The UK Government’s long-awaited Defence Investment Plan was released at the end of June. The Executive Summary of the document states:
“The Defence Investment Plan is backed by £298bn of investment over the next four years. The Plan will transform our Armed Forces, delivering on the vision of the 2025 Strategic Defence Review, as we move to war fighting readiness, back British jobs and businesses, and show UK leadership as we step up European security.
The Plan is a summary of the major investment choices the Government has made for UK Defence. This is not the entirety of UK Defence’s budget or capabilities, but it is intended to demonstrate to Parliament and the public, as well as industry, how the increasing investment in Defence is being spent.
The world has changed in the last 12 months. Demands on Defence are rising.
President Putin’s aggression is growing around our shores, in the High North, across Europe, and in Ukraine. NATO is now warning that Russia could be ready to use military force against the Alliance by the end of this decade.
The Iran war has fundamentally changed the Middle East and reinforced the priority on Integrated Air and Missile Defence.
The US is rightly demanding that Europe steps up, and does so more quickly, on European security. This year, the UK also confirmed that we would deploy our Armed Forces to Ukraine after any ceasefire agreement and the UK is leading new NATO missions in the Arctic and High North, as well as a multinational military mission for the Strait of Hormuz.
In this new era of rising threats and rising demands on Defence, we need a new era for Defence investment, and this is what this Plan delivers. This is the first duty of this Government – to provide our Armed Forces with what they need to keep our country and our citizens safe.
Transforming our Armed Forces
We are ending the hollowing out of the past and investing in the technology of the future – learning the lessons from the Ukraine war and conflict in the Middle East to equip our forces to confront and deter the latest threats. Our investment will improve our military readiness and renew the nation’s commitment to those who serve as we turn around the morale, recruitment, and retention of our Armed forces.
Restoring morale and fixing recruitment: With three above-inflation pay rises and a generational renewal of military housing, backed by £9bn over the next ten years on our Defence Housing Strategy, with nine in ten military homes upgraded or modernised1 , a new Defence Housing Service which will put forces families first, new property standards, and accelerated delivery of new homes on surplus Defence land. Defence is supporting its people, who are central to delivering the transformation of the Armed Forces.
Autonomy: Over £5bn into autonomous systems over the next four years. We will build a Hybrid Navy with new autonomous vessels and uncrewed sub-surface vessels, an Army transformed by AI, armed autonomous vehicles and drones, and a Next Generation Royal Air Force with new autonomous fighter jets capable of operating from land bases or aircraft carriers. We have established a new Defence Uncrewed Systems Centre in Swindon, and an Uncrewed Systems Taskforce to embed these capabilities across our Armed Forces.
Land Lethality: Over £20bn to rapidly multiply the Army’s lethality by ten times through autonomous systems, long range missiles, AI, and armoured vehicles, underpinned by a new doctrine of fighting by recce-strike at all levels. This investment will contribute to our longer-term commitment of a transformed Strategic Reserve Corps for NATO.
Cyber and Electromagnetic: £2.5bn into the cyber and electromagnetic domain to grow the new Defence Cyber and Electromagnetic Force, enable freedom of action and defend the UK against daily cyber attacks.
Space: We are investing in UK Space Command to enhance space control, including developing capabilities to increase our awareness of space activities and protect critical national assets in orbit.
Backing British
This Government is building up the British defence industrial base and skills base and making defence an engine for growth. We will deliver genuine British benefits from every UK defence contract – British investment, jobs, factories, skills, and apprenticeships.
Boosting British industry and British skills: Creating nearly 60,000 new jobs by 2029/30 compared to 2023/24 levels, and investing in British skills, with new Defence Technical Excellence Colleges and funding defence degrees. We will implement the Defence Industrial Strategy, reforming defence procurement, expanding UK exports and introducing a new offsets regime, subject to consultation, to ensure if we buy from abroad, there must be British jobs and benefits created.
Securing the UK Nuclear Deterrent: Investing over £20bn more in the Defence Nuclear Enterprise (DNE) over the next four years than the previous four years to modernise and sustain our nuclear deterrent, the cornerstone of our national security. This will fund our new deterrent submarines and warheads, establish a nuclear fuels programme, start defining the Dreadnought successor, and upgrade our infrastructure across the defence nuclear estate. In addition to the DNE’s investments, we will also purchase F-35As and join NATO’s Dual Capable Aircraft nuclear mission.
