Rows over defence investment plan ‘have badly harmed cabinet relations’

Sources say much delayed Dip is close to sign-off but only after some of the Labour government’s worst infighting

Cabinet relations have been left badly damaged by the protracted row over the defence investment plan (Dip), according to Whitehall sources who say the standoff has led to some of the worst infighting since Labour took power.

Ministers are putting the final touches on the plan, which is expected to be published in the coming weeks after departments agreed to cut their capital budgets by about 1% to pay for additional military spending.

Allies say Keir Starmer wants the plan to form part of his legacy should he be replaced as prime minister by the Greater Manchester mayor, Andy Burnham, in the coming weeks.

But the months-long dispute between the Ministry of Defence , the Treasury and No 10 has left senior members of the government trading accusations about each other, insiders say.

“The whole process has been a mess,” said one Whitehall official. “First the Ministry of Defence told everyone their plans were fully costed and didn’t need extra cash.

“They infuriated people by then coming back and asking for billions more, but then the Treasury absolutely refused to budge, dragging this out for much longer than they should have.”

Starmer’s spokesperson said on Monday: “The prime minister is determined to get the Dip right to ensure we deliver the best equipment and technology into the hands of our frontline forces, whilst investing in and growing the UK economy.”