A Protector RG Mk1, a next generation remotely piloted aircraft used by the RAF
The government has released its long-awaited defence investment plan (DIP), detailing the financial commitments for the UK's armed forces over the coming years.
An additional £15 billion will be allocated to defence, bringing the total to £298 billion over the next four years. This funding will cover expenditures on the nuclear deterrent and new combat aircraft.
However, the extra funding falls short of the £28 billion reportedly requested by defence chiefs. Both the Conservative and Liberal Democrat parties have criticized the plan as insufficiently funded.
Below are the key points from the 81-page document and their potential implications.
Largest increase in defence spending since the Cold War, government says
The government has increased defence spending from £54 billion annually in 2024 to £80 billion by 2029, representing a real-term increase of 27%.
Officials describe this as the largest rise in defence expenditure since the Cold War era of the 1980s.
Following John Healey's resignation as defence secretary on 11 June due to concerns over inadequate funding, his successor Dan Jarvis secured an additional £1.5 billion.
This brings the total additional funds allocated to the Ministry of Defence (MoD) to £15 billion, although the gap between required and funded amounts reportedly remains at £28 billion.
£298bn earmarked over the next four years
The plan allocates £298 billion over four years, equating to 2.7% of GDP by 2030, which is below the 3% target mandated by NATO.
For comparison, the United States spends 3.2%, Germany 3.7%, and Russia, which has mobilized its economy for war, allocates over 7.5%.
Seismic shift to smaller, cheaper, uncrewed and autonomous systems
In a speech on Tuesday, Prime Minister Sir Keir Starmer described the plan as a
"huge, historic shift for our nation".
The strategy marks a significant transformation away from costly major assets like destroyers toward large quantities of more affordable and expendable weaponry.
Dan Jarvis has recently directed his team at the MoD to revise the DIP to incorporate lessons learned from conflicts in Ukraine and the Strait of Hormuz in the Middle East.
£63bn for nuclear deterrent
Funds are designated for the UK's continuous-at-sea nuclear deterrent, including warheads and supporting infrastructure.
The plan includes purchasing F35A combat aircraft modified to carry relatively small nuclear bombs, enabling the UK to participate in NATO's European Nuclear Plan. However, these aircraft will not be delivered within this decade.
Russia currently possesses a large number of smaller tactical nuclear weapons, whereas the UK does not.
£11bn to replenish weapons and munitions sent to Ukraine
The UK has supplied substantial defence equipment to Ukraine, which has played a crucial role in resisting the Russian advance, including NLAW anti-tank weapons.
The UK's stock of AS90 self-propelled artillery has been significantly depleted, prompting the MoD to procure Swedish Archer systems as replacements.
£8bn for next-generation combat aircraft
Funding will support a collaborative project with Italy and Japan to develop the next generation of RAF stealth jets.
Similar to changes in the Army and Royal Navy, the RAF is transitioning from traditional crewed aircraft to 'hybrid' squadrons, where pilots will operate alongside numerous uncrewed drones.
£790m for air and missile defence
The government has allocated £790 million to enhance protection of the UK and overseas bases by investing in command infrastructure and acquiring new radars, sensors, and counter-drone systems.
While this investment is welcomed, military officials remain concerned about a significant gap in the UK's ballistic missile defences.
The RAF's Typhoon jets, in service since 2004 and planned to remain operational into the 2040s, will continue to serve as the primary means of intercepting drones and cruise missiles.
However, even with this funding, it is likely that an adversary equipped with hypersonic missiles could overwhelm UK defences.
£330m for protecting undersea cables
This allocation responds to Russia's growing interest in monitoring the UK's approximately 60 vital undersea cables that carry data and energy pipelines beneath the North Sea.
A Russian deep-sea research vessel, the Yantar, has been observed near the landing points of these cables.
The concern is that in the event of conflict with Russia, these cables—which transmit trillions of pounds worth of financial data—could be severed.
Size of Army to increase to 76,000
The British Army currently numbers around 74,000 personnel, a size insufficient to generate the 45,000-strong force deployed during Operation Desert Storm in 1991.
One recently retired British general has expressed doubts about the Army's ability to field even a 5,000-strong brigade for a European conflict.
The DIP aims to increase the Army's lethality tenfold by integrating crewed weapons systems with drones.
Some 'tough choices' and programmes sacrificed
Certain programmes have been cut or altered. The Royal Navy's ageing Type 45 destroyers will not be replaced by the planned Type 83 destroyers.
Instead, the Navy will evolve into a 'hybrid force' combining traditional crewed vessels with a variety of uncrewed and autonomous vessels operating on and below the waves.
The Storm Shadow missile programme will be discontinued but is expected to be replaced eventually by a new low-cost cruise missile named Stratus.
Additionally, there will be reductions in Civil Service support, and the expansion of the Cadets programme has been postponed until after 2030.
