Rachel Reeves has indicated that spending cuts will have to be found to fund a boost to the defence budget.

The Chancellor on Thursday declared her commitment to raising annual spending on defence from 2.3 per cent of GDP to 2.5 per cent.

However, she warned that “difficult choices” would be needed to fulfil the commitment.

The comments will come as a warning to Cabinet ministers in other departments as they will be expected to find cost savings.

Ms Reeves’ words are notable given the Treasury had been singled out as a potential blocker on Sir Keir Starmer’s push for a rise in defence spending.