Keir Starmer and Rachel Reeves congratulated each other on finally agreeing a defence plan today – even though it is far short of what the military said was needed.

The PM and Chancellor, who only have weeks left before Andy Burnham takes over, hailed a £15billion funding package at a launch in Maidenhead.

But there was no mention of former Defence Secretary John Healey, who quit earlier this month when No10 and the Treasury would not increase the boost from £13.5billion over the next four year. 

Sir Keir insisted the proposals were the ‘right choice for the country’ in a desperate speech talking up his legacy, but admitted they would mean some road and energy projects being scrapped.

In one awkward moment suggesting his mind is on the World Cup, Sir Keir called a question from from ‘Sky Sports’ instead of ‘Sky News’. 

Ms Reeves also delivered what amounted to a valedictory statement, referring to the little-understood ‘Secur-o-nomics’ conceit from her ‘two years as Chancellor’.

The pair appear to have put mounting tensions behind them as the end of their terms in office loom, with Ms Reeves introducing the premier as ‘my friend, our PM, Keir Starmer’.   

Sir Keir is still facing a bruising showdown with Donald Trump at the Nato summit next week.

Critics say the £15billion extra funding over the next four years is ‘too little too late’, and will include massaged figures and repackaged promises. 

There is also still no timetable for pushing defence spending to 3 per cent of GDP, let alone the 3.5 per cent the US President is demanding. 

Keir Starmer and Rachel Reeves congratulated each other on finally agreeing a defence plan today – even though it is far short of what the military said was needed 

Sir Keir insisted the proposals were the ‘right choice for the country’ in a desperate speech talking up his legacy, but admitted they would mean some road and energy projects being scrapped

Sir Keir is due to attend the Nato summit in Turkiye alongside Mr Trump, who has been highly critical over the lack of military investment

Sir Keir said annual defence spend will increase from £54billion to £80billion by 2029, claiming that would reverse the ‘corrosive hollowing out’ of the armed forces.

He heaped praise on Defence Secretary Dan Jarvis, without mentioning his predecessor, and said Ms Reeves had put the finances ‘on a solid footing’.  

‘I want to thank the Defence Secretary, the CDS (chief of the defence staff) here and the Chancellor for their work to sharpen and strengthen the plan in recent weeks, so that we can set out today how we will transform our armed services whilst also giving industry the certainty that they need to invest, and giving our allies clarity on our intent ahead of the Nato summit next week,’ the PM said.

‘This plan represents our best judgment of what the country needs to meet this moment and it is a platform on which I know my successor will build.’

Sir Keir swiped at a plan backed by some Burnham allies to issue ‘defence bonds’, dismissing them as ‘borrowing by another name’.

‘We’ve looked at this very carefully, but the fact is doing this through borrowing would push interest rates higher at a time when one pound in every 10 already goes on paying debt interest,’ he said.

Sir Keir also said he would not cut day-to-day spending to fund defence.

He said: ‘Slash funding to our public services in favour of defence, and we would be fundamentally weaker as a nation, more fractured as a society, less able to defend ourselves when our enemies prey on social division.

‘So the hard truth is there are no easy answers, but the settlement I’m setting out today is the right choice for the country.

‘It delivers the decisive action we need on defence in a way that is within our fiscal rules and that will not take resources away from day-to-day spending on frontline services like health and education.

‘Instead, it is funded by reallocating spending from across Government departments, reallocating capital budgets by one penny in every pound, while still maintaining public investment at the highest sustained levels since the 1970s.’

He added: ‘Therefore, some capital projects, for example on roads and energy, which are important but not immediately vital, will no longer go ahead as planned.’

Sir Keir was asked about his previous warning that Russia could attack the UK by 2030. 

Challenged whether he could say the DIP was enough deter or fight Moscow’s forces by then, the premier insisted: ‘Yes I can, and that’s because of the increase in defence spending that we put in place last year, announced last year, already in place, which was the single-biggest increase, sustained increase, since the 1980s, and the fact that this defence investment plan builds on that.

‘And it’s not just the amount of money, it’s also the capabilities.

‘We’ve learned a lot from Ukraine, actually also from Iran as well, about the capability that is needed in order to confront countries like Russia.

‘That is exactly what is going on in Ukraine, so I am confident in that.’

The apparent reference to Iran’s effectiveness in responding to US attacks could cause friction with Mr Trump.  

Mr Healey and his former deputy Al Carns, who also resigned earlier this month, are poised to make what could be highly damaging interventions in the Commons later. 

The PM’s last big moment on the world stage could be extremely tricky despite the marginally higher funding. 

Sir Keir is due to attend the Nato summit in Turkiye alongside Mr Trump, who has been highly critical over the lack of military investment.

The member states have committed to spending 3.5 per cent of GDP on defence, with an extra 1.5 per cent on ‘resilience’ measures. 

A White House official sent another shot across the bows of the UK and other allies last night, saying: ‘President Trump expects Nato allies to abide by their 5 per cent defence spending pledge.’ 

Sir Keir is on track to be out of Downing Street on July 20, with Mr Burnham closing in on a ‘coronation’.

His allies had pushed to delay the DIP until after he had taken charge. 

It is far from clear what the former Greater Manchester Mayor will do on defence, after he gave his first big speech yesterday but refused to answer any questions.

The plans include a £5billion drone ‘transformation’, but it has emerged just £1billion of this is fresh investment, with a £4billion drone programme having been announced last year. 

The bid to manufacture hundreds of thousands of drones over the next four years is a major part of the DIP.

That could rise to millions of drones at a time of conflict – Ukraine expends 200,000 every month to thwart Russian attacks.

Sir Keir met Nato secretary general Mark Rutte in No10 yesterday 

The DIP will also include proposals to build six so-called ‘budget warships’ – replacing more expensive destroyers.

Service chiefs say a cash injection of £28billion over four years is needed to make the UK secure – but the soon to depart PM has only offered, it is suggested, £14.5billion.

Tory defence spokesman James Cartlidge said: ‘This is too little too late. Too little because it is barely more than John Healey and Al Carns resigned over, and too late because the plan is almost a year overdue. It is only being rushed through because Keir Starmer is desperate for a legacy.