Key facts
- New Defence Secretary Dan Jarvis plans to revisit the Defence Investment Plan (Dip).
- The Dip was delayed due to funding disagreements, leading to the resignation of former Defence Secretary John Healey.
- Healey resigned after being offered £13.5bn to cover an £18bn funding gap for major defence projects.
- Prime Minister Keir Starmer has committed to spending 3% of GDP on defence by the end of 2034.
- Japan is pressing the UK to sign an international contract for the GCAP next-generation fighter jet project by the end of the month.
The new UK Defence Secretary, Dan Jarvis, is reportedly planning to re-examine the nation's Defence Investment Plan (Dip), which has been a source of significant contention. Allies suggest Jarvis may seek increased funding from the Treasury, a move that could put him at odds with current fiscal constraints. The Dip's delay and the subsequent resignation of former Defence Secretary John Healey underscore the deep divisions over how to adequately resource the armed forces amidst escalating global threats from Russia and Iran.
Healey resigned after rejecting a settlement that he deemed insufficient, accusing the Treasury of failing to provide necessary funds. Sources close to Healey argue that merely tweaking the Dip misses the core issue: the lack of a clear plan to reach the 3% of GDP defence spending target by 2030. Culture Secretary Lisa Nandy confirmed that discussions about the Dip are ongoing, but other cabinet ministers expressed reluctance to reopen spending settlements.
The controversy unfolds as Prime Minister Keir Starmer prepares to attend the G7 summit, where defence and security will be key topics. Starmer has committed to increasing defence spending to 3% of GDP during the next parliament, with a target of 3.5% by 2035, aligning with NATO recommendations. This commitment follows a period of internal debate, with reports suggesting Starmer and Chancellor Rachel Reeves had previously asked Healey to review the funding balance, particularly for autonomous systems and drones.
In parallel, the Royal Marines conducted a successful operation to seize a Russia-linked oil tanker in the English Channel, an event Starmer highlighted as a blow to Vladimir Putin. Meanwhile, Japan is urging the UK to finalize an international contract for the GCAP next-generation fighter jet project by the end of July, adding another layer of urgency to the defence investment discussions.