The Ministry of Defence is facing a £28 billion shortfall in funding over the next four years, according to reports. The UK's top military chief, Air Chief Marshal Sir Richard Knighton, is said to have informed Prime Minister Sir Keir Starmer of the gap during a meeting before Christmas, also attended by Chancellor Rachel Reeves and Defence Secretary John Heeley.
The assessment, reported by The Times, covers the period up to 2030 and could influence the delayed defence investment plan (Dip). The plan, initially expected in autumn, will outline how the strategic defence review will be delivered. Sir Keir has previously vowed to make Britain “battle ready”, but his defence plans have been overshadowed by funding concerns amid warnings over Russian aggression.
A Government source insisted the UK is “on track” to fulfil commitments outlined in the review. Sir Richard, who became Chief of the Defence Staff in September, is responsible for delivering the strategic defence review published in June, which pledged to boost defence spending to 2.5 per cent of GDP by 2027, with a goal of three per cent in the next Parliament “when fiscal and economic conditions allow”.
The news comes days after Britain and France signed a historic agreement committing to deploying troops in Ukraine in the event of a ceasefire with Russia. The document, signed at a Paris summit by President Emmanuel Macron, Sir Keir, and President Volodymyr Zelensky, was hailed as a significant step in providing security guarantees for Kyiv.
An MoD spokesperson said: “The UK defence budget is rising to record levels as this government delivers the biggest boost to defence spending since the Cold War, totalling £270bn this parliament alone. Demands on defence are rising, with growing Russian aggression, increasing operational requirements and preparations for a Ukraine deployment. We are working flat out on the Defence Investment Plan, which will fix the outdated, overcommitted, and underfunded defence programme we inherited.”