The UK Government has today published its long-awaited Defence Investment Plan (DIP).
Due back in Autumn 2025, the plan aims to fund Britain’s Armed Forces into the next decade. In one of his final acts as Prime Minister, Sir Keir Starmer today announced an additional £15bn in funding for defence over four-years with money taken from other departments to pay for it. Nonetheless, the government has faced criticism from across Westminster on the funding allocation and the extent to which the DIP meets the challenges the country faces today and into the near future.
For the Prime Minister, this has come at a huge personal political cost. Lord Robertson, the highly respected lead author of the UK’s first independent Strategic Defence Review (SDR), published in June 2025, gave a carefully constructed speech in April directly criticising Sir Keir and Chancellor Rachel Reeves in what he described as a ‘corrosive complacency [today] in Britain’s political leadership’. More recently, two defence ministers, including the Secretary of State John Healey, resigned over the Prime Minister’s political weakness when faced with commitments to fund defence.
While the government has accepted the SDR’s 62 recommendations, the DIP today makes clear and sensible allocations in areas set out below and supportive of last year’s SDR. Yet at its heart, the monies still fail to add up to fund UK defence with many across defence industry and the military having already spoken to this fundamental point.
The plan itself focuses on cheaper, uncrewed autonomy, space, land lethality, cyber and electromagnetics in addition to £11bn to replenish the weapons and munitions sent to Ukraine and £63bn for the nuclear deterrent – it alone is some 20 per cent of the overall budget.
The 81-page plan delivered to Parliament by the new Defence Secretary Dan Jarvis, sets the course for defence spend of only 2.7% of GDP by 2030. Tan Dhesi MP, Chair of the Commons Defence Select Committee, said the government has not provided a ‘clear pathway’ to spending the committed three per cent of GDP on defence.
There remain unanswered questions over the allocation of funds for capital spend in an environment of large personnel expense and general fiscal realism. While the SDR set an ambition within tight spending envelopes, the DIP was meant to be a serious credibility test of government.
In a wider update to the Commons, Dan Jarvis did not rule out the UK joining a defence investment bank, an idea championed by former Bank of England Governor, Mark Carney, the now Prime Minister of Canada. This is something the Treasury has resisted. Of interest, former Health Secretary Wes Streeting asked Jarvis if the government would reconsider joining in the Commons earlier today.
Beyond equipment, the government has committed to invest £70m to support veterans through the Office for Veterans Affairs, including £12m investment in a new fund for reducing veteran homelessness.
Ultimately, all government policy, including defence, is Treasury-driven and what the PM thinks matters most; this most recent review and debate over funding secured the fate of Prime Minister Starmer. In a matter of weeks, the UK government will be under new leadership, faced with the very real and pressing challenges of national security. With visibility of government priorities and funding allocated, now the defence industry small and large can answer the government’s call and GK Strategy is ready to help with engagement, both in procurement and senior relationships in DE&S, Main Building and across Whitehall.
Please email Senior Partner and defence and security lead Scott Dodsworth to learn more. scott@gkstrategy.com
SD. Tuesday 30 June 2026