Ministers have criticised the Government for its plans to slash roads funding by a staggering £700million to fund the long-awaited Defence Investment Plan (DIP).
Earlier today, Sir Keir Starmer finally announced the terms of the £15billion funding boost for the armed forces, military readiness and the UK's nuclear deterrent.
This included £298billion of investment over the next four years, with £15billion of additional purchasing being included on top of last year's Spending Review.
Labour has emphasised that the proportion of GDP spent on defence will now be higher than at any time during the last 30 years by the end of the decade.
It will also put the UK on track to meet NATO's defence spending by 2035, in addition to creating nearly 60,000 extra direct and indirect jobs.
Despite this, Sir Keir Starmer confirmed that some road and energy projects would not be progressing forward as originally planned to boost defence spending.
The Department for Transport is expected to save £700million by cancelling road projects, including the A38 Derby Junctions and A46 Newark Bypass.
East Midlands Mayor Claire Ward has slammed the plans, saying that her region was facing the largest hit from the proposed defence spending cuts.
Labour has come under fire for slashing road projects to fund the Defence Investment Plan
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She told Sky News: "What I'm complaining about today is that the East Midlands would appear to be the only region that has been told it is sacrificing its road investments programme in order to be able to contribute to the DIP.
"What I got today was not that level of engagement, not a sensible grown-up conversation which would say: 'What is it that you are prepared to contribute in order to support the DIP?'"
The potential moves have also been criticised by Lincoln MP Hamish Falconer and Mid Derbyshire MP Jonathan Davies.
Both MPs said they were "disappointed" given the lack of clarity, in addition to the risk of it putting a "brake on economic growth".
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The A46 Newark Bypass is one of the schemes that could be cancelled
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The upgrades were part of the Government's £27billion road investment strategy for England earlier in 2026, and were earmarked to reduce congestion.
Mr Falconer took to social media to lament the plans to target the A46 Newark Bypass widening scheme.
He said: "I support further funding for the DIP, but the A46 upgrade programme is well advanced, long-awaited, excellent value for money and of strategic importance to both Lincoln and the region."
The MP for Lincoln said he would be seeking an "urgent meeting" with the incoming Prime Minister, Chancellor and Transport Secretary following the Labour leadership contest.
The A38 Derby Junctions project is also expected to be cut
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Consultations will reportedly be held regarding the cancellation of these projects later this year once the plans have been finalised.
In a written Statement, Chancellor Rachel Reeves stated that the Department for Transport would provide up to £700million as part of its contribution to the Defence Investment Plan.
She stated that this money would come from road funding, although she added that more detailed plans would be shared by the autumn.
"Desnz will reshape its capital budget in a way which continues to protect the clean power mission, drive renewable and nuclear build-out and insulate us from future gas price spikes on the path to energy independence," she said.