Prime Minister Sir Keir Starmer has published the long-delayed defence investment plan (Dip), committing £15 billion to military spending, funded by scrapping road and energy projects. He stated that the UK must prepare for war to deter enemies, saying: "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."
Defence spending to rise to £80 billion by 2029
Annual defence spending will increase from £54 billion under the previous government to £80 billion by 2029, according to Sir Keir. Speaking at a drone company in Berkshire, he said the plan reverses the "corrosive hollowing out" of the armed forces. Chancellor Rachel Reeves, also present, confirmed the funding came from "reprioritising spending" across government, specifically by raiding Whitehall capital budgets.
Trade-offs and impact on public services
Sir Keir acknowledged trade-offs, noting that some capital projects on roads and energy, while important, would not proceed as planned. He emphasised that 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 explained.
Political context and legacy
The Dip was originally due last year after the strategic defence review but was delayed by Whitehall wrangling. John Healey resigned as defence secretary earlier this month, claiming he was offered only £13.5 billion. His successor, Dan Jarvis, secured the additional £1.5 billion, though defence experts consider the total insufficient. The announcement may be one of Sir Keir's final acts as prime minister, with Andy Burnham expected to replace him. Sir Keir expressed confidence that his successor would build on the defence spending increases.
