Rishi Sunak is seeking to divert billions of pounds from foreign aid to pay for upgrades to Britain’s intelligence and defence capabilities.
The chancellor has told cabinet colleagues that increased spending on items such as enhanced cyberweapons and AI-enabled drones must come from the aid budget.
The Treasury is gearing up for a fight over the pledge that commits Britain to spending 0.7 per cent of national income on development projects.
An overhaul of foreign, defence and security policy is due to conclude in November. A desire to develop cutting-edge military technologies risks being compromised by a multibillion-pound deficit in the Ministry of Defence’s funding plans for existing kit programmes.
“The chancellor has been clear that if the review isn’t cost-neutral it is only right