Labour faces an investigation over claims it is 'artificially inflating' defence spending by counting intelligence cash in the budget

Labour is facing a formal investigation into whether it misled the public by counting intelligence spending within its defence budget to artificially boost headline figures. The inquiry follows accusations from defence analysts and opposition figures that the government has dressed up its commitment to national security with creative accounting rather than genuine new money.

Shadow defence figures claim Labour's method inflates the true total, masking a shortfall in frontline military investment.

Defence Secretary Jonathan Reynolds is at the centre of the probe, with critics demanding he explain how the figures were calculated.

The row echoes long-running concerns that Britain's armed forces are being underfunded while ministers talk up spending pledges.