Key facts
- The UK defence secretary secured an additional £1.5 billion for defence spending.
- The majority of the new funds will be used to increase drone capabilities.
- The defence investment plan aims to deter Russia and Iran.
- The funding increase helped reduce a £18 billion deficit by £15 billion.
- The drone spending over four years will rise to £5 billion.
- Other government departments will face capital budget cuts of at least 1%.
The new UK defence secretary, Dan Jarvis, has successfully secured an additional £1.5 billion for the nation's defence investment plan, a move that addresses a significant funding gap and bolsters spending on drones. This funding aims to enhance capabilities to deter potential threats from Russia and Iran.
The agreement follows internal government disputes over closing an £18 billion deficit, which had previously led to the resignation of former defence secretary John Healey. The newly allocated funds, slightly exceeding the £13.5 billion initially promised, have allowed Jarvis to increase the planned drone expenditure from £4 billion to £5 billion over the next four years.
To help finance this increase, other government departments will be required to reduce their capital budgets by at least 1%. Sources close to Chancellor Rachel Reeves indicated that Jarvis's direct negotiations with her, rather than through the prime minister, facilitated a smoother agreement compared to his predecessor's frustrations.
Jarvis's plan includes providing Royal Marine commandos with additional uncrewed speedboats from Kraken Technology. These vessels are intended for peacekeeping missions in the Strait of Hormuz, specifically to detect hostile drones, contingent on a peace agreement between the US and Iran.
Keir Starmer is set to unveil the comprehensive 80-page defence plan, emphasizing its role in strengthening national security and creating jobs across the UK. Similar arguments have been made by Andy Burnham, the likely successor, who advocates for public procurement to support domestic suppliers.
Concerns about the UK's defence spending levels have been voiced by former service chiefs and Tony Radakin, the previous head of the armed forces, who urged for a 'Moscow test' to gauge the perception of defence decisions by Russia. Starmer has committed the UK to spending 3.5% of its GDP on defence by 2035.
Nato Secretary General Mark Rutte expressed confidence in the UK meeting its defence spending commitments, acknowledging that the 3.5% target would not be reached immediately. He also highlighted the economic benefits of defence spending, noting its dual role in ensuring national security and fostering job creation.