Key facts
- Keir Starmer has launched a Defense Investment Plan allocating an additional £15 billion to the UK armed forces.
- The plan includes £5 billion for autonomous systems like drones and uncrewed vehicles.
- The defense budget will total nearly £300 billion over the next four years.
- The plan lacks a clear funding roadmap to meet the UK's NATO commitment of 3.5% of GDP by 2035.
- Successor Andy Burnham will need to find billions in savings and new funding in his first budget and spending review.
- The DIP requires £4.7 billion in savings from other departments.
Outgoing UK Prime Minister Keir Starmer has unveiled a significant Defense Investment Plan (DIP), committing an additional £15 billion to the armed forces over the next four years. This plan, intended to bolster national security and cement Starmer's legacy, includes £5 billion specifically for autonomous systems like drones and uncrewed vehicles, bringing the total defense budget to nearly £300 billion.
However, the DIP has been criticized for lacking a concrete funding pathway to meet the UK's NATO target of 3.5 percent of GDP by 2035. Current projections indicate the defense budget will reach 2.7 percent of GDP next year, with no significant increase expected before 2030. This leaves Andy Burnham, Starmer's likely successor, with the considerable challenge of identifying billions of pounds in new funding and savings from other departments in his first budget and spending review.
Starmer used the announcement to highlight his administration's achievements, including support for Ukraine and efforts to stabilize the region following the Iran conflict. He emphasized that the DIP represents the "biggest sustained increase in defence spending since the 1980s." Despite the plan providing some certainty for the defense industry, former Defence Secretary John Healey resigned in protest over the lack of a clear funding roadmap, arguing that a target date for increased spending is crucial for European security.
Industry representatives expressed relief at the clarity provided by the DIP, which allows for strategic decision-making. However, concerns remain about the pace of rearmament compared to allies. Starmer also cautioned against financing options like 'war bonds,' suggesting they could increase interest rates. The plan requires £4.7 billion in savings from other departments, with £1.8 billion needing to be found in the current financial year. Allies of Burnham have indicated his support for the plan but have not disclosed specific funding strategies.