Sir Keir Starmer has set out the long-delayed defence investment plan (Dip), pledging billions of pounds to prepare Britain for war by 2030. The plan includes a £15 billion increase in defence spending, funded by scrapping investments elsewhere, and focuses on modernising the armed forces with drones, a hybrid navy, and a new fighter jet.
Defence Spending Increase
Chancellor Rachel Reeves confirmed the Treasury provided an extra £15 billion for the Dip, above last year's increase paid for by cutting the aid budget. This figure is higher than the previous offer of £13.5 billion that led to John Healey's resignation as defence secretary, but below the £28 billion defence chiefs reportedly requested. Sir Keir said he would not cut day-to-day spending on frontline services but scrapped some capital projects not "immediately vital," including some roads and energy projects. The uplift will see annual defence spending reach £80 billion by 2029, up from £54 billion when Labour came to power.
Defence Bonds Ruled Out
The Prime Minister ruled out using more borrowing to fund defence, dismissing calls from the Liberal Democrats and others for "defence bonds." Sir Keir said the government looked "very carefully" at the proposal but called it "borrowing by another name." He added: "The fact is doing this through borrowing would push interest rates higher at a time when one pound in every 10 already goes on paying debt interest."
Drone Transformation and New Fighter Jet
Learning lessons from Ukraine and Iran, Sir Keir pledged over £5 billion over four years for a "drone transformation" of the armed forces. Some £650 million will be spent on combat and surveillance drones for land forces, which he said would increase the Army's "lethality" ten-fold. Funding will also support a "hybrid" Royal Navy with smaller autonomous vessels working alongside crewed ships. Additionally, over £8 billion is allocated for the Global Combat Air Programme to create a next-generation stealth fighter jet with Japan and Italy, supported by smaller autonomous "wingmen" invisible to enemy radar.
Nuclear Deterrent Upgrade
Sir Keir announced a £64 billion investment in renewing the UK's nuclear deterrent, including new Dreadnought submarines, a new sovereign warhead, and 12 F35-A jets capable of carrying nuclear weapons. The Dreadnought submarines, four boats replacing the Vanguard class from the 2030s, are part of a decade-long £26 billion overhaul of naval bases at Faslane, Portsmouth, and Devonport, dubbed "Project Royal Oak."
Defence Exports Boost
The Prime Minister announced a "once-in-a-generation" £50 billion defence export facility to help British firms compete internationally, saying it would "support British defence businesses to create more jobs and opportunity up and down the country."
Successor's Support
Sir Keir said the Dip provides a "platform on which whoever comes after me can build," amid speculation that Andy Burnham could seek to rewrite part of the plan. He added the Dip was "something which any Labour prime minister would want to stand behind." However, he did not answer whether Mr Burnham had seen or signed off on the plan.
