Rachel Reeves warns other budgets may be cut to lift defence spending

Chancellor says she is ‘working through a range of options’ to boost the armed forces but does not want to put up taxes

Rachel Reeves has warned “difficult choices” are required to increase defence spending and other budgets may have to be cut, including welfare.

Under pressure for a faster rise in military spending amid the Iran conflict and Russia’s war in Ukraine, the chancellor said she was “working through a range of options” but preferred not to increase taxes or add to government borrowing.