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Business Live with Ian King: What Rishi Sunak’s hike in defence spending will mean for the industry

Rishi Sunak has insisted his uplift in defence spending is "fully funded" after Labour branded the announcement a pre-election "gimmick".

The prime minister was asked by journalists whether he was not "entirely squaring with people" over how the increase in defence spending by 2030 will be funded – and whether it would involve "pain" for taxpayers.

But Mr Sunak, appearing at a joint press conference with German Chancellor Olaf Scholz, said that was not a "fair characterisation" and that his pledge was "fully funded".

Mr Sunak also confirmed that the UK’s defence spending would increase to 2.5% of GDP by 2030 to meet the "growing threats" posed by the likes of Russia, China and Iran

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