Starmer Blindsided by Shock Tax Raid Bombshell as PM Battles Major Foreign Aid Revolt

Prime Minister Sir Keir Starmer faces growing unrest within his party after his decision to slash foreign aid in favour of increased defence spending sparked a backlash from Labour MPs. The decision, which reallocates billions from overseas development to the military, has drawn criticism from backbenchers, who have circulated a letter urging the Prime Minister to reconsider the move and instead impose taxes on the wealthiest Britons.

The letter, expected to be delivered before Prime Minister’s Questions on Wednesday, states: “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.” The initiative is being led by Alloa & Grangemouth MP Brian Leishman, who argues that cutting foreign aid is not the solution.

“Whilst it might seem like cutting the aid budget is more politically palatable than other cuts, the British public are generous and open-minded,” Leishman said. “We feel confident they would rather see money taken from billionaires rather than taken away from children in Sudan”, reported GB News.

Among the most vocal critics is former International Development Minister Anneliese Dodds, a longtime ally of Starmer, who resigned from her post last Friday in protest. Dodds compared the move to the foreign aid reductions enacted by former U.S. President Donald Trump.

Her resignation has intensified pressure on Starmer, with ex-Shadow Home Secretary Diane Abbott calling the cuts “shameful”, and former Shadow Defence Secretary Clive Lewis warning that Dodds’s departure could be a “big straw” leading to further discontent within Labour ranks.

Defending his decision, Starmer admitted it was a “difficult and painful decision and not one I take lightly.” However, a faction of centrist Labour MPs is reportedly lobbying for a delay in the cut until 2026 to allow charities to adjust. Foreign Secretary David Lammy and Defence Secretary John Healey are set to meet with MPs this week in an effort to ease tensions and prevent a full-scale rebellion.

The controversy follows Starmer’s announcement of a £13.4 billion boost to defence spending, raising the UK’s military budget from £53.9 billion to £67.3 billion. The cut to foreign aid would shrink its budget from £13.3 billion to just under £8 billion.

Despite opposition from within his party, Starmer’s increased defence spending has been met with praise from top Conservatives and Reform UK MPs. However, the Institute for Fiscal Studies has warned that reducing aid alone will not be enough to cover the costs if the government intends to raise military spending to three per cent of GDP.

Starmer has refused to rule out tax increases in this month’s Spring Statement, saying only: “I am not going to say in advance what we might do and what we might not do.”