Al Carns has snubbed a role in Andy Burnham's Cabinet as the former marine said an "unsettled argument" continues to plague Labour.
The former Armed Forces minister resigned last month as he hit out at Sir Keir Starmer and Rachel Reeves of allocating insufficient funds for the military.
And, penning a statement today, Mr Carns said the issue of defence spending still remained "unsettled".
The former marine stepped away from the frontbench after John Healey resigned as Defence Secretary over the same reason.
Armed Forces called for £28bn of extra funding for the Armed Forces by 2035, while the Treasury failed to even offer up half of the demand.
Penning a lengthy response on the job offer, Mr Carns said: "I had a good conversation with the Chief Whip today where she offered me a return to Government.
"After careful thought, I declined, with respect and with thanks.
"I resigned in June because I did not believe the defence funding on the table was adequate for the threats this country faces.
"I said so publicly and I still stand by every word. I've always said I would serve where I am asked. In normal circumstances, that is exactly what I would do, but the argument I resigned over has not yet been settled.
"To take another role now, in another department, would suggest that it has."
He added: "Until the country is spending what it needs to spend on its own defence, my job is to keep making that case, honestly and constructively, from the backbenches."The appointment of John Healey as Chancellor changes the picture in one important respect.
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"John resigned for the same reasons I did. He is a man of his word and he has made it clear that he will deliver on the commitments that led him to leave Government in the first place.
"The Prime Minister knows exactly what John stands for and that appointment is meaningful and I welcome it.
"The people around the Cabinet table and across Government are doing difficult jobs in a difficult moment and I will do everything I can from the backbenches to help our party and country succeed.
"Where I believe more needs to be done, I'll keep making that case in good faith."
He addressed there was room for "serious work" on the Northern Ireland Legacy Bill, as well as plans to make the country "fitter and healthier".
Previously, Mr Carns said that he would have to "see the plan" before accepting a ministerial role in Mr Burnham's administration.
Mr Healey, as the newly-appointed Chancellor, must find several billions for the Defence Investment Plan ahead of Labour's next Budget.
As part of the controversial and long-awaited plan, Sir Keir said his successor would have to scavenge through Whitehall departments to fill a £15billion hole in Britain's defences.
In his first appearance since being appointed to the top job, Mr Healey steered clear from ruling out tax hikes to fund defence.






