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UK to spend record €348 billion on defence over four years

Created at 30 Jun · 11:10 AM1 source↑ Market-relevant
IN SHORT

British Prime Minister Keir Starmer announced a new 10-year Defence Investment Plan, committing nearly £300 billion (€348 billion) over the next four years to modernize the UK's armed forces amid rising global threats, particularly from Russia.

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Key Numbers

€348 billionUK defence spending over four years
£300 billionTotal defence budget over four years
£15 billionAdditional defence funding over four years
€17 billionAdditional defence funding over four years
£5 billionInvestment in drones and autonomous systems
€5.8 billionInvestment in drones and autonomous systems
3.5%UK's target defence spending as % of GDP by 2035
200,000Drones Ukraine uses monthly

Who's Involved

Keir Starmer
British Prime Minister announcing defence plan
John Healey
Defence Secretary who resigned over spending proposals
Al Carns
Junior Defence Minister who resigned
Andy Burnham
Likely successor to Starmer, facing pressure on defence commitments
James Cartlidge
Opposition Conservative Party defence spokesperson
Donald Trump
US President urging NATO allies to spend more on defence
UK to spend record €348 billion on defence over four years

↳ Why This Matters

The substantial increase in UK defence spending signals a significant shift in national security priorities amid escalating geopolitical tensions, particularly concerning Russia's actions in Ukraine. This commitment aims to bolster the UK's military capabilities, especially in emerging technologies like drones, and aligns with NATO's strategic goals, potentially influencing defense postures across

Key facts

  • UK Prime Minister Keir Starmer announced a new 10-year Defence Investment Plan.
  • The plan commits nearly £300 billion (€348 billion) over the next four years to modernize the UK's armed forces.
  • This represents an additional £15 billion (€17 billion) in funding.
  • Over £5 billion (€5.8 billion) will be invested in drones and autonomous systems.
  • The UK aims to reach NATO's defence spending target of 3.5% of GDP by 2035.

British Prime Minister Keir Starmer has announced a significant increase in defence spending, committing nearly £300 billion (€348 billion) over the next four years as part of a new 10-year Defence Investment Plan. This represents an additional £15 billion (€17 billion) in funding, achieved by reprioritizing spending across government.

The plan aims to modernize the UK's armed forces in response to rising global threats, particularly from Russia, and seeks to reverse years of military decline. A key focus of the investment will be on drones and autonomous systems, with over £5 billion (€5.8 billion) allocated to this area over the next four years. The UK military is also working towards NATO's target of increasing defence spending to 3.5% of GDP by 2035.

The announcement follows internal government wrangling over resources, which led to the resignations of Defence Secretary John Healey and junior Defence Minister Al Carns. Healey stated that the spending plans risked making Britain "less safe." Starmer, who is expected to leave office next month, framed the decision as essential for national and economic security, drawing parallels to the transformative impact of drones in the Ukraine conflict.

Opposition parties criticized the plan, with Conservative defence spokesperson James Cartlidge calling it "too little, too late" and suggesting it was rushed for Starmer's legacy. Starmer is likely to attend a NATO summit in Turkey in early July, which may be one of his final acts as prime minister. His successor will face pressure to uphold the commitments outlined in the defence plan.

Frequently asked questions

The UK plans to spend nearly £300 billion, equivalent to €348 billion, on defence over the next four years.

The increased spending is driven by rising global threats, particularly from Russia, and the need to modernize the UK's armed forces.

Over £5 billion (€5.8 billion) is allocated for drones and autonomous systems over the next four years.

The UK aims to increase military spending to NATO's target of 3.5% of GDP by 2035.

What Happens Next

01Keir Starmer's successor will be under pressure to adhere to the defence plan commitments.
02Starmer is expected to attend a NATO summit in Turkey on July 7-8.

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Cadence

How It Developed

Prime Minister Keir Starmer announced a 10-year Defence Investment Plan.
The plan commits nearly £300 billion (€348 billion) over four years to modernize UK armed forces.
The defence budget will increase by £15 billion (€17 billion) over the next four years.
Over £5 billion (€5.8 billion) will be allocated to drones and autonomous systems.
The UK aims to increase military spending to NATO's target of 3.5% of GDP by 2035.
Defence Secretary John Healey resigned over spending proposals.
Starmer announced he will resign as Prime Minister.
Opposition criticized the plan as 'too little, too late'.

Sources

T1
UK to spend 'record' €348 billion on defence over next four years, PM Starmer saysEuronews

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