Supporting Veterans: Invest £70m in support for Veterans, through the Office for Veterans Affairs. We will deliver the VALOUR programme, including new veterans’ hubs across the UK, and back Operations RESTORE, ASCENT, COURAGE, and FORTITUDE to ensure that those who have served are supported by Defence beyond their time in uniform.
Innovation, AI and quantum: £1.6bn investment in UK Defence Innovation (UKDI) over the next four years will accelerate the development, scaling, and adoption of advanced and dual use technologies across Defence. This includes embedding and expanding AI and quantum across the Armed Forces – from GCAP, Collaborative Combat Aircraft (CCAs – autonomous fighter jets), and Project ASGARD to the Hybrid Navy – supported by a new £200m investment in Taskforce RAID (AI investment fund) and Project FRONTIER.
Shipbuilding: We will invest in new autonomous surface vessels, autonomous sub-surface vessels, an amphibious fleet, potentially with the Netherlands, and a future Common Combat Vessel, while also delivering a combined force of 13 Type 26 frigates with Norway, five Type 31 frigates and Fleet Solid Support ships.
Land Industrial Capacity: The government has re-established onshore manufacturing of heavy gun barrels with a new factory in Telford and using UK steel from Sheffield Forgemasters. These revived facilities are already delivering artillery to Ukraine and will provide the barrels for the Army’s new RCH155 artillery howitzers. In addition, we have substantially increased munitions production with BAE Systems Glascoed establishing a second meltcast. We intend to further build back British manufacturing this Parliament with plans to onshore production of the Army’s future rifle, alongside substantial continued investment in Challenger 3, Ajax, and Boxer combat vehicles.
Aerospace Sector: Over £1.1bn of new investment to upgrade and sustain the Typhoon force into the 2040s, of major benefit to the UK’s world leading aerospace sector, supporting UK jobs and providing significant investment to the UK economy, with significant export opportunities. We will buy additional F-35s, benefitting from the substantial UK workshare they bring, and we will grow our combat air industry through development of Collaborative Combat Aircraft (CCAs) to fly alongside our 4th and 5th generation fighters, backed by £300m of investment. In combination, this establishes our pathway to GCAP as we make significant steps towards the RAF becoming Europe’s first 6th Generation Air Force.
New Fast Jet Training System and Red Arrows: We will have new jets for a modernised fast-jet training system which will also allow the Red Arrows to replace the ageing Hawk aircraft, inspiring young generations for decades to come, part of a new Jet Training System, with a significant UK workshare.
Stepping Up UK Leadership
We will lead by example, by stepping up UK leadership in an uncertain world to strengthen both the UK’s and NATO’s ability to deter and counter Russia’s growing aggression.
Meeting our NATO commitment: The Government has committed to increasing defence spending to 3% of GDP in the next Parliament, with funding and plans to be set out at the next spending review where defence will be the number one priority. Alongside NATO allies, the UK has committed to reach 3.5% of GDP on defence spending by 2035. The UK remains committed to meeting its obligations to the Defence Investment Pledge. All Allies will review the trajectory and spend in 2029, when NATO next reviews its capability plans.
Replenishing munitions: £11.1bn on munitions and weapons to increase UK stockpiles and ensure our Armed Forces has the right ‘high-low’ mix of capabilities to defeat the full range of targets in the most efficient way, including Deep Precision Strike, low-cost cruise missiles and one-way effectors. By 2030, we will have built at least six new energetics factories and increased our national munitions production capacity.
Integrated Air and Missile Defence: £790m to enhance protection of the UK homeland and overseas bases from air, drone and missile threats over the next four years. This will revolutionise command and control and buy new radars and sensors as well as additional short range counter-drone systems. We will continue to invest in Directed Energy Weapons, upgrade Sea Viper for our Type 45 destroyers, and build a new Integrated Air, Space and Missile Defence Operations Centre.
Critical underwater infrastructure: £330m new investment into critical underwater infrastructure protection to tackle hostile activity in and around UK waters.
Digital Targeting Web: £1.8bn investment to integrate our Armed Forces through a new Digital Targeting Web. This will connect sensors, deciders, and effectors across the Integrated Force, and drive speed in deciding how to degrade or destroy an identified target across domains, underpinned by world leading AI and software.
DSTL: As part of a programme of investment at DSTL, build a new laboratory in Porton Down – to be named after Ernest Bevin, one of the major figures behind the founding of NATO – to enable new research into protection against biological threats to the UK and our allies.
The full report can be downloaded at: https://assets.publishing.service.gov.uk/media/6a44e989167a99cf0018da38/The_Defence_Investment_Plan.pdf
