Sir Keir Starmer has unveiled a new Defence Investment Plan (DIP), committing £15 billion in additional funding for the armed forces over the next four years. This figure, however, represents approximately half of the £28 billion reportedly requested by military officials for further investment. The long-awaited plan was announced by Mr Starmer alongside Defence Secretary Dan Jarvis and Chancellor Rachel Reeves, who defended the government's strategic choices.
During the announcement, Mr Starmer emphasised a shift towards modernising the UK's defence capabilities, prioritising investment in drones and advanced technology over new large warships and jets. He stated that the plan would make the armed forces "better prepared" for contemporary threats and highlighted the importance of European nations taking greater responsibility for their own defence. Chancellor Reeves underscored that protecting the UK would be a "defining pillar" of Mr Starmer's premiership, while Mr Jarvis noted the nine-month delay in the settlement's announcement.
The additional funding, according to Ms Reeves, has been secured through "reprioritising spending across government", with cuts reportedly made to road and energy projects. Mr Starmer described this as a "huge historic shift" and a "legacy in which I take pride." He projected that the government would spend £80 billion a year on defence by 2029, though he cautioned against using "war bonds" for further funding, dismissing them as "just borrowing by another name."
Despite the new investment, the plan falls short of commitments to raise defence spending to three per cent of GDP by 2030. The increase announced will lift spending by under 0.1 per cent from the current level of 2.6 per cent, reaching an estimated 2.7 per cent of the economy. John Healey, the Shadow Defence Secretary, criticised this, stating that Mr Starmer and Ms Reeves had been "unwilling" and "unable" to commit to the three per cent target.
Key projects within the DIP include £8 billion for the Global Combat Air Programme (GCAP) in collaboration with Japan and Italy, approximately £63 billion allocated for nuclear deterrence, and £5 billion for the army. Mr Starmer also indicated a focus on integrating AI systems to support uncrewed ships and using drones for intelligence gathering, aiming to make the army "ten times more lethal." The full procurement plan and detailed funding specifics are expected to be published when Defence Secretary Dan Jarvis delivers a statement in the House of Commons.
The announcement has drawn criticism from some quarters, with former NATO chief Lord George Robertson and former US adviser Fiona Hill reportedly expressing concerns about the pace and adequacy of funding. Military officials are also expected to be largely dissatisfied with the settlement. The next Spending Review, scheduled for mid-2027, could potentially lead to a revision of these funding agreements.
Source: City A.M.