Prime Minister Sir Keir Starmer has unveiled a long-delayed £15 billion defence investment plan (Dip), funded by scrapping road and energy projects and reallocating capital budgets across government departments. The plan aims to increase annual defence spending from £54 billion to £80 billion by 2029, reversing what Starmer described as the “corrosive hollowing out” of the armed forces.
Speaking at a drone company in Berkshire, Starmer said: “When the world is arming and aggression is rising, the best way to avoid war is to prepare for it. The best way to defend is to deter, to have the strength to make your adversaries think again before they act.”
Funding and Trade-offs
Chancellor Rachel Reeves, who accompanied Starmer, confirmed the extra money came from “reprioritising spending” across government, specifically by raiding Whitehall capital budgets. Starmer acknowledged there were “no easy answers” but insisted the Dip would not take resources from day-to-day spending on frontline services like health and education. “Instead, it is funded by reallocating spending from across government departments, reallocating capital budgets by one penny in every pound, while still maintaining public investment at the highest sustained levels since the 1970s,” he said. He added that some capital projects on roads and energy, “which are important but not immediately vital, will no longer go ahead as planned.”
Political Context and Defence Spending Targets
The Dip, originally due last year after the strategic defence review, was delayed by Whitehall wrangling. Former Defence Secretary John Healey resigned earlier this month, claiming he was only offered £13.5 billion. His successor Dan Jarvis secured the additional £1.5 billion, though defence experts say the total remains insufficient. The announcement may be one of Starmer’s final acts as prime minister, with Andy Burnham expected to replace him within weeks. Starmer said he is “absolutely certain” his successor will build on the defence spending increases.
The UK has committed to NATO’s target of spending 3.5% of GDP on defence by 2035. The Dip will raise spending to 2.7% in 2027-28, which officials say puts the government on track. Over four years, total defence investment will reach £298 billion, including the extra £15 billion. However, this falls short of the £28 billion military chiefs reportedly requested.
Key Measures in the Dip
- £64 billion for renewing the UK’s nuclear deterrent, including new submarines, a sovereign warhead, and F-35A fighters capable of carrying nuclear bombs.
- More than £8 billion for the global combat air programme (Gcap) with Japan and Italy to build next-generation jets for the RAF.
- Around £5 billion for a “drone transformation” of the armed forces, drawing on lessons from the war in Ukraine.
- Some £11 billion on munitions and weapons to build stockpiles and ensure the armed forces have shells, bombs, and missiles.
Reactions
NATO Secretary General Mark Rutte welcomed the plan as a “good step” towards the 3.5% target, saying: “Stronger UK defence makes us all safer.” However, General Sir Richard Barrons, co-author of the 2025 strategic defence review, told BBC Radio 4’s Today programme the plan is “not going to crack the issue” of properly funding the armed forces. “We’re not keeping up with our allies, we’re certainly not keeping up with our enemies, and we know that the US is no longer going to come and save European security in the face of a Russian threat,” he said.
Andrew Fox from the Henry Jackson Society think tank warned of a “real danger” that the government is learning the wrong lessons from Ukraine by focusing on drones. “Drones complement tanks, warships, combat aircraft, air defence, logistics and industrial capacity – they do not replace them,” he said. “Using drones as a justification for avoiding the hard decisions on investing in Britain’s conventional military strength will leave the armed forces less prepared for future conflict.”